MAYBANK Kim Eng has downgraded its recommendation of mm2 Asia to"hold" as optimism over the performance of mm2-produced movie More Than Blue and another tie up with Fox Networks Group Asia has been priced in.
Maybank Kim Eng analyst Luis Hilado noted that by focusing on production instead of film investments, mm2's core production business is insulated from volatility.Moreover, long-term positives for the company are likely to surface as it builds a reputation as a hit-making producer.Therefore, mm2 should continue to bag future production work from regional or global players as evidenced by recent production deals with Netflix and Fox, Mr Hilado added.
That said, there could be big-screen content risks due to changing viewer habits towards streaming platforms. Therefore, producing more content for such platforms could be essential to mm2, Maybank Kim Eng said.