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Brokers’ take

This article is more than 12 months old

Compiled by Leila Lai


SEPT 17 CLOSE: $0.28


RHB Research, Sept 17

Initiate with a "buy" with 42-cent target price, 50 per cent upside.

UnUsUaL is an Asian concert promotion and event production leader.

It has grown since listing into an entity with FY19 earnings of $13.2 million. Given more entertainment opportunities ahead, this should help grow a conservative FY20F-22F net profit after tax compound annual growth rate of 20 per cent.

Its share price has also corrected significantly to a reasonable valuation.

Consequently, we initiate coverage on a rare local firm that can still deliver high growth over the next 2-3 years.

UnUsUaL has a scalable business model. It can leverage on strong relationships with various artistes, and is able to host concerts in various venues globally, especially China.

Despite a weak Q1 2020, the company is likely to enjoy a strong Q2 2020F, and an even stronger Q3 2020F due to the pipeline ahead. UnUsUaL also has upcoming concerts for JJ Lin in Macau/Hong Kong, Malaysia/Taiwan and Australia, with the company planning to add more shows in Sydney and Melbourne. Management is also in the midst of adding concerts for other artistes, which should further boost its pipeline.

The group is looking to acquire similar businesses in Malaysia and Taiwan, in other words, similar firms with good track record, profitable and accretive to it immediately.

UnUsUaL is also trading at a much lower multiple when compared with larger global peers, which makes it an attractive target.



UOB Kay Hian Research, Sept 17

August proved to be a month in which private home-buying sentiment remained robust on a year-on-year basis.

As a result, we do not believe that the Government will look at demand-side policy easing in the near to medium term, especially given that the next general elections is likely to take place in the next six months.

We have lowered our rating on the property sector to "market weight" as Singapore property developers appear to be trading at fair price/book valuations at present.

The strength in August's data, with 1,122 units sold and only a mild 4.8 per cent month-on-month decline (despite August being the Hungry Ghost month), indicates that buyers remain sanguine about Singapore's gross domestic product slowdown and US-China trade tensions.

We do not believe the Hong Kong protests affected these numbers, though it remains to be seen if there is any uplift from the current month onwards.

We also highlight that the Government has announced changes to grants and incentives for Housing Board resale flats, thus potentially resulting in stronger demand from HDB owners wanting to upgrade to private homes.

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.