ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Straco Corporation
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
INCORPORATION OF A SUBSIDIARY

The Board of Directors of Straco Corporation Limited (“the Company”) wishes to
announce that on l August 2014, the Company has incorporated a wholly-owned
subsidiary, Bay Attractions Pte. Ltd. (“Bay Attractions”).

Bay Attractions is incorporated in Singapore
with an issued and paid-up capital of
S$1/-.The main activities of Bay Attractions will be that of an investment holding
company.

That above investment is funded by internal resources and is not expected to have any
material effect on the net tangible assets per share or earnings per share of the
Company for the financial year ending 31 December 2014.

None of the directors or substantial shareholders of the Company has an interest, direct
or indirect in the above investment.

http://infopub.sgx.com/FileOpen/Straco-I...eID=307893

1) This could be related to the $20 million tender reported last year for a distressed project worth over $100 million as highlighted by CIMB report.

2) Bay Attractions hmmm Wink

3) Straco hits new record high of 83.5 cents today.

(Vested)
If its the flyer that they are looking at, then they may have their work cut unless they vulture the project at say $0.30 to $1.00 but anyway some recent history:

Not Vested
GG

http://www.straitstimes.com/news/singapo...t-one-year

http://www.todayonline.com/singapore/sin...s-collapse

Singapore Flyer’s woes take a new spin after Merlin talks collapse
Singapore Flyer’s woes take a new spin after Merlin talks collapse
Singapore Flyer seen from Marina Barrage, 06 May 2014. Photo: Don Wong
STB says discussions are still ongoing with stakeholders but does not confirm if there is another potential buyer
BY
TAN WEIZHEN
tanweizhen@mediacorp.com.sgPUBLISHED: 4:14 AM, MAY 8, 2014(PAGE 1 OF 1) - PAGINATE
SINGAPORE — Almost a year has passed since the troubled Singapore Flyer was placed under receivership, but its fate is now left hanging after Merlin Entertainments, the British firm behind the iconic London Eye and LegoLand theme parks, abandoned talks to acquire the S$240-million attraction.

TODAY has learnt that 10 months after discussions between Merlin and receiver Ferrier Hodgson were reported to have first begun, talks between the two parties have broken down.

Details on why the discussions stopped are scarce; Merlin chief executive officer Nick Varney was reported as recently as February as saying the British firm hoped to buy the attraction out of administration within two months.

When approached by TODAY for comment on the talks breaking down, a Merlin spokesman said: “We are no longer in talks regarding the Flyer. We were contacted by the receiver during the course of their process last year. However, we have no plans related to the Singapore Flyer at this time.”

However, a lifeline could still be on the horizon for the attraction, whose disgruntled tenants say they have been left to face a ghost town.

The Singapore Tourism Board —which owns the land it sits on — told TODAY this week discussions are still ongoing with stakeholders. It declined to confirm if the talks were with another potential buyer.

“The STB has been closely engaging the various parties involved to ensure the best possible outcome that enhances the tourism sector. As discussions are still ongoing, we are unable to share further details,” a spokesperson said.

Ferrier Hodgson partner Tim Reid also told TODAY an announcement would be made soon, but he declined to comment on Merlin’s pull-out.

As TODAY reported last July, Merlin was considering buying the Flyer to expand its presence in Asia and had started discussions with the receiver.

Five months later in December, Merlin said talks were still ongoing as it announced plans to open a Madame Tussauds wax museum on Sentosa.

Ferrier Hodgson on its part said it had received interest from several parties and was reviewing the offers.

At 165m, it was the world’s tallest Ferris wheel until March, when the 167.6m High Roller opened in Las Vegas. Plagued by poor attendance, the Flyer was placed under receivership at the end of May last year for failing to meet financial obligations to banks, just five years after it was launched to great fanfare.

Dr Michael Chiam, a senior lecturer of tourism at Ngee Ann Polytechnic, said that for it to appeal to potential buyers, it needs to be reinvented as part of a larger cluster of attractions.

“Right now, it is a standalone attraction. If it is to be viable, it must be a product that is attractive to both locals and tourists. We have to reprogramme it, make it more innovative. Perhaps the STB could facilitate the redevelopment of the attraction, make it a larger offering,” he said.

When TODAY visited the Flyer on Tuesday, the shops were half empty. Over about two hours, three waves of tourists arrived in buses.

Vendors at the Flyer estimate that about 90 per cent of the crowd there are tourists, but lamented that large tour groups on tight schedules limit the amount of time for shopping, and that any income from tourists visiting the ride barely trickles down to them.

Further aggravating matters, promotional efforts by its management slowed down after the attraction entered receivership, hitting sales even harder, they said.

“Business here has not been good, but these few months it has been worse,” said Mr Quek Ing Hoe, a manager at luxury handbag store NanKai.

