Brokers' take

mm2 Asia | Buy Target price: S$0.57 Nov 20 close: S$0.345 Maybank Kim Eng, Nov 19

We maintain our forecasts for mm2 Asia with a 1 times PEG (price-to-earnings growth)-based target price of S$0.57 and "buy" as management has indicated continued improvements in its cinema business. A strong production pipeline, including Netflix work, should contribute by Q4. Any production delays or cost overruns are key risks to our outlook. mm2 Asia's year-on-year growth is driven by its Cathay Cineleisure cinema acquisition and quarter-on-quarter growth by concert and event production.

Management outlined a healthy core production pipeline, up y-o-y to about 80 from 50. This is inclusive of recently announced production work for Netflix's 2019 Asia programming. Its Netflix relationship took two years to build. More B2B deals similar to Netflix's are expected. Its concert and event production business is expected to scale up further.