With plans to rid debt, 'hold' mm2 Asia as the show must go on: DBS

With cinemas shut for most of the year and concerts at a standstill, media production company mm2 Asia is at an inflexion point. While DBS Group Research says mm2 Asia is on the path to recovery,  the company needs to execute plans to rid its debt and turn around post-Covid-19.

In a May 31 note, DBS Group Research analyst Ling Lee Keng is maintaining “hold” on the company with a lowered target price of 67 cents from 89 cents previously, representing a 12% upside. 

“mm2 Asia has proposed several initiatives to pare down its debt. These include the spin-off and listing of the cinema business, and merger of the cinema business with Golden Village cinemas in Singapore. With the strong recovery in 2HFY2021, we believe that the group is on the recovery path but the execution of these initiatives is key for the group to turn around,” notes Ling.