Still not too worried, trade receivables past due as a proportion of total receivables generally hover around 15% (2010;14.5% 2009; 6.8% 2008 14.7%, 2007; 23.4%. 2006; 16%).
must say i am concerned. While the receivables past 90 days has doubled, revenue is at the same level. These receivables although not impaired, are also unsecured. For another sense of dimension, this could effectively wipe out dividends for 2010 if unrecovered.
Unfortunately i will not be able to attend this AGM. Now that another 4+ months have passed, it would be useful to hear what's the current status of those receivables.
Actually the receivables outstanding for Universal Studios has been an issue for a few quarters now. Income & sales have already been recognized. The thing to watch is trade or all receivables vs sales rather than how the company allocates between trade & other receivables.
While we don't expect that Universal Studios be unable to pay, it shows that customers, particularly the large ones may have significant bargaining power over Kingsmen, and reminds us that businesses based on projects are not as good as those from consumables.
While ROE is quite high, the FCF part of it is lumpy (which means a bit less valuable), and its sustainability over the long term should be examined very closely, i.e. tied to growth of retail development in Asia which in mid-term can be quite vulnerable to speed bumps.
(20-04-2011, 10:15 PM)redcorolla95 Wrote: [ -> ]Actually the receivables outstanding for Universal Studios has been an issue for a few quarters now. Income & sales have already been recognized. The thing to watch is trade or all receivables vs sales rather than how the company allocates between trade & other receivables.
While we don't expect that Universal Studios be unable to pay, it shows that customers, particularly the large ones may have significant bargaining power over Kingsmen, and reminds us that businesses based on projects are not as good as those from consumables.
While ROE is quite high, the FCF part of it is lumpy (which means a bit less valuable), and its sustainability over the long term should be examined very closely, i.e. tied to growth of retail development in Asia which in mid-term can be quite vulnerable to speed bumps.
Hi thanks! Very insightful comments, and they have been duly noted. Will bring this issue up at the AGM if I have the chance, or at least discuss it with the CFO/Finance Director.
Thus far the FCF looks sustainable in the last 5 years, but I agree we should focus more on the future rather than the past. Just for info, I did bring up this point during my phone conversation with Andrew Cheng and he mentioned that Kingsmen traditionally enjoys very strong FCF.
Hi Taka, I just got my annual report and the pages are missing from the annual report too! Argh.
As I am currently overseas, any idea how do I get them to send me another copy?
I thought I was the only one.. Haha.. I got company..
You can email Andrew Cheng, the IR contact, to send you another copy. I will PM u his email add.
Looks like giving dividends is a really good for publicity.
Excerpt from DBSV Singapore Market Focus
"In our continuous hunt for small cap winners, we have identified seven under-researched companies with interesting themes worth exploring....
4. Kingsmen, a leading regional communications design and production house. The company is expected to benefit from the increase in MICE events in Singapore. The Group has also continued to generate strong cash flows and current dividend yield is attractive at >6%."
(26-04-2011, 12:23 PM)piggo Wrote: [ -> ]Looks like giving dividends is a really good for publicity.
Oh well, everyone these days is harping about the Hyflux 6% CPS. Doesn't make Kingsmen's 6% yield look very unusual, eh?
Hey Musicwhiz, I've finished reading your blog on Kingsmen. Thank you very much for the analysis!
Any idea why Kingsmen's net profit is flat for 2008 to 2010? (about 14m per year) Thanks!
I'd say it's due to higher staff costs and probably also due to their overseas expansion and beefing up of their North Asia operations.
Will try to find out more at the AGM.
Thanks.