December 5, 2019

We expect the company to secure more new concerts with renowned Cantopop artists for 2020, as well as more well-known family entertainment shows in the near future to further build on its 2020 pipeline. Historically, on its family entertainment side, UnUsUaL has worked with Disney on multiple projects and presented 48 Disney on Ice shows in South Korea and Taiwan. We believe the company will likely continue to expand its scope with Disney to promote more of their titles in Asia, especially in 2021. We also expect it to continue to explore tie-ups and JVs to further expand its concert business globally, especially in the Western markets.

3QFY20F should see revenue from a 2-night concert of JJ Lin at a much larger national stadium venue – four times the capacity of his 2018 concert, which has been fully soldout. UnUsUaL also has upcoming concerts for JJ Lin in Macau/Hong Kong, Malaysia/Taiwan, and Australia, of which the company plans to host at a larger venue in Sydney in Mar 2020. Management is also in the midst of adding concerts for other artistes, which should further boost its pipeline.

Despite UnUsUaL being the market leader in Singapore, it is looking to acquire similar businesses in Malaysia and Taiwan ie similar firms with good track record, profitable, and accretive to it immediately. The company is also trading at a much lower multiple compared to larger global peers, which makes it an attractive target – especially to peers in HK/China that want an immediate foothold in South-East Asia and still be accretive to their valuations. Key risks include cancellation/postponement of concerts, accidents, and departure of key employees.

UnUsUaL reported strong 2QFY20 (Mar) results, with revenue surging 57.5% YoY and PATMI rising 54.8% YoY to SGD5m. Due to the stronger pipeline of events in 3QFY20F and expectation of more potential positive development in the concert and family entertainment space, we believe the company will see strong growth in FY20F. Maintain BUY and SGD0.42 TP, 56% upside. – RHB

Closing Price: SGD0.28