GHY Culture & Media - Boost From Resumption Of Concerts

GHY Culture & Media - DBS Research 2022-08-19: Boost From Resumption Of Concerts

SGinvestors.io

Published: 2022-08-26 02:45 AM

GHY CULTURE&MEDIA HLDG CO LTD (SGX:XJB)

GHY Culture & Media (SGX:XJB)'s 1H22 revenue declined 53% y-o-y, to S$20.6m, mainly due to:
1. Decrease in revenue contribution from the TV programme and film production business segment. In 1H22, the group recognised revenue mainly in respect of three completed dramas and the sale of a script vs two ongoing dramas, one short video, and two films in 1H21.
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The gross profit margin of 24.3% for 1H22 is lower than the 28.2% for 1H21, mainly due to COVID-19-related expenses.
GHY Culture & Media reported a net loss of S$1.8m, vs a profit of S$3.4m in 1H21. This was attributable to:
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2. 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. Pipeline includes:
1. 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.
2. Co-producer of concerts with well-known artistes Guns N’ Roses and Power Station (动力火车) to be held in FY22, to capture the pent-up concert demand.
3. Expect resumption of concerts in China in 2023.
GHY Culture & Media is gradually shifting focus to short video production, riding on the success of its collaboration with Beijing Zitiao Network Technology, part of the ByteDance Group that operates Douyin (also known as TikTok). The group has completed three short videos in 1H22, and we can expect more productions going forward. We project 10 short videos for FY22F and 20 in FY23F. A short form video typically comprises about 20 to 30 episodes of at least 120 seconds each.