Thanks for the insightful and thorough analysis you have done for Kingsmen.
(Although i believe u humbly mentioned that it was done more for your purchase diary?? )
From my limited knowledge of Business Analysis, i noticed that:
USS theme park project's value is worth some S$70 M, which is more than 30% of FY 2009's revenue.
What is the distribution of the revenues?
Should the theme park project be categorized as different segment?
Should we then consider their competitors from theme park segment as well? (i have google-d but not manage to find any - at least for now).
(07-10-2010, 03:11 PM)valuestalker Wrote: Hi MusicWhiz,
Thanks for the insightful and thorough analysis you have done for Kingsmen.
(Although i believe u humbly mentioned that it was done more for your purchase diary?? )
From my limited knowledge of Business Analysis, i noticed that:
USS theme park project's value is worth some S$70 M, which is more than 30% of FY 2009's revenue.
What is the distribution of the revenues?
Should the theme park project be categorized as different segment?
Should we then consider their competitors from theme park segment as well? (i have google-d but not manage to find any - at least for now).
Hi Value Stalker,
I believe Kingsmen's financial statement and press release does give a breakdown of the revenues accruing to Museums and Exhibitions, as well as Interiors, which are Kingsmen's two major divisions. If you want a further breakdown of revenues into specific projects, I'm afraid it will not be made known as the Company does not give sich details about the breakdown (only rough contract values). I guess this is also because of privacy and client confidentiality.
Right now, the theme park is being classified under "Museums and Exhibitions", but I believe that if Kingsmen is able to garner more of such thematic/scenic works contracts, then it may justify creating a new business unit to park the revenues/profit numbers there; and it will also be shown as a separate column in the segmental report of Kingsmen's AR.
Essentially, Kingsmen's competitors in the theme park segment are rather similar to their competitors in the Museums/Exhibitions segment, and these will include the usual players like Pico FE and Cityneon, as well as any number of local contractors with mid-sized operations who may be able to help out with certain sections of the mega-project. A theme park is a huge project and work is usually handed out in parcels, and also to more than one contractor. Hence, every player will get a piece of the pie; which is why I mentioned the pie will be enlarged in 3-5 years time as theme parks take hold in Asia.
Oct 15, 2010 Business booming for Mice sector 20% surge in events due to economic rebound and IRs' opening, say players
By Huang Lijie
THE business events industry is roaring with a 20 per cent surge in the number of meetings, incentives, conventions and exhibitions (Mice) and more foreign visitors at these events.
The bullish outlook has even prompted rivals such as Resorts World Sentosa (RWS) and Suntec Singapore to band together and jointly bid for international events.
Mr Edward Liu, president of the Singapore Association of Convention and Exhibition Organisers and Suppliers, said: 'The uptick in Mice events compared with last year is as much as 20 per cent. We are back on an even keel with pre-crisis numbers and, hopefully, it will be even better next year.'
Trade shows such as Communic- Asia2010 and BroadcastAsia2010 posted an 11 per cent jump in attendance from last year and drew more than 55,000 visitors.
The number of foreign visitors to the two shows targeting the infocommunications and media industry also increased by more than 4,000.
And next month, the 18th International Oil and Gas Industry Exhibition and Conference at Suntec Singapore is set to be its biggest ever, with more than 1,500 exhibitors. It is expected to draw 22,000 visitors.
According to the latest statistics from the Singapore Tourism Board, Singapore drew 2.6 million business travellers last year who spent about $4.2 billion. This made up 27 per cent of total visitors and about 33 per cent of total tourist spending.
The rebound, say Mice organisers and venue providers interviewed, rides on the wave of economic recovery and the opening of the two integrated resorts (IRs) - RWS and Marina Bay Sands (MBS).
Ms Angeline Kim-Kyna Tan, director of marketing communications for Fairmont Singapore, which runs the Raffles City Convention Centre, said the resulting buzz for Singapore has 'enlarged the pie for all players' in the market.
The IRs offer a total of 180,000 sq m of exhibition space, adding to the 135,000 sq m previously available for Mice.
The Sands Expo and Convention Centre at MBS has played host to over 100,000 participants and more than 150 events since it debuted in April. A similar number of Mice visitors have attended the more than 290 events held at RWS since its Mice business started in March.
Indeed, despite stiff competition from other Mice venues, Singapore Expo attracted no fewer than 15 new events this year, including the World Cancer Congress and the Asia Investment Banking Conference.
