Kingsmen Creatives

[Musicwhiz]

Hi all

I was researching KC's annual reports. While top line growth has been impressive over the past few years. this hasnt really translated to bottom line and EPS growth. any concerns on this or have I missed something? Otherwise the company does look like it has gd fundamentals.

Sorry I missed your question the last time.

During the AGM, it was shown that Kingsmen has grown revenues by a CAGR of about 10% over 4 years and NPAT at about 5% over the same period.

I wouldn't really call 10% CAGR "impressive", more like slow and steady. While it is true that NPAT growth has been less than revenue, we must factor in new business segments (theme parks), higher personnel costs and more labour intensive operations (for setting up of theme parks, larger events/exhibitions etc). I think the Group has done admirably in growing slowly but steadily over the years.

These are not major concerns for me. GPM and NPM are steady and stable and ROE is >20%, plus there is consistent FCF generation.

Would be good to hear from you if you have any other views or observations of the Company.