mm2 Asia

Broker: CIMB

Call: Buy

Target price: 60 Singapore cents

Unusual Productions, 51 per cent owned by mm2, has overseen more than 150 large-scale live concerts and 200 events to date, and plans to double its existing 12-15 shows a year in Singapore as it enters other markets like Malaysia, Hong Kong and even second-tier Chinese cities that can command bigger budgets.

Apart from geographical expansion, Unusual is also keen to target downstream services such as ticketing platforms and venue management.

Mm2 recently announced its partnership with StarHub and Astro to produce Singapore/Malaysia versions of The Voice, with an estimated $5 million budget. The fourth instalment of movie franchise Ah Boys To Men is also scheduled for filming by the fourth quarter of this year.

While mm2's initial stake in Unusual will be diluted to 41.9 per cent upon an upcoming spin-off, the $17.4 million net IPO proceeds raised via a separate listing platform will set Unusual on a stronger growth trajectory.

Growth estimates for financial year 2018-2019 have been revised 6 to 14 per cent to account for higher earnings contribution from Unusual.

SINGAPORE MYANMAR INVESTCO

Broker: OCBC Investment Research Call: Buy

Target price: 97 Singapore cents

Singapore Myanmar Investco (SMI) announced last week that it will start retail and food and beverage operations at Junction City, the latest high-end integrated development in Yangon, Myanmar.

With a five-year lease, SMI targets to open up to 10 retail brands and F&B concepts, featuring brands like Coach, Pandora, Furla, Benetton, as well as Crystal Jade Kitchen and Ippudo.

This development rides on the country's rising trends in consumer spending as well as international tourism.

In addition, SMI continues to hold a dominant position in airport duty-free retail at Yangon International Airport's new terminal, and we understand that the duty-free business has been growing well since the inception of most stores in early September last year.

Led by a strong management team, against a backdrop of a high-growth economy, SMI is attractively positioned for growth.