mm2 Asia Ltd. (1B0) AI Stock Analysis

• Market Cap: €19.61M
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -15.48%
• EPS Growth: -752.17%
• Country: SG
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 6,535,644,500
• 10 Day Avg. Volume: 834,680
• 30 Day Avg. Volume: 2,415,153
• PEG Ratio: >-0.01
• Price to Book (P/B): 8.61
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -2.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: S$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by high leverage and declining profitability. The lack of technical analysis data and poor valuation metrics further contribute to the low score.

mm2 Asia Ltd. Business Overview & Revenue Model

Company Description

mm2 Asia Ltd. produces, distributes, and sponsors films, television (TV), and online content in Singapore, Malaysia, Hong Kong, Taiwan, China, and internationally. The company operates through Content Business, Digital Entertainment Business, and Concert and Event Business segments. It produces and distributes motion picture, video, and television programme and sponsorship; provides visual effects and immersive media work services for films, commercials, and production of location-based entertainment; and management consultancy services, as well as communications and media relations solutions. The company also distributes content produced by third parties across various platforms, such as cinemas, Pay TV, Free TV, online, DVD, airlines, and others; offers content and platform solutions to advertisers; and manages and operates cinemas under the mmCineplexes brand name. In addition, it produces and promotes events and concerts for artists and showrunners; offers creative and technical solutions for events and concerts; engages in social media advertising activities; develops software for interactive digital media; and streams digital film and short-form content, as well as operates a café, dramatic arts, music, and other arts activities. Additionally, the company is involved in the events productions, concerts promotion, and rental of stage lighting, sound system, and equipment; installation of audio equipment and light system; operating online marketplace for goods; providing digital advertising and brand consultancy services; and organising and management of events. mm2 Asia Ltd. was founded in 2008 and is headquartered in Singapore.

How the Company Makes Money

mm2 Asia Ltd. generates revenue through several key streams, including film production and distribution, television broadcasting rights, and digital content monetization. The company produces films that are distributed to cinemas and streamed on various platforms, earning box office revenue and licensing fees. Additionally, mm2 generates income from the sale of broadcasting rights for its television content to local and international networks. The advent of digital media has also opened up new revenue opportunities for mm2, as the company partners with online streaming platforms to distribute its content, earning subscription fees and ad revenues. Partnerships with other media companies and platforms are crucial, as they facilitate broader distribution and enhance the company's visibility and market reach, contributing significantly to its overall earnings.

mm2 Asia Ltd. Financial Statement Overview

Summary

mm2 Asia Ltd. faces significant financial challenges, with high leverage, declining profitability, and cash flow constraints. The company has a negative net profit margin and high debt levels, posing risks to future stability and growth.

Income Statement

The company has experienced fluctuating revenue growth with a recent increase of 4.99%. However, profitability metrics are concerning, with a negative net profit margin of -63.72% and a negative EBIT margin of -61.47% for the latest year. The gross profit margin has also declined significantly from previous years, indicating pressure on cost management.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 36.41, indicating significant financial risk. Return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow metrics reveal challenges, with negative free cash flow growth and a very low operating cash flow to net income ratio. The free cash flow to net income ratio is also negative, highlighting cash flow difficulties relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.29M	165.13M	191.75M	133.41M	83.52M	75.23M
Gross Profit	37.92M	17.14M	50.41M	28.22M	8.76M	3.05M
EBITDA	17.21M	-90.05M	31.95M	19.21M	35.00M	-37.53M
Net Income	-12.52M	-105.23M	-5.65M	-119.72M	-34.98M	-90.78M
Balance Sheet
Total Assets	467.63M	354.63M	454.08M	425.84M	575.72M	623.81M
Cash, Cash Equivalents and Short-Term Investments	16.94M	11.26M	13.63M	13.94M	19.13M	36.66M
Total Debt	234.94M	218.21M	229.83M	231.86M	261.03M	341.33M
Total Liabilities	355.04M	330.00M	339.95M	337.70M	377.37M	449.60M
Stockholders Equity	69.02M	5.99M	72.56M	50.67M	158.53M	126.88M
Cash Flow
Free Cash Flow	-18.16M	-17.35M	494.00K	7.87M	18.50M	1.29M
Operating Cash Flow	-16.59M	569.00K	4.88M	8.88M	26.22M	2.15M
Investing Cash Flow	-1.05M	-18.03M	-3.90M	-1.25M	-5.50M	-9.06M
Financing Cash Flow	10.11M	17.32M	-2.12M	-12.28M	-17.89M	-10.21M

