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mm2 Asia
17-10-2015, 03:24 PM,
Post: #21
Wink  RE: mm2 Asia
Broke & closed new 52 week high, uptrend!  Big Grin
UOB report also 84 ct call, swee la!

UOB KH analyst report PDF

This report was originally published on the Retail Market Monitor by UOBKayHian  on October 16, 2015.


MM2 Asia- Takeaways From Asian Gems Conference
(MM2 SP/NOT RATED/S$0.695)

Attractive PEG valuation. The group is trading attractively at 0.48x FY15 PEG. MM2’s earnings growth is likely to remain strong and this makes the stock an exceptional growth play.

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17-10-2015, 05:02 PM,
Post: #22
RE: mm2 Asia
This counter is probably another goreng kaki where mata closed both eyes and sleep again...

Let's wait and see...

No Vested Interests

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17-10-2015, 09:36 PM,
Post: #23
RE: mm2 Asia
The company is in movie/content production biz, which isn't a biz model with stable cash flow. The PE is close to 30, and IPOed recently around end 2014.

I am with GG. The selling point is on low PEG, with only very minimum track record? The expected growth must be more than 30% annually.

I don't see any merit, based on value investing perspective. Any one to enlighten me?

(not vested, and only spend minimum time on it)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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18-10-2015, 11:20 AM,
Post: #24
RE: mm2 Asia
"To broaden its revenue stream, mm2 has recently acquired five cinemas in Malaysia. The ownership of cinemas will provide a source of recurring income to the group and cost savings in the longer term. We value the company at 18x on FY Mar17 EPS, a 30% discount to peers, given its much smaller size. Based on this, we arrive at a fair value of $0.84. The stock is currently trading 14x FY17PE."

How come your PE is different from DBS one?

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18-10-2015, 02:32 PM,
Post: #25
RE: mm2 Asia
http://www.telegraph.co.uk/finance/pictu...me=3308964

Not to belittle local companies but they certainly have a long way to go in terms of reaching global status...

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18-10-2015, 02:44 PM, (This post was last modified: 18-10-2015, 02:49 PM by CY09. Edit Reason: Edits for emphasis )
Post: #26
RE: mm2 Asia
The beauty of the analyst report was "The stock is currently trading 14x FY17PE". Analyst are predicting that the EPS of mm2 Asia in 2 years time (FY17) will be 4.96 cents. Current EPS for FY 15 is 2.5 cents, hence UOB is projecting that earnings will double in 2 years. How realistic is UOB's projection? I say it is very unrealistic.

This year was a bumper year because of "ah boys to Men 3". Unfortunately, it was not a great show and I dare say the reason for it being the highest grossing was because a certain army organisation spent its "Cohesion budget" to encourage employees to watch it during the 3 weeks it was screened. Unless mm2 asia continues to produce defence related movies each year and in turn "enjoy the wastage of "cohesion budget"", I predict income will remain flat for FY 16 (probably for FY 17 as well)

The success of mm2 will be on the films it produces. As of now, I do not think we will see any wonderful production from Singapore studios

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18-10-2015, 07:41 PM,
Post: #27
RE: mm2 Asia
(18-10-2015, 11:20 AM)traderly Wrote: "To broaden its revenue stream, mm2 has recently acquired five cinemas in Malaysia. The ownership of cinemas will provide a source of recurring income to the group and cost savings in the longer term. We value the company at 18x on FY Mar17 EPS, a 30% discount to peers, given its much smaller size. Based on this, we arrive at a fair value of $0.84. The stock is currently trading 14x FY17PE."

How come your PE is different from DBS one?

I reckon CY09 has already given you the illustration of the differences. Both are valid, but from different perspective.

IMO, there is nothing wrong, for forward valuation, as we all bet for the company future, rather than the past. We need to differentiate historical valuation, and forward valuation, which carry different uncertainties (risk). A forward FY17PE of 14x, with current FY15PE of about 30x, means the next 2 years annual growth forecasted are about 40%, which is a very high expectation.

(sharing a view, on top of the good post from CY09)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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19-10-2015, 12:01 PM,
Post: #28
RE: mm2 Asia
ic. thanks for sharing. will assess further.
Read that the revenue streams are not just box though, so need to search comparables..

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19-10-2015, 05:08 PM,
Post: #29
RE: mm2 Asia
(19-10-2015, 12:01 PM)traderly Wrote: ic. thanks for sharing. will assess further.
Read that the revenue streams are not just box though, so need to search comparables..
You may wish to reference spackman as a comparison perspective to mm2.

http://www.valuebuddies.com/showthread.php?tid=5413

I am negative on production companies as andedoctal historical trend indicate more failures than successes, YMMV though.

Sent from my D5503 using Tapatalk

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20-10-2015, 11:37 AM,
Post: #30
RE: mm2 Asia
ok thanks !

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