Deep Dive into a Leading Event Production Company in Asia

Established in 1997, Unusual Limited (“UnUsUal”) started as a business specialising in the rental of staging, audio and lighting equipment. With a track record of over 20 years, it has grown to be one of the leading names in Asia, specialising in the production and promotion of large-scale live events and concerts by Asian and International artistes.

Its presence in the region is represented by Unusual Entertainment, Unusual Productions, Unusual Development in Singapore, Unusual Productions in Malaysia, Unusual Entertainment International in Hong Kong, Unusual Development Taiwan Branch in Taiwan and Unusual Culture Development in Shanghai, China.

Key Statistics

Past Financial Performance

For FY2021, UnUsUal’s revenue essentially evaporated,crashing more than 90% year-on-year to just S$1.34 million. The sharp decline was mainly due to the negative impact of COVID-19 on the Group’s businesses which led to the deferment of most of the Group’s projects such as concerts and large-scale events to reduce the spread of COVID-19.

With the sharp top-line decline, UnUsUal slipped into the red with a loss after tax of S$9.73 million, as compared to a profit after tax of S$6.34 million a year earlier. The losses were partially mitigated by the extensive government grants and lower administrative and finance expenses.

Ownership

The largest shareholder for UnUsUal belongs to mm2 Asia Limited, which has a 76.8% stake in the company. mm2 Asia Limited is a Singapore-based company that operates businesses across the content, immersive media, cinema, event and concert industries. The Company operates through various segments, including Core Business, Post and content production, Cinema operations and Concert and event.

The 2nd largest shareholder for UnUsUal belongs to Singapore Press Holdings Limited, which has a 4.99% stake in the company. Singapore Press Holdings Limited is a media company. The Company's businesses include newspapers, magazines, book publishing, online, properties, events/outdoor, radio, student accommodation and healthcare sector.

Another notable shareholder includes Mr. Leslie Ong Chin Soon, who has a 3.33% stake in the company. He is the current Chief Executive Officer and Executive Director of UnUsUal.

Technical Analysis

Based on the weekly chart for UnUsUal, its share price has been consolidating between August 2020 and November 2020. This can be seen from the tightening of the Bollinger Band. Subsequently, its share price experienced a breakout, accompanied by high trading volume and the MACD line punching above zero. This is a sign of a bullish setup.

By Mid-January 2021, UnUsual’s share price experienced some profit taking, but was able to rebound from the 20-Day Moving Average. Meanwhile, another strong breakout occurred in March 2021, whereby it displayed a bullish candlestick and breaching the upper limit of the Bollinger Band.

Since then, UnUnUsal’s share price has been trending lower, given the decreasing volume, MACD line and the share price is trading below the 20-Day Moving Average.

In the latest trading week, it shows a long wick candlestick, which indicates strong support and the potential turnaround in the share price’s trend. Furthermore, the candlestick pattern highlights that its share price is trying to build a bottom, pending for a potential reversal.

Lastly, the next resistance level will be around S$0.18, which is the 20-Day Moving Average. On the other hand, investors will have to take note if its share price continued to breach the lower limit of the Bollinger Band, which could indicate further weakness in the share price.

Conclusion & Management Outlook

To conclude, UnUsUal has suffered a drastic downturn in terms of its financial performance for FY2021, due to the current COVID-19 pandemic. With the successful vaccination drive across the region and gradual re-opening of the economies in Asia, investors can keep a lookout for any potential improvement to its earnings.

In terms of management outlook, Chief Executive Officer of UnUsUaL Limited, Mr. Leslie Ong said:

“We need to adapt to the new norm, rethink and remodel traditional ways of doing business, and rapidly pivoting to meet the needs of our audiences. The Group has established a JV with JFJ Production to produce Live Virtual Concerts, this will provide us with an extra revenue stream.

Our team is looking forward to roll out our pending projects once we have the opportunity; Especially now that China has started to host high-capacity concerts and events after their covid-19 cases have dropped significantly. It is important for us to continue to maintain close relationships with our partners, artistes and their managers while we work towards re-emerging larger scale live concerts and events.”

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