Can Jay Chou Save GHY Culture and Media in FY2023?

If you are an investor interested in the media industry, you should consider GHY Culture and Media (SGX: XJB), which produces numerous dramas and films in countries like China, Singapore, and Malaysia. GHY's content is also featured on major video streaming platforms and TV networks in China. Additionally, the group has organized concerts for international artists in Singapore, Malaysia, and Australia.

GHY's business comprises three main segments:

1. TV Program and Film Production
2. Costumes, Props, and Make-up Services and Talent Management Services
3. Concert Production

The most profitable and revenue-generating segment in 2022 was concert production. The company co-produced concerts for Power Station and Guns N' Roses in Singapore, and organized Jay Chou's Carnival World Tour (Singapore) concerts at the Singapore National Stadium on December 17 and 18, 2022. 

Jay's Concert Poster. Source: GHY Website

These events alone brought in S$20 million in revenue and over S$8 million in gross profit, accounting for over 40% of GHY's total revenue in 2022.

Source: GHY FY2022 Annual Report

Among Power Station, Guns N' Roses, and Jay Chou, it's likely that Jay Chou's sold-out concert in Singapore contributed the most to GHY's success in 2022. In 2023, the company is expected to recognize revenue from Jay Chou's concerts in Malaysia and Australia. 

(Interestingly, Jay's mother and manager has a 7.1% ownership in GHY....)

Apart from concerts, GHY has also profited from producing dramas. In a DBS Report, it was projected that the company would release 3 to 4 dramas in 2023, potentially boosting its revenue and profitability profile. In 2021, drama production was the key driver of GHY's profitability.

Source: GHY FY2022 Annual Report

Recently, GHY acquired Iskandar Malaysia Studios, a facility that played a role in producing the reality TV series "Asia's Got Talent" and the hit Hollywood film "Crazy Rich Asians." This acquisition could further enhance GHY's position in the media and entertainment industry, making it an attractive investment opportunity!

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