Kingsmen Creatives

[freedom]

Kingsmen's receivable collection was not always that timely and it also has substantial payable, so it makes sense for Kingsmen to hold more cash.

The other reason could be that Kingsmen is planing for some major capex. I have heard that the management is planing to find a big place for the company or find a place to build their own, which would require substantial cash.

[dydx]

I could not replicate dydx's arithmetic of Pico squeezing out 3x more PBT than Kingsmen in 1H 2012 (my accounting ineptitude no doubt) but dydx does make an excellent point regarding the different phasing of reporting periods (see the pertinent excerpt from dydx's posting below).

Revenue wise, based on the latest HY numbers, Pico Far East is now about 2.5x of Kingsmen.....
http://www.pico.com/wp-content/uploads/2...Report.pdf [Pico Far East's 1H ended 30Apr12]
http://info.sgx.com/webcoranncatth.nsf/V...6002F21C6/$file/KingsmenSGXAnnouncementQ212FINAL.pdf?openelement [Kingsmen's 1H ended 30Jun12]
Profit wise, based on PBT and the lastest HY numbers, Pico Far East is now about 3.0x of Kingsmen, but we must bear in mind that Pico Far East ends its FY on 31Oct, and Kingsmen ends its on 31Dec; and because Kingsmen does a lot more business in Retail Interiors, its 2H's revenue and PBT tend to be substantially higher - usually by at least 50% - than its 1H's.

Correction: Based on the respective latest 1H-FY12 numbers of the 2 groups, Pico Far East's PBT at HKD122.44m is equivalent to 2.26x of Kingsmen's PBT at $8.755m. My apology for the calculation error.

I like to share 3 other points on this Kingsmen vs. Pico Far East discussion -

(1) Based on their latest quarterly result announcements, Pico Far East now has a huge 1212.63m issued shares, vs. Kingsmen's only 191.646m issued shares. On this score alone, by design - i.e. a big issued share base, and likely also many more shareholders - Pico Far East's share price evolution should be more volatile on a daily basis.

(2) Based on its last done share price of HKD1.69, Pico Far East now has a market cap. of HKD2049.3m, equivalent to $331.6m. Based on its last done share price of $0.745, Kingsmen now has a market cap. of $142.8m. Pico Far East's current market cap. being approx. 2.32x of Kingsmen's - quite in line with their relative differentials in revenue and PBT - is an indication that at the moment Mr Market does distinguish their difference in size but values the 2 groups based on quite similar earning multiples.

(3) Being smaller in market cap. but higher in ROE, Kingsmen appears to be a more affordable and attractive acquisition target, when compared to Pico Far East.

[dydx]

I walked past Orchard Ion yesterday and noted that H&M is opening another store - its 2nd I think, and a mid-size one - on level B1 along the concourse in the direction towards Wheelock Place. And guess what - Kingsmen is the fit-out contractor working on-site! I guess the contract should be worth at least $1.0m to 2.0m. More info on H&M.....
http://www.hm.com/sg/

It appears there are many other new stores opening up in Orchard Ion, as quite a number of the existing first-batch tenants since the opening of the mall some 3 years ago may be calling it quits, for various reasons. Whatever it is, this kind of situation is a boon for Kingsmen!

[Musicwhiz]

I walked past Orchard Ion yesterday and noted that H&M is opening another store - its 2nd I think, and a mid-size one - on level B1 along the concourse in the direction towards Wheelock Place. And guess what - Kingsmen is the fit-out contractor working on-site! I guess the contract should be worth at least $1.0m to 2.0m. More info on H&M.....
http://www.hm.com/sg/

That's certainly good news, though it would not be a surprise as Kingsmen was their fit out contractor for their first outlet near 313 Somerset.

H&M should be opening their third and fourth outlets in Suntec City and Jem mall respectively, in 2013 and 2014. Dates not confirmed though, but locations are from news which I've read recently. If all goes well, Kingsmen should secure the fit outs for these new outlets as well.

[wsreader]

dydx
So you walked past Tangs Plaza on Scotts Road and checked out the renovation at THG outlet. Then you walked past Orchard Ion and checked out the fit-out work at H&M new store.
Is that your regular day, walking around and doing scuttlebug investigation?

I like your life style.

[dydx]

dydx
So you walked past Tangs Plaza on Scotts Road and checked out the renovation at THG outlet. Then you walked past Orchard Ion and checked out the fit-out work at H&M new store.
Is that your regular day, walking around and doing scuttlebug investigation?

I like your life style.

Of course not! After lunch, I just happened to walk past the 2 spots en route to my next appointment. But I do enjoy my current rather care-free lifestyle a lot!

If you actually meant "scuttlebutt", and not "scuttlebug", which is a super-fun toy for the kids.....
http://www.youtube.com/watch?v=IrwxFKWB-sU

[wsreader]

Oops! u r right, should be scuttlebutt.

