UnUsUaL - RHB Invest 2022-06-17: Expecting a Return To Profitability; NEUTRAL

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UNUSUAL LIMITED (SGX:1D1)

UnUsUaL - Expecting a Return To Profitability; NEUTRAL

• With the return of mass events and concerts, UnUsUaL (SGX:1D1)’s core business is finally operational – with several concerts in the pipeline featuring artistes like Eric Chou and, potentially, JJ-Lin, following the A-Lin concert on 28 May.
• We expect UnUsUaL to return to profitability in FY23F (Mar) and see stronger growth in the years ahead. However, as its valuation remains rich at this point, we maintain our call, for now. Maintain NEUTRAL on UnUsUaL with a DCF-based target price of S$0.14, 0% downside.

Return of mass events.

• At end-Mar 2022, the Singapore Government eased COVID-19 measures – among these, it approved the return of live performances, while further lifting capacity limitations at end-Apr 2022. This resulted in a resumption of concerts featuring artistes like A-Lin and Jay Chou, as well as large events. This relaxation of measures will greatly benefit UnUsUaL, since mass entertainment events comprises its core business, and Singapore remains one of its core markets.
• Our channel checks also revealed that large venues like the Singapore Indoor Stadium and Singapore National Stadium have been packed with bookings for the rest of the year, signalling a steady flow of upcoming events.

Strong line-up of concerts ahead.

• After the conclusion of A-Lin’s concert, UnUsUaL announced the return of Eric Chou’s Odyssey Journey concert slated for 10-11 Sep 2022. Tickets for 10 Sep are sold out, and the uptake for 11 Sep is strong as well.
• We expect UnUsUaL to organise more concerts in its pipeline including the possibility of securing JJ Lin, which will be a huge Malaysia and Australia.

Return to profitability expected.

• All in, we believe the worst is our valuation.
• See
  • UnUsUaL's Share Price,
  • UnUsUaL's Target Price,
  • UnUsUaL's Analyst Reports,
  • UnUsUaL's Dividend History,
  • UnUsUaL's Announcements,
  • UnUsUaL's Latest News.
• Using our in-house proprietary methodology, we derive an ESG score of 3.0, which is on par with the country median. As such, we apply a 0% discount/premium to our intrinsic value to derive our target price for UnUsUaL.

Jarick Seet RHB Securities Research | https://www.rhbinvest.com.sg/ 2022-06-17

SGX Stock Analyst Report NEUTRAL MAINTAIN BUY 0.140 SAME 0.140