mm2 Asia Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
OMK	―	S$13.83M	-0.91	-142.58%	―	-44.14%	-414.29%
1B0	―	€19.61M	―	-260.23%	―	-15.48%	-752.17%

mm2 Asia Ltd. Corporate Events

mm2 Asia Faces Legal Claim Over Deed of Guarantee

mm2 Asia Ltd. has received an originating claim from HSBC Institutional Trust Services (Singapore) Limited, acting as Trustee of Frasers Centrepoint Trust, related to a deed of guarantee for its associated company, Cathay Cineplexes Pte. Ltd., which is under voluntary liquidation. The claim seeks a sum of over S$2.6 million, interest, damages, and costs, with the company currently seeking legal advice. This development could impact mm2 Asia’s financial obligations and stakeholder interests, prompting caution among shareholders and investors.

mm2 Asia Faces Debt Demand from Standard Chartered Bank

mm2 Asia Ltd., along with its associated companies mm Connect Pte. Ltd. and Cathay Cineplexes Pte. Ltd., has received letters of demand from Standard Chartered Bank for a debt of S$905,582.87. The company is seeking legal advice and monitoring the situation, advising shareholders and investors to exercise caution.

mm2 Asia Ltd. Initiates Liquidation of Associated Companies

mm2 Asia Ltd. has announced the creditors’ voluntary liquidation of its associated companies, MM2 Star Screen Sdn. Bhd. and MM2 Screen Management Sdn. Bhd., due to unsuccessful restructuring negotiations and financial challenges. The appointment of an interim liquidator marks a significant step in winding up these entities, with implications for stakeholders to exercise caution regarding the company’s securities.

mm2 Asia Ltd. Initiates Liquidation of Subsidiaries Amid Financial Challenges

mm2 Asia Ltd. has announced the appointment of an interim liquidator and the voluntary winding up of its associated companies, MM2 Star Screen Sdn. Bhd. and MM2 Screen Management Sdn. Bhd., due to unsuccessful negotiations with creditors and an unsustainable financial position. This decision reflects the company’s strategic move to address financial challenges within these subsidiaries, potentially impacting its operations and stakeholder interests.

mm2 Asia Faces Financial Demand from Super Bean

mm2 Asia Ltd.’s subsidiary, mm2 Entertainment Pte. Ltd., has received a letter of demand from Super Bean International Pte. Ltd. for an outstanding payment of S$97,500 plus interest related to an investment agreement. The company is currently negotiating with Super Bean to resolve the issue, and stakeholders are advised to exercise caution regarding their investments.

mm2 Asia Ltd. Subsidiary Faces Legal Claim Over Film Distribution Agreements

mm2 Asia Ltd. announced that its subsidiary, MM2 Star Screen Sdn. Bhd., has received a Writ of Summons and Statement of Claim from Antenna Entertainments Sdn. Bhd. in the High Court of Malaya. The claim involves a demand for payment of RM1,456,843.75 related to film distribution agreements, along with interest and legal costs. The board of MM2 Star Screen is currently seeking legal advice and intends to address the matter accordingly. The company advises shareholders and potential investors to exercise caution and consult professionals regarding their shares.

mm2 Asia Ltd. Settles Rental Dispute in Malaysia

mm2 Asia Ltd. announced that its subsidiary, MM2 Star Screen, has reached a settlement regarding a legal dispute over rental arrears with Hektar Real Estate Investment Trust in Malaysia. The settlement involves a structured repayment plan and the use of security deposits, with no expected material impact on the company’s financial results for the current year.

