mm2 Asia started at ‘add’ by CIMB with 70cents target

SINGAPORE (May 10): CIMB Research is initiating coverage of film/TV production company mm2 Asia with an “add” recommendation and target price of 70 cents, saying the company is poised to ride the rise of China’s film business.

“We believe mm2 is able to capitalise on its close ties with these established industry players. Not only is China an attractive market due to booming end-consumer demand, but also because of bigger production budgets and wider audience reach,” say lead analyst Ngoh Yi Sin in a Monday note.

Ngoh expects a growing production pipeline -- from a total budget of $11.5 million in FY15 to FY16’s $23 million and FY17’s $44 million -- to be the key revenue driver for mm2.

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