DBS: GHY Culture & Media Holding Co Ltd – Hold Target Price $0.45
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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.