mm2 Asia Subsidiary Faces Legal Claim Over Film Distribution

mm2 Asia Ltd. announced that its subsidiary, MM2 Screen Management Sdn. Bhd., has received a Writ of Summons and Statement of Claim from Antenna Entertainments Sdn. Bhd. The claim, filed in the High Court of Malaya, seeks payment of RM1,259,609.71 related to film distribution agreements, along with interest and legal costs. The subsidiary is currently seeking legal advice and intends to respond accordingly. The company advises shareholders and investors to exercise caution and consult professionals regarding their shares.

mm2 Asia Subsidiaries Face Demand for Unpaid Disney Film Fees

mm2 Asia Ltd. announced that its subsidiaries, MM2 Star Screen Sdn. Bhd. and MM2 Screen Management Sdn. Bhd., received letters of demand from The Walt Disney Company for unpaid film license fees totaling over RM1.2 million. These fees are related to the exhibition of Disney films in cinemas operated by the group in Malaysia, and have been outstanding since November 2023. The company has not been showing Disney films since June 2024 and is currently seeking legal advice to resolve the issue.

MM2 Asia Ltd. Amends Terms of S$54 Million Exchangeable Bonds

MM2 Asia Ltd. has entered into a deed of amendment with bondholder Mr. Tan Boon Seng regarding the terms of its S$54 million exchangeable bonds issued in December 2022. This amendment, which has received the bondholder’s consent, signifies a strategic financial adjustment for the company, potentially impacting its financial operations and stakeholder interests.

mm2 Asia Ltd. Initiates Liquidation Process for Cathay Cineplexes

mm2 Asia Ltd. has announced the appointment of provisional liquidators for its associated company, Cathay Cineplexes Pte. Ltd. (CCPL), due to unresolved financial obligations and unsuccessful restructuring negotiations with creditors. The decision to proceed with a creditors’ voluntary liquidation reflects CCPL’s inability to continue as a going concern, impacting its operations and stakeholders. Meetings for CCPL’s members and creditors will be convened to discuss the liquidation process.

mm2 Asia Ltd. Announces Board and Committee Changes

mm2 Asia Ltd., a company incorporated in Singapore, has announced changes to its Board of Directors and Board Committees. Mr. Choo Kee Siong has resigned as Non-Executive and Non-Independent Director, and Dr. Tan Khee Giap has been appointed as a member of the Remuneration Committee. These changes reflect a shift in the company’s governance structure, potentially impacting its strategic direction and stakeholder engagement.

mm2 Asia Announces Leadership Changes Amid Cinema Business Challenges

mm2 Asia Ltd. has announced significant changes to its Board and leadership team as part of its strategic financial and operational restructuring efforts. The company is addressing challenges in its cinema business, exacerbated by the pandemic, by appointing Mr. Ang Chiang Meng as Chief Restructuring Officer to lead debt management and operational reorganization. Additionally, the CEO, Mr. Chang Long Jong, will retire, with Executive Chairman Mr. Melvin Ang stepping in as interim CEO while a search for a permanent successor is conducted. These changes aim to stabilize the company’s financial health and strengthen its market position.

mm2 Asia Faces Legal Claims Over Unpaid Cinema Leases

mm2 Asia Ltd.’s associated company, Cathay Cineplexes Pte. Ltd. (CCPL), has received an Originating Claim from Lendlease Retail Investments 3 Pte. Ltd. for outstanding rental payments related to its lease at JEM, amounting to approximately S$1.98 million, with additional interest charges. CCPL also received a letter of demand from Resorts Concept Pte Ltd for unpaid fees totaling S$577,235.58. The company is actively seeking legal advice and negotiating to resolve these financial obligations, which could impact its financial standing and stakeholder interests.

mm2 Asia Ltd Announces Key Leadership Changes

mm2 Asia Ltd has announced several changes to its board and executive team. Jack Chia Seng Hee will resign as Non-Executive and Non-Independent Director, and Dr Tan Khee Giap will replace him on the Audit Committee. Ang Chiang Meng will be appointed as Executive Director and Chief Restructuring Officer, while CEO Chang Long Jong will retire, with Melvin Ang Wee Chye assuming interim CEO duties. Additionally, Ng Say Yong will resign as Chief Content Officer. These changes reflect a strategic shift in leadership to navigate future challenges and opportunities.