CITYNEON HOLDINGS

CITYNEON HOLDINGS | BUY

MAY 3 CLOSE: $1.04

TARGET PRICE: $1.60

DBS, May 3

The acquisition of The Hunger Games – The Exhibition Intellectual Property rights (IP) comes with the right to acquire other IPs owned by Lionsgate. With this latest deal, Cityneon is now on a stronger and firmer growth path.

Together with the three existing IPs – Avengers, Transformers and Jurassic World – plus its traditional business, we continue to expect Cityneon to deliver explosive FY16-19F earnings per share compound annual growth rate of 172 per cent.

Trading at a low PE-to-growth ratio of just 0.2x forecast FY18 earnings, Cityneon is attractive to investors seeking unique ideas in the entertainment industry.

Potential catalysts are mergers and acquisitions, acquiring more IPs, expanding project pipeline, focus on higher-margin projects for the traditional business.

Educator Index

Archive

2018
August
July
June
May
April
March
February
January