The return of concerts is music to GHY Culture & Media’s ears, though the outlook remains challenging for the entertainment production company, says DBS Group Research analyst Ling Lee Keng.
In an Aug 19 note, Ling is maintaining “hold” on GHY with a lower target price of 43 cents from 45 cents previously. The new target price represents a 9% downside.
GHY’s 1HFY2022 ended June results slipped into the red with a net loss of $1.8 million from a net profit of $3.4 million in 1HFY2021, mainly due to foreign exchange losses and delays in signing contracts, says Ling. “Though the outlook could still be challenging given China’s zero-Covid-19 policy with tight pandemic control measures, the resumption of concert production would help to boost the overall performance.”