(28-10-2011, 07:17 PM)dydx Wrote: [ -> ]Assuming it will cost an average $2.0m to fit out each new store, the planned 10 additional new Uniqlo stores in Singapore will potentially bring in approx. $20.0m in new revenue to Kingsmen over time, assuming Kingsmen continues to deliver good design and project management services, and Uniqlo likes what Kingsmen can deliver.
Hi dydx,
Am curious as to how you derived your ballpark figure of about $2 million to fit-out each Uniqlo store? As far as I am aware, Kingsmen has not disclosed individual contract amounts for specific clients, and not for each store per client either.
Maybe you can enlighten on your basis used for the $2.0 million?
Thank you.
Hey dydx, does Uniqlo award all projects to Kingsmen? I notice that these MNC usually award projects to multiple contractors. So Kingsmen may not have all the pie
(29-10-2011, 04:23 PM)Thriftville Wrote: [ -> ]Hey dydx, does Uniqlo award all projects to Kingsmen? I notice that these MNC usually award projects to multiple contractors. So Kingsmen may not have all the pie
Hi Thriftville,
Allow me to share my views.
I believe that for retailers, they would just select one fit-out specialist to fit-out all their stores in a particular country, as these projects/contracts are not large in amount per store. There are also clients which engage Kingsmen for their roll-out Management expertise in rolling out stores in multiple countries simultaneously.
I understand that only for the Museums and Exhibitions Division (which includes thematic/scenic works), the projects are much larger (e.g. F1 event, Universal Studios) and therefore parcels of work are awarded to various contractors (which means every company is able to grab a slice of the pie).
Thanks Mw for your reply!
The reason why I raise that question was because I notice that Coach bags engaged Stags to do their interior, instead of giving all projects to Kingsmen. Because of this incident, I kind of doubt if Kingsmen has the competitive advantage to lock in their customers. It may also show that other companies can also do the job very well.
Hope to hear your views!
(30-10-2011, 10:10 PM)Thriftville Wrote: [ -> ]The reason why I raise that question was because I notice that Coach bags engaged Stags to do their interior, instead of giving all projects to Kingsmen. Because of this incident, I kind of doubt if Kingsmen has the competitive advantage to lock in their customers. It may also show that other companies can also do the job very well.
Hi there,
To be honest, I am not sure about Coach's case and why they switched companies to do their fit-outs. Perhaps it may be better to raise this query with the IR through email or to call them to clarify?
Good potential future business for Kingsmen?
Business Times - 01 Nov 2011
MICE business frisky with more space, events
Industry players are upbeat that growth will continue into 2012
By NISHA RAMCHANDANI
(SINGAPORE) The Republic's push for a bigger slice of the meetings, incentive travel, conventions and exhibitions (MICE) pie is right on track as venues report brisk business this year with a fuller calendar of events.
Industry players are bullish that growth will continue into 2012 as additional space comes on stream, though some also caution that a sluggish economic environment could potentially dent budgets.
Integrated resort Marina Bay Sands (MBS) has booked nearly 2,400 events to date involving over one million participants since it opened its doors in April 2010.
'We're at nearly full capacity for the trade show space, and are breaking our own records for the conference floors. With foreign delegates travelling to attend events at Marina Bay Sands, we're seeing growing demand in our hotel as well as spillover benefits for other hotels,' said George Tanasijevich, president and chief executive officer of MBS.
The integrated resort (IR) is seeing events that are new to Singapore as well as new to MBS, such as Cruise Shipping Asia 2011, WasteMET Asia 2012, Singapore International Water Week 2012 as well as the major crowd-puller, CommunicAsia, which attracted some 38,000 attendees to its 2011 edition.
Resorts World Sentosa (RWS) has hosted over 1,200 events in the first six months of this year alone, compared to the 1,500 events it held over the nine months it was operational last year.
Among those held at RWS this year were the World Chinese Entrepreneur Convention and the 13th Asia Pacific Life Insurance Congress.
'By the end of the year, we are expecting to double the total number of events compared to last year,' said RWS's vice-president of MICE sales and event services, Paul Stocker. 'We are receiving more than 30 enquiries every day.'
Expansion is also underway for some local venues, which is expected to allow them to both net more events and put on a better show.
RWS, for instance, has two more luxury hotels opening in 2012, in addition to its Marine Life Park oceanarium.
'This would enable us to host even bigger events with our increased capacity. While taking into consideration global economic volatility, we are cautiously optimistic that we can increase events by at least 20 per cent (next year),' added Mr Stocker.
