SGX:1B0

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Moderate growth potential and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1B0 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

1B0

-2.3%

SG Entertainment

-0.3%

SG Market


1 Year Return

-5.8%

1B0

36.8%

SG Entertainment

-18.4%

SG Market

Return vs Industry: 1B0 underperformed the SG Entertainment industry which returned 36.8% over the past year.

Return vs Market: 1B0 exceeded the SG Market which returned -18.4% over the past year.


Shareholder returns

1B0IndustryMarket
7 Day-1.1%-2.3%-0.3%
30 Day-10.0%-4.5%-1.4%
90 Day0.6%17.1%2.8%
1 Year-5.8%-5.8%38.5%36.8%-14.4%-18.4%
3 Year-61.7%-61.7%7.5%4.0%-14.7%-24.7%
5 Year12.5%12.5%5.3%1.2%0.2%-17.5%

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 compared to its fair value and its price relative to the market?

59.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1B0 (SGD0.18) is trading above our estimate of fair value (SGD0.14)

Significantly Below Fair Value: 1B0 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1B0 is poor value based on its PE Ratio (59.2x) compared to the XA Entertainment industry average (25.8x).

PE vs Market: 1B0 is poor value based on its PE Ratio (59.2x) compared to the SG market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 1B0 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1B0 is good value based on its PB Ratio (1x) compared to the XA Entertainment industry average (1.9x).


Next Steps

Future Growth

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

49.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1B0's forecast earnings growth (49.6% per year) is above the savings rate (2.2%).

Earnings vs Market: 1B0's earnings (49.6% per year) are forecast to grow faster than the SG market (19.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1B0's revenue (2.9% per year) is forecast to grow slower than the SG market (5.8% per year).

High Growth Revenue: 1B0's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1B0's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

  • Explore growth companies in the Media industry.

Past Performance

How has mm2 Asia performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1B0 has a large one-off loss of SGD11.7M impacting its March 31 2020 financial results.

Growing Profit Margin: 1B0's current net profit margins (1.5%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 1B0's earnings have grown by 15.5% 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 (-81.5%) over the past year, making it difficult to compare to the Entertainment industry average (1.8%).


Return on Equity

High ROE: 1B0's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is mm2 Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 1B0's short term assets (SGD258.1M) do not cover its short term liabilities (SGD259.7M).

Long Term Liabilities: 1B0's short term assets (SGD258.1M) exceed its long term liabilities (SGD203.9M).


Debt to Equity History and Analysis

Debt Level: 1B0's debt to equity ratio (94.1%) is considered high.

Reducing Debt: 1B0's debt to equity ratio has increased from 2% to 94.1% over the past 5 years.

Debt Coverage: 1B0's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: 1B0's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Long Jong Chang (60 yo)

3.33yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Wee Chye Ang
Founder & Executive Chairman3.58yrsS$125.10k43.57%
SGD 91.2m
Long Jong Chang
Group Chief Executive Officer3.33yrsno datano data
How Kiat Chong
Chief Financial Officer4.83yrsno datano data
Hock Seng Ong
Chief Corporate Development Officer & CEO of Cinema Operation2.67yrsno datano data
Ng Say Yong
Chief Content Officer & MD of mm2 Singaporeno datano datano data
Charles Yeo
Managing Director of Vividthreeno datano datano data
Wei Chien Hong
Chief Technology Officer of Vividthree Productionsno datano datano data
Teck Hiong Chua
Chief Executive Officer of mm2 Viewno datano datano data
Chin Soon Ong
CEO & Executive Director of UnUsUaLno datano data0.51%
SGD 1.1m
Kuei Lian Siau
Company Secretary2.75yrsno datano data
Wai Yin Mok
Chief Executive Officer of Vividthreeno datano datano data
Suzie Wang
Chief Executive Officer of AsiaOneno datano datano data

3.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1B0's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wee Chye Ang
Founder & Executive Chairman3.58yrsS$125.10k43.57%
SGD 91.2m
Seng Hee Chia
Independent Director5.75yrsno data0.0074%
SGD 15.4k
Choon Hwee Chia
Non-Executive Director3yrsno datano data
Liang Pheng Tan
Lead Independent Director3.58yrsno data0.0074%
SGD 15.4k
Chi Hoo Mak
Non-Executive Director5.75yrsno data0.0074%
SGD 15.4k
Chee Kong Lei
Independent Director5.75yrsno data0.042%
SGD 87.4k

4.7yrs

Average Tenure

59yo

Average Age

Experienced Board: 1B0's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$209.305m
  • 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 Analysis2020/08/13 13:45
End of Day Share Price2020/08/12 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.