UNUSUAL LIMITED (SGX:1D1)
UnUsUaL - Cease Coverage
- Due to reallocation of resources, we are ceasing coverage on UnUsUaL (SGX:1D1).
- In 1HFY22 (ended 30 Sep), UnUsUaL’s net loss halved from S$3.4m to S$1.6m, despite a decline in revenue from S$1.1m to S$0.4m, and lower government grant of S$0.2m (1H21:S$0.3m).
Operating environment remains challenging since March 2020.
- Authority-mandated COVID tests, restrictions on the size of the audience and border restrictions inhibited the roll-out of large-scale live events and concerts. Border restrictions also limit the movements of performing artistes and foreign audiences that travel cross-border to watch these events.
- To overcome the physical limitations, 50%-owned Isotope Productions staged an online concert live-streamed by artiste JJ Lin in July, the first Asian artiste to do so, which reaped S$0.6m for UnUsUaL.
- Many live event contracts have been put on hold since COVID hit. UnUsUaL booked in its balance sheet
- S$26.1m costs incurred for these suspended projects, and
- S$30m trade and other receivables that relates to milestone receipts.
- When the suspended projects are staged, the former could be recognized as income and the latter could be collected.
- UnUsUaL's net debt stood at S$15.8m as at 30 Sep, an increase from the S$15.0m in FY21 (Y/E 31 Mar). UnUsUaL's net gearing is 32.8%, up from 30.3% in FY21.
Earnings outlook is improving with more economies and borders reopening.
- UnUsUaL announced an upcoming show Boom Boom Room that runs from 24 Nov to 19 Dec. It is also presenting a series of 54 concerts by Angela Zhang and Kelly Yu in collaboration with IMC Live Global, a small and cautious step towards earnings recovery.
- See
Lim Li Jun Tracy
SAC Capital Research
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https://www.saccapital.com.sg/
2021-11-16
SGX Stock
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