1H21: Stay Tuned For A Better 2H.
GHY’s net profit declined to S$3.5m (-73% yoy) in 1H21. Excluding one-off adjustments as well as the concerts segment, 1H21 net earnings would have been down 14% yoy. Core drama revenue rose on a yoy basis; unfortunately, the effects of COVID-19 measures caused margins to dip. While concerts in 2021 appear to be unlikely with the emergence of the Delta variant, we think that there will likely be a strong pent-up demand once they are approved by the authorities. Maintain BUY with a slightly lower target price of S$1.05.