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.

Risks

  • mm2 Asia has significant price volatility in the past 3 months.

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

-9.3%

SGX:1B0

-2.0%

SG Entertainment

-0.8%

SG Market


1 Year Return

-55.7%

SGX:1B0

-11.3%

SG Entertainment

-2.7%

SG Market

1B0 underperformed the Entertainment industry which returned -10.3% over the past year.

1B0 underperformed the Market in Singapore which returned -3.3% over the past year.


Share holder returns

1B0IndustryMarket
7 Day-9.3%-2.0%-0.8%
30 Day-17.3%-10.3%-6.4%
90 Day-24.1%-13.0%-1.3%
1 Year-55.7%-55.7%-10.3%-11.3%1.1%-2.7%
3 Year-47.6%-47.6%-37.5%-38.6%15.9%3.6%
5 Yearn/a-33.1%-36.6%7.9%-9.7%

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

mm2 Asia's share price is below the future cash flow value, and at a moderate discount (> 20%).

mm2 Asia's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

mm2 Asia is good value based on earnings compared to the Asia Entertainment industry average.

mm2 Asia is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

mm2 Asia is good value based on expected growth next year.


Price Based on Value of Assets

mm2 Asia is overvalued based on assets compared to the Asia Entertainment industry average.


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

mm2 Asia's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

mm2 Asia's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

mm2 Asia's revenue growth is expected to exceed the Singapore market average.

mm2 Asia's earnings growth is expected to exceed the Singapore market average.

mm2 Asia's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

mm2 Asia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

mm2 Asia has delivered over 20% year on year earnings growth in the past 5 years.

mm2 Asia's 1-year earnings growth is negative, it can't be compared to the 5-year average.

mm2 Asia's 1-year earnings growth is negative, it can't be compared to the Asia Entertainment industry average.


Return on Equity

mm2 Asia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

mm2 Asia used its assets less efficiently than the Asia Entertainment industry average last year based on Return on Assets.


Return on Capital Employed

mm2 Asia's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is mm2 Asia's financial position?


Financial Position Analysis

mm2 Asia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

mm2 Asia's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

mm2 Asia's level of debt (94.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (61.9% vs 94.5% today).

Debt is not well covered by operating cash flow (10.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate mm2 Asia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate mm2 Asia's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as mm2 Asia has not reported any payouts.

Unable to verify if mm2 Asia's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as mm2 Asia has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of mm2 Asia's dividends in 3 years as they are not expected to pay a notable one for Singapore.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Long Jong Chang (59yo)

2.3yrs

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

2.0yrs

Average Tenure

56yo

Average Age

The tenure for the mm2 Asia management team is about average.


Board Age and Tenure

3.7yrs

Average Tenure

58yo

Average Age

The tenure for the mm2 Asia board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Hock Seng Ong (51yo)

    Chief Corporate Development Officer & CEO of Cinema Operation

    • Tenure: 1.7yrs
  • Long Jong Chang (59yo)

    Group Chief Executive Officer

    • Tenure: 2.3yrs
  • Charles Yeo

    Managing Director of Vividthree

    • Tenure: 0.0yrs
  • Melvin Ang (56yo)

    Founder & Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: S$125.10k
  • Ng Say Yong (56yo)

    Chief Content Officer & MD of mm2 Singapore

    • Tenure: 0.0yrs
  • How Kiat Chong

    Chief Financial Officer

    • Tenure: 3.8yrs
  • Teck Hiong Chua

    Chief Executive Officer of mm2 View

    • Tenure: 0.0yrs
  • Leslie Ong

    CEO & Executive Director of UnUsUaL

    • Tenure: 0.0yrs
  • Jay Hong (40yo)

    Chief Technology Officer of Vividthree Productions

    • Tenure: 0.0yrs
  • Lissa Siau

    Company Secretary

    • Tenure: 1.8yrs

Board Members

  • Jack Chia (58yo)

    Independent Director

    • Tenure: 4.8yrs
  • Dennis Chia

    Non-Executive Director

    • Tenure: 2.0yrs
  • Melvin Ang (56yo)

    Founder & Executive Chairman

    • Tenure: 2.6yrs
    • Compensation: S$125.10k
  • Liang Pheng Tan (71yo)

    Lead Independent Director

    • Tenure: 2.6yrs
  • Terry Mak (61yo)

    Non-Executive Director

    • Tenure: 4.8yrs
  • Thomas Lei (56yo)

    Independent Director

    • Tenure: 4.8yrs

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$216.282m
  • 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 Analysis2019/08/19 12:56
End of Day Share Price2019/08/19 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.