The Singapore Expo - which already racks up some 600 events annually and attracts some six million visitors - is launching a new wing come March next year, adding over 8,000 square metres of space to its existing inventory.
Excluding the new wing - which is energy- and water-efficient as well as built with eco-friendly furnishing materials - the Expo already has over 123,000 sq m of indoor and outdoor space.
As competition heats up in the region, venues have had to reinvent themselves to enhance the experience offered as the needs of event organisers change, highlighted a spokeswoman for Singex, the Expo's manager.
'Delegates and organisers alike are also seeking more value-add services,' she added, pointing to features such as high-speed wireless connection.
Meanwhile, Suntec Singapore International Convention & Exhibition Centre is on track to meet its target of some 1,500 events this year, with footfall expected to clock some 7.1 million.
'2011 has proven to be positive and, in most respects, comparable to last year. Our outlook remains optimistic and we continue to see growth across all business segments,' said Pieter Idenburg, Suntec's CEO.
However, with the economy expected to grow at a more subdued pace from now to 1H2012, this could also translate to slower growth for the MICE industry.
According to Mr Idenburg, growth for the MICE industry could 'start to level out a bit' next year.
Companies could also pull back when it comes to budgets, with small and mid-sized event organisers likely to be a little more cautious when it comes to spending, added the Singex spokeswoman.
Still, Stephen Tan, chief executive of event organiser Singapore Exhibition Services (SES), pointed out that the economy is unlikely to rock the boat for bigger events, given that deals are often sealed over a year in advance for major shows. For instance, Food&HotelAsia (FHA) 2012 - which SES is organising - is set to cover some 92,000 sq m at the Expo next year.
'The decision-making was done some time ago,' he said, adding that the majority of booth space had also been taken up.
If economic conditions deteriorate rapidly, a more likely outcome would be a dip in the number of visitors as people will become more discerning about which trade shows to attend, he noted.
Kingsmen Creatives will release their 3Q and 9M 2011 financial statements on November 9, 2011 (Wed) after market close.
Business Times - 09 Nov 2011
Kingsmen's Q3 net profit up 75.9%, sees stronger Q4
By ANGELA TAN
Kingsmen Creatives Ltd reported on Wednesday that its net profit for the third quarter ended September 30, 2011 rose 75.9 per cent from a year ago to S$4.45 million.
Revenue was up 27.4 per cent at S$86.26 million. This was achieved despite the absence of a major exposition event - the Expo 2010 in Shanghai. It saw notable revenue growth from all other divisions, especially the Interiors division.
On November 9, 2011, the company's order book stood at S$254 million, of which S$229 million is expected to be recognised in FY2011.
Kingsmen expects 4Q 2011 to be a stronger quarter and FY2011 to be another rewarding year, barring unforeseen circumstances.
(Vested)
Kingsmen's 3Q results.....
http://info.sgx.com/webcoranncatth.nsf/V...3003150A8/$file/KingsmenSGXAnnouncementQ311FINAL.pdf?openelement
Based on the strong 3Q results and the forecast of a stronger 4Q, and the fact that 1st 3 quarters' NP at $10.314m is already 9.4% ahead of last FY's $9.432m, it does appear that Kingsmen is poised to post yet another record NP in FY11 (vs. FY10's NP of $15.066m). Based on the latest 191.0m outstanding issued shares, a full-year NP of say $15.5m will translate into an EPS of $0.081.
I guess it is likely that Kingsmen will keep the Final dividend for FY11 at $0.025/share (FY10: $0.025/share).
(09-11-2011, 10:24 PM)dydx Wrote: [ -> ]I guess it is likely that Kingsmen will keep the Final dividend for FY11 at $0.025/share (FY10: $0.025/share).
For Kingsmen to pay out 2.5 cents/share for FY 2011, that would amount to about $4.75 million, which is theoretically possible as 9M 2011 free-cash-flow stands at $9.25 million. Cash balance (net of pledged cash) stands at $30.6 million. But being conservative, I would simply be expecting a final dividend of 2c/share, unchanged from last year.
Assuming a full-year dividend of 3.5c/share, dividend yield is 6.1% at current last done price of 57.5 cents.
On a separate note, OCBC's report (attached) mentions dropping coverage on Kingsmen due to "low trading liquidity and a reallocation of resources", a thinly-veiled attempt to hide the fact that they prefer to cover companies which have much higher "churn" so as to generate more commissions for themselves. I guess we can't blame analysts for neglecting companies with low liquidity - it is somewhat of a conflict of interest for them to cover such companies!