SINGAPORE (May 19): CIMB is keeping mm2 Asia at “add” with an unchanged 70 cents target price as the film and TV production company dips its toes into the US market.

The company is set to embark on its first US co-production, “Good Match”, which is scheduled to begin production in July 2016 and be released in 2017.

“If successful, this may pave the way for bigger productions with international production studios,” says CIMB lead analyst Ngoh Yi Sin in a Wednesday report.

mm2 this week announced it acquired shared distribution rights with Clover Films to distribute 19 movies in Singapore and Malaysia for FY2017 to March.

(See more: Mm2 Asia acquires rights to distribution of 19 movies)

It also recently signed a partnership agreement worth up to $8 million with Media Development Authority of Singapore (MDA) to develop local Chinese language scriptwriters under a three-year programme, Ngoh points out.

In March, a 9.05% stake in the company was acquired by Singapore telco StarHub for $18.04 million. (See more: StarHub takes 9% stake in film production firm mm2 Asia)

“Potential catalyst for the stock is stronger traction in movie production in the US and other international markets,” Ngoh says.

mm2 Asia closed 1.8% lower at 56 cents.