Results First Take: 1H22 in the red, dragged by forex loss; below expectations
- 1H22 revenue declined 53% y-o-y mainly due to a decrease in number of drama production
- Net loss of S$1.8m, attributable to forex loss and delay in contract signings
- Positive developments: Resumption of concert production business with upcoming concerts in FY22 and FY23
- We currently have a HOLD call with TP of S$0.45. More updates after briefing next week
- 1H22 revenue declined 53% y-o-y, to S$20.6m, mainly due to :-
- decrease in revenue contribution from the TV Program and Film Production business segment. In 1H22, the Group recognised revenue mainly in respect of three completed dramas and sale of a script.
- decrease in revenue contribution from the Others business segment mainly comprising Talent Management and Costumes, Props and Make-up Services, as a result of a decrease in number of projects
- Gross profit margin of 24.3% for 1H22 is lower than the 28.2% for 1H21, mainly due to COVID-19 related expenses.
- GHY reported a net loss of S$1.8m, vs a profit of S$3.4m in 1H21. This was attributable to :-
- foreign exchange loss of S$2.7m due to the appreciation of Singapore Dollar against Chinese Renminbi arising from the group’s significant operations in China. The group would have posted a net profit of S$0.9m for 1H22, excluding the forex loss.
- Delay in contract signings with customers in 1H22 due to tightened COVID-19 measures in China
- Positive developments: Resumption of concert production business with upcoming concerts in FY22 and FY23
- Sold out tickets for Jay Chou’s concerts to be held in Singapore and Malaysia in FY22 and January 2023, with ticket sales for Australia expected to commence in 3Q22
- Co-producer of concerts to be performed by well-known artistes, Guns N’ Roses and Power Station (????) to be held in FY22, to capture the pent-up concert demand
- We have not factored in the contribution from the concert production business. Will provide more updates and review our forecasts after the results briefing next Thursday, 18 August.
- We currently have a HOLD call with TP of S$0.45.