For a brief moment, I thought there is KLKK jobs in this world.

[FFNow]

dydx has done some scuttlebutting for scuttlebug

[RBM]

Forummers who review this Kingsmen VB thread regularly will recall that in February this year, Kingsmen announced that Delta Lloyd Asset Management NV, a Dutch fund manager, had become a substantial shareholder, i.e. owning 9,550,000 shares or just over 5% of Kingsmen's equity. These Kingsmen shares are held by two Delta Lloyd Funds, i.e. i) Delta Lloyd Azie Deelnemingen Fonds N.V. and ii) Delta Lloyd L Asian Participation Fund.

Out of curiosity, I have just read the 2Q 2012 report of the former fund (the one that is a bit more of a mouthful) - it was interesting to note that of the fifteen (15) Asian investments where Delta Lloyd has reached their stated goal of holding a minimum 5% interest, that Kingsmen was the second best % performer during Q2, and it was darn close to being their No. 1. Some of Delta Lloyds' other Asian investments have clearly not faired nearly so well. Pity that Kingsmen is the 13th largest constituent of this Delta Lloyd fund!

It will be interesting to see what Delta Lloyd does with their holding in Kingsmen (increase it??!!). For those VB forummers wishing to practice their Dutch, I attach the Delta Lloyd website below..............

http://www.deltalloydassetmanagement.nl/...gen-fonds/

I am still perplexed why Delta Lloyd was not declared as a substantial shareholder of Kingsmen in the 2012 Annual Report, published in March this year, i.e. after Delta Lloyd's 5% shareholding was announced to the SGX.

Vested (in Kingsmen!)

[RBM]

Building on my posting of last night, I thought that some of Delta Lloyds’ other recent statements on Kingsmen may be of interest to VB forummers. On their website, Delta Lloyd Asset Management have a section where they describe their view of the larger investments that they hold. I have attempted to translate two snippets regarding their Kingsmen investment that I found interesting. Delta Lloyd quote their Fund Manager, Gillian Wu. I do think the bit on seasonal re-fits is a bit overdone! (in Singapore?!)

Website:
http://www.deltalloydassetmanagement.nl/...gen-fonds/

My amateur translation:

QUOTE

Excellent track record

The mission statement of Kingsmen reads: "Design-led, Quality and Service-driven". Quality is at the forefront of this Singaporean company. Fund Manager Gillian Wu states: "Thanks to the high quality of their work and their tight project management, Kingsmen has a strong track record. Kingsmen therefore has a good starting position to secure new, large projects in the region". The company is also known for its high-quality interior design and is the market leader in the middle and upper segments in the retail sector. Kingsmen's strong brand name in this field should continually provide for the retention of existing customers and winning new customers.

Recurring orders from existing customers

70% of the revenue from the interior division emanates from repeat customers. Gillian Wu states: "Shops are normally refurbished/redecorated every three years. Additionally, twice a year, small adjustments are required in to the stores for the winter and summer seasons. Over many years, Kingsmen has regularly interacted with their customers, good relationships have been built and they perfectly understand the needs of their customers. This also keeps the company continually informed regarding the new works to win. In short, we are convinced that Kingsmen’s activities in the future will further enhance and create value for its shareholders".

UNQUOTE

That is enough translating for one day. And for any Dutch VB forummers.......... please feel free to correct my attempt to translate this. Vr. Gr.

Vested

Forummers who review this Kingsmen VB thread regularly will recall that in February this year, Kingsmen announced that Delta Lloyd Asset Management NV, a Dutch fund manager, had become a substantial shareholder, i.e. owning 9,550,000 shares or just over 5% of Kingsmen's equity. These Kingsmen shares are held by two Delta Lloyd Funds, i.e. i) Delta Lloyd Azie Deelnemingen Fonds N.V. and ii) Delta Lloyd L Asian Participation Fund.

Out of curiosity, I have just read the 2Q 2012 report of the former fund (the one that is a bit more of a mouthful) - it was interesting to note that of the fifteen (15) Asian investments where Delta Lloyd has reached their stated goal of holding a minimum 5% interest, that Kingsmen was the second best % performer during Q2, and it was darn close to being their No. 1. Some of Delta Lloyds' other Asian investments have clearly not faired nearly so well. Pity that Kingsmen is the 13th largest constituent of this Delta Lloyd fund!

It will be interesting to see what Delta Lloyd does with their holding in Kingsmen (increase it??!!). For those VB forummers wishing to practice their Dutch, I attach the Delta Lloyd website below..............

http://www.deltalloydassetmanagement.nl/...gen-fonds/

I am still perplexed why Delta Lloyd was not declared as a substantial shareholder of Kingsmen in the 2012 Annual Report, published in March this year, i.e. after Delta Lloyd's 5% shareholding was announced to the SGX.

Vested (in Kingsmen!)