SGX:1B0

Stock Analysis Report

Executive Summary

mm2 Asia Ltd., an investment holding company, produces, distributes, and sponsors films, television (TV), and online content in Singapore, Malaysia, Hong Kong, Taiwan, China, and internationally.

Snowflake

Fundamentals

Undervalued with moderate growth potential.

Share Price & News

How has mm2 Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.1%

1B0

-0.9%

SG Entertainment

0.9%

SG Market


1 Year Return

-30.4%

1B0

2.9%

SG Entertainment

0.4%

SG Market

Return vs Industry: 1B0 underperformed the SG Entertainment industry which returned 2.9% over the past year.

Return vs Market: 1B0 underperformed the SG Market which returned 0.4% over the past year.


Share holder returns

1B0IndustryMarket
7 Day9.1%-0.9%0.9%
30 Day28.3%-3.5%-2.6%
90 Day2.1%0.5%-6.8%
1 Year-30.4%-30.4%3.7%2.9%4.4%0.4%
3 Year-47.8%-47.8%-45.4%-46.5%15.5%3.1%
5 Yearn/a-16.5%-19.6%11.6%-6.9%

Price Volatility Vs. Market

How volatile is mm2 Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is mm2 Asia undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1B0 (SGD0.24) is trading below our estimate of fair value (SGD2.73)

Significantly Undervalued: 1B0 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1B0 is good value based on its PE Ratio (14.8x) compared to the Entertainment industry average (23x).

PE vs Market: 1B0 is poor value based on its PE Ratio (14.8x) compared to the SG market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: 1B0 is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: 1B0 is good value based on its PB Ratio (1.3x) compared to the XA Entertainment industry average (1.6x).


Next Steps

Future Growth

How is mm2 Asia expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1B0's forecast earnings growth (17.2% per year) is above the savings rate (2.3%).

Earnings vs Market: 1B0's earnings (17.2% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: 1B0's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1B0's revenue (7.8% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: 1B0's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1B0's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has mm2 Asia performed over the past 5 years?

30.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1B0's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: 1B0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1B0 had negative earnings growth (-18.9%) over the past year, making it difficult to compare to the Entertainment industry average (6.2%).


Return on Equity

High ROE: 1B0's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: 1B0's Return on Assets is below or equal to the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: 1B0's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is mm2 Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 1B0's short term assets (SGD284.7M) exceeds its short term liabilities (SGD236.5M)

Long Term Liabilities: 1B0's short term assets (SGD284.7M) exceeds its long term liabilities (SGD271.6M)


Debt to Equity History and Analysis

Debt Level: 1B0's debt to equity ratio (94.5%) is considered high

Reducing Debt: 1B0's debt to equity ratio has increased from 61.9% to 94.5% over the past 5 years.

Debt Coverage: 1B0's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: 1B0's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 1B0 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1B0's debt is covered by short term assets (assets are 1.108930x debt).


Next Steps

Dividend

What is mm2 Asia's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 1B0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1B0's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1B0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1B0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1B0's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of mm2 Asia's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Long Jong Chang (59yo)

2.5yrs

Tenure

0

Mr. Long Jong Chang has been the Group Chief Executive Officer of mm2 Asia Ltd. since April 3, 2017. Mr. Chang has been an Non Executive Director of Vividthree Holdings Ltd. since August 23, 2018. He serve ...


Management Age and Tenure

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: 1B0's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 1B0's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hock Seng Ong (51yo)

    Chief Corporate Development Officer & CEO of Cinema Operation

    • Tenure: 1.8yrs
  • Long Jong Chang (59yo)

    Group Chief Executive Officer

    • Tenure: 2.5yrs
  • Charles Yeo

    Managing Director of Vividthree

    • Tenure: 0yrs
  • Melvin Ang (56yo)

    Founder & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: S$125.10k
  • Ng Say Yong (56yo)

    Chief Content Officer & MD of mm2 Singapore

    • Tenure: 0yrs
  • How Kiat Chong

    Chief Financial Officer

    • Tenure: 4yrs
  • Teck Hiong Chua

    Chief Executive Officer of mm2 View

    • Tenure: 0yrs
  • Leslie Ong

    CEO & Executive Director of UnUsUaL

    • Tenure: 0yrs
  • Jay Hong (40yo)

    Chief Technology Officer of Vividthree Productions

    • Tenure: 0yrs
  • Lissa Siau

    Company Secretary

    • Tenure: 1.9yrs

Board Members

  • Jack Chia (58yo)

    Independent Director

    • Tenure: 4.9yrs
  • Dennis Chia

    Non-Executive Director

    • Tenure: 2.2yrs
  • Melvin Ang (56yo)

    Founder & Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: S$125.10k
  • Liang Pheng Tan (71yo)

    Lead Independent Director

    • Tenure: 2.8yrs
  • Terry Mak (61yo)

    Non-Executive Director

    • Tenure: 4.9yrs
  • Thomas Lei (56yo)

    Independent Director

    • Tenure: 4.9yrs

Company Information

mm2 Asia Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: mm2 Asia Ltd.
  • Ticker: 1B0
  • Exchange: SGX
  • Founded: 2008
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: S$279.073m
  • Shares outstanding: 1.16b
  • Website: https://www.mm2asia.com

Number of Employees


Location

  • mm2 Asia Ltd.
  • No. 07-11 Redhill Industrial Estate
  • 1002 Jalan Bukit Merah
  • Singapore
  • 159456
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1B0SGX (Singapore Exchange)YesNew Ordinary SharesSGSGDDec 2014

Biography

mm2 Asia Ltd., an investment holding company, produces, distributes, and sponsors films, television (TV), and online content in Singapore, Malaysia, Hong Kong, Taiwan, China, and internationally. It operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 13:12
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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