DBS Vickers Securities has started coverage of mm2 Asia with a “buy” and target price of $1.05.
In a Tuesday report, analyst Ling Lee Keng says mm2 Asia is poised to ride on the growing demand for local production and will continue to grow its presence in Taiwan, Hong Kong and China, by leveraging on the business relationships it has established.
“We expect mm2 Asia to grow at EPS CAGR of 40% for FY15 to FY18F,” says Ling.
To support this growth, mm2 Asia intends to spread its wings to one of the most lucrative movie market – China
The group has already co-produced several productions in China since 2013 and is currently working on a few movies in China.
Chinese films generally have bigger budgets and better margins than local productions.
Besides movie production and distribution which offers high gross margin of about 40% to 45%, mm2 Asia recently acquired five cineplexes in Malaysia and some related businesses.
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In a Tuesday report, analyst Ling Lee Keng says mm2 Asia is poised to ride on the growing demand for local production and will continue to grow its presence in Taiwan, Hong Kong and China, by leveraging on the business relationships it has established.
“We expect mm2 Asia to grow at EPS CAGR of 40% for FY15 to FY18F,” says Ling.
To support this growth, mm2 Asia intends to spread its wings to one of the most lucrative movie market – China
The group has already co-produced several productions in China since 2013 and is currently working on a few movies in China.
Chinese films generally have bigger budgets and better margins than local productions.
Besides movie production and distribution which offers high gross margin of about 40% to 45%, mm2 Asia recently acquired five cineplexes in Malaysia and some related businesses.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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