Another tenant, Mr Tan Kiam Hua, the 55-year-old owner of Satay Bee Hoon stall at Food Trail, said he is one of the three original tenants left at the local-themed food court as the rest have moved away because they could not make enough money.

The Flyer needs to be promoted as an entire attraction, and not just a ride, the vendors emphasised.

However, even if it were to secure a new owner soon, the challenges are aplenty.

“The Singapore Flyer is a very old attraction … It’s been in the market for more than five years. (Tourists) don’t find it that interesting because it’s very much (like being) enclosed in a capsule for over 30 minutes,” said Mr Bernard Yu, head of SingExpress Travel’s inbound department.

Similarly at SH Tours, assistant general manager Catherine Khng said: “It’s not that popular any more. It’s rather slow for us. I think the demand for Flyer is not there now.”
Straco just released Q2 result - very good topline grow. Growth in bottomline impacted by admin expenses. Relatively huge downwards adjustment for reporting currency translation in 1H, resulted in big 40% drop in comprehensive income.

At current price of $0.82, PE around 20, which is way overvalue! Book value at all time high of 4.5! Assuming dividend rate is maintained, the yield depressed to ~2.4%.

Personally, I believe a correction on share price will just be around the corner. Not vested.
http://www.businesstimes.com.sg/premium/...4-20140813

PUBLISHED AUGUST 13, 2014
Straco Q2 profit up 7.4%
BYNISHA RAMCHANDANI
nishar@sph.com.sg @Nisha_BT

TOURIST attractions developer Straco Corp registered a 7.4 per cent year-on-year rise in net profit to S$8.33 million for the second quarter ended June 30, 2014, as revenue grew at a double-digit clip.
Revenue jumped 20.1 per cent to S$19.67 million on the back of double-digit growth in visitorship at its two aquariums in China. Earnings per share for the quarter worked out to 0.98 Singapore cent, up from 0.92 Singapore cent for the corresponding quarter a year prior.
For the quarter under review, combined visitor numbers to Shanghai Ocean Aquarium and Underwater World Xiamen grew 22.4 per cent to 840,000.
Meanwhile, administrative expenses increased 142.4 per cent to S$3.22 million due to a foreign exchange loss of S$396,000 recorded in the quarter as the Chinese renminbi weakened against the Singapore dollar (SGD). In contrast, there was an exchange gain of S$1.15 million recorded in 2Q13 when the renminbi strengthened against the SGD.
As per published by Business Times Online today:

Straco set to announce Singapore Flyer acquisition
BYCAI HAOXIANG
haoxiang@sph.com.sg

Mainboard-listed tourism operator Straco Corporation could be getting ready to announce its acquisition of the Singapore Flyer, The Business Times understands. The company called for a trading halt of its shares at 5.31pm on Wednesday. The firm was among the frontrunners to buy the iconic Ferris wheel by the Esplanade. The company behind the S$240 million wheel was placed under receivership last May. Straco currently runs two aquariums and a mountain cable car service in China. Its shares have surged 157 per cent from a year ago. Straco last closed at 82 cents, near a historical high.
what is so good about the Flyer that will cause every one on Earth to flock to see it?

(27-08-2014, 07:22 PM)value:search Wrote: [ -> ]As per published by Business Times Online today:

Straco set to announce Singapore Flyer acquisition
BYCAI HAOXIANG
haoxiang@sph.com.sg

Mainboard-listed tourism operator Straco Corporation could be getting ready to announce its acquisition of the Singapore Flyer, The Business Times understands. The company called for a trading halt of its shares at 5.31pm on Wednesday. The firm was among the frontrunners to buy the iconic Ferris wheel by the Esplanade. The company behind the S$240 million wheel was placed under receivership last May. Straco currently runs two aquariums and a mountain cable car service in China. Its shares have surged 157 per cent from a year ago. Straco last closed at 82 cents, near a historical high.
Looks like the speculations turned out to be right ! A vulture deal it would seem. Looking forward to more details.

(Vested)
The owner of Zouk said he is prepared to spend $20 million to $30 million to build a new site for his iconic club at the Singapore Flyer, after being given more time to work out the move yesterday. - See more at: http://news.asiaone.com/news/singapore/z...6VOHL.dpuf

Possibly linked to this M&A ? It is a JV deal after all.
No more dividends....


Sent from my iPhone using Tapatalk
If it is zouk related, I think overall this should be a positive. Based on the previous rumor, straco would take 90% stake and zouk 10%. Probably he company will pay with a mix of cash and financing over a period of time.

Straco guidance is that the potential project will not be as profitable as Shanghai aquarium. That is understandable, given that previous flyer management failed to make profit here.

http://leechongmeng.wordpress.com/2014/0...ore-flyer/

I looked at straco ar2013, cash and cash equiv is at 103 million.

Which brings me to my next question: what happened to the china project bid mentioned at the last agm? Did it fall through? Or has it been forgotten?

I hope for those vested that this is more positive than negative. However, I am not so sure if it's good news.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35