The buoyant Mice market here has even pushed competing venue providers, RWS and Suntec Singapore, to join forces and jointly bid for more than 10 international events happening as far in the future as 2014.
The partnership offers clients the option of holding exhibitions and meetings at Suntec Singapore during the day and continuing with after-hours social functions and entertainment at RWS, whose facilities include Universal Studios and a casino.
The outlook for next year looks bright, industry players say.
New shows debuting here include the inaugural Art Stage Singapore, a high-end art fair at MBS and the World Chinese Entrepreneurs Convention at Suntec Singapore.
Mr Chua Wee Phong, executive director of Sphere Exhibits, a wholly owned subsidiary of Singapore Press Holdings, is similarly optimistic about the future and rolling out 22 shows next year - 10 more than this year.
He said: 'The Mice industry will continue to boom because the economy in Asia is moving up the ladder.'
Kingsmen had won this Interior Builders Gold Award for the 3rd Consecutive Year but did not announce it on SGXNet. Instead, I only found out while browsing their website.....take a look at the attachment for details!
There is little doubt that Kingsmen's strong design focus, strong project management capability, consistent service delivery, and good customer relationship management, will together place the group at the top.
I visited the Marina Sands Shoppes last weekend and saw there are still quite many retail outlets being fitted out, presumably rushing to finish and open before the coming Christmas shopping season. It looks like Kingsmen will be kept very busy through Dec.
(25-10-2010, 10:03 PM)dydx Wrote: There is little doubt that Kingsmen's strong design focus, strong project management capability, consistent service delivery, and good customer relationship management, will together place the group at the top.
I visited the Marina Sands Shoppes last weekend and saw there are still quite many retail outlets being fitted out, presumably rushing to finish and open before the coming Christmas shopping season. It looks like Kingsmen will be kept very busy through Dec.
Well Kingsmen is definitely being kept busy with Q3 revenue up by 7.6% but the bottomline figures with a 16.7% drop do not inspire much confidence. Am not very sure how 2010 will turn out for them.
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
(10-11-2010, 05:56 PM)sgmystique Wrote: Well Kingsmen is definitely being kept busy with Q3 revenue up by 7.6% but the bottomline figures with a 16.7% drop do not inspire much confidence. Am not very sure how 2010 will turn out for them.
I note your concern as I perused through 3Q 2010's results. It's true that expenses rose faster than gross profit which resulted in the drop in net profit fot 3Q 2010. However, for 9M 2010 net profit was still up.
While I agree the performance for 3Q 2010 was not good, let's put things in perspective. Kingsmen is a contract-based company and we also know that its business is seasonal, with a lot of contracts and work booked in 4Q of the financial year (X'mas season). Hence, 4Q 2010 would be expected to be much stronger and will "round up" the year nicely; along with (I hope) a nice dividend of at least 2 cents/share.
If we look at the Balance Sheet and Cash Flow Statement for 30.09.2010, Kingsmen is still sailing ahead steadily with a strong Balance Sheet and positive cash flows.
Like Boustead, let's not look at just one quarter but rather the entire year's performance, as their revenues are project-based and hence lumpy.
Will provide more views after I look through the numbers.
10-11-2010, 06:42 PM (This post was last modified: 10-11-2010, 06:45 PM by dydx.)
(10-11-2010, 05:56 PM)sgmystique Wrote: Well Kingsmen is definitely being kept busy with Q3 revenue up by 7.6% but the bottomline figures with a 16.7% drop do not inspire much confidence. Am not very sure how 2010 will turn out for them.
Let's put things in a proper perspective. Using last FY09's NP of $14.9m (as we do not yet know how well Kingsmen will do profit wise in FY10, even though 1st 9 months' NP already came to $9.432m, ahead of the corresponding last FY's $8.965m) as a basis, and using the 31Dec09 Equity $51.876m as denominator, we have in Kingsmen a business that is poised to deliver a ROE of 28.7% this year. Using the same NP number, we are talking about a FY10's EPS of $0.0784, based on the 190.112m issued shares as at 30 Sep10. Based on today's closing share price of $0.63, we are talking about Mr Market attaching a PER of 8.04x on current year's forcast EPS, likely not counting the value of the over $20.0m worth of net cash reserve in the company. Of course, let's not forget about Kingsmen's rather good and consistent twice-a-year dividend payments.
The increase of expenses seems to be a one-off event as stated in the statement below:
iv) write-off of plant and property amounting to S$0.4 million as a result of the fire at our Malaysia factory premises.
If you exclude this one-off event, the profit would have dropped about 5% instead
Homepage
PR Newswire
