Straco Corporation

Straco reports double-digit growth in revenue and earnings for 3Q

http://infopub.sgx.com/FileOpen/MediaRel...eID=324800 [Media Release]

http://infopub.sgx.com/FileOpen/Straco3Q...eID=324799 [SGX Announcement]

Really solid results. Aquarium visitors soared by over 30% to hit record high of 1.65 million in 3Q 14. As such, revenue and net profit increased substantially to $72 million and $34 million respectively. The company has $156 million net cash (including $22 million deposit for the Flyer). There are no details on the on-going acquisition of the Singapore Flyer. If Straco reports $40 million NPAT for FY 2014, the Company will be valued at 15x PE.

(Vested)

Salute the low profile and hardworking owner... another Godfather Wu...

Will keep monitoring...

Not Vested
GG

(14-11-2014, 05:53 PM)Nick Wrote: Straco reports double-digit growth in revenue and earnings for 3Q

http://infopub.sgx.com/FileOpen/MediaRel...eID=324800 [Media Release]

http://infopub.sgx.com/FileOpen/Straco3Q...eID=324799 [SGX Announcement]

Really solid results. Aquarium visitors soared by over 30% to hit record high of 1.65 million in 3Q 14. As such, revenue and net profit increased substantially to $72 million and $34 million respectively. The company has $156 million net cash (including $22 million deposit for the Flyer). There are no details on the on-going acquisition of the Singapore Flyer. If Straco reports $40 million NPAT for FY 2014, the Company will be valued at 15x PE.

(Vested)

(14-11-2014, 05:53 PM)Nick Wrote: Straco reports double-digit growth in revenue and earnings for 3Q

http://infopub.sgx.com/FileOpen/MediaRel...eID=324800 [Media Release]

http://infopub.sgx.com/FileOpen/Straco3Q...eID=324799 [SGX Announcement]

Really solid results. Aquarium visitors soared by over 30% to hit record high of 1.65 million in 3Q 14. As such, revenue and net profit increased substantially to $72 million and $34 million respectively. The company has $156 million net cash (including $22 million deposit for the Flyer). There are no details on the on-going acquisition of the Singapore Flyer. If Straco reports $40 million NPAT for FY 2014, the Company will be valued at 15x PE.

(Vested)

Congrat to the company shareholders. It is indeed a company worth our attention and money

(not vested)

More aquarium visitors boost Straco's Q3
By
Cai Haoxianghaoxiang@sph.com.sg@HaoxiangCaiBT
Aquarium151114.jpg Tourism operator Straco Corporation reported a net profit of S$19.5 million for the three months ended Sept 30, 2014, up 28 per cent from S$15.2 million a year ago. Revenue rose 26 per cent to S$38.6 million, from S$30.5 million. PHOTO: ST
15 Nov5:50 AM
Singapore

TOURISM operator Straco Corporation reported a net profit of S$19.5 million for the three months ended Sept 30, 2014, up 28 per cent from S$15.2 million a year ago. Revenue rose 26 per cent to S$38.6 million, from S$30.5 million.

Straco's results do not include that of

Straco Corporation - China growth story intact
CIMB Research
14 Nov 2014

Straco’s 3Q14/9M14 core net profit beat expectations at 54%/92% of our FY14 estimate. 3Q is the seasonally strongest quarter and typically accounts for 45% of annual net profit. The strong results were driven by 31% yoy growth in visitor arrivals at its aquariums. We believe its growth story in China is intact; the only overhang is its recent acquisition of the Singapore Flyer.

Straco’s share price has fallen 11% since our downgrade to Reduce following the acquisition, and we believe the downside risks are already priced in. As such, we upgrade the stock to Hold. In view of the strong results, we raise our FY14-16 EPS by 9-12%, but our DCF-based target price falls slightly (13% WACC) as we roll forward to FY15 and factor in a lower terminal growth rate.

Aquariums continue to deliver
Visitor arrivals at Straco’s Shanghai Ocean Aquarium (SOA) and Underwater World Xiamen (UWX) rose 31% yoy to 1.65m in 3Q (our estimate: +17%). As the bulk of its operating expenses are fixed, the strong revenue growth of 26% