SINGAPORE (Aug 16): RHB is maintaining its “buy” call on Spackman Entertainment with a target price of 23 cents following the group’s acquisition of Take Pictures, a startup film production company founded by veteran movie producer, Song Dae-Chan.

See: Spackman in discussions to acquire Korean film production company

Take Pictures has developed a strong lineup of 10 film projects, including The Priests 2, which was co-produced with Zip Cinema, an indirect, wholly owned subsidiary of Spackman.

The movie, Golden Slumber, starring several A-list Korean artistes is close to being completed and will be hitting the big screen by 2H17.

This movie will also be produced by Zip Cinema and distributed by CJ Entertainment.

In a Wednesday report, analyst Jarick Seet says, “With Spackman’s proven track record, we expect this movie to be profitable. We also conservatively estimate 4 million ticket admissions for this movie, which would likely yield a profit of US$2.6 million for Spackman.”

The management also says it is reviewing future acquisition opportunities and has plans to reshape its business model to diversify its revenue stream, while also aggressively pursuing new acquisitions that will contribute to a consistent revenue stream, relying less on the box office performance of its movies.

Shares in Spackman Entertainment are trading at 10 cents as at 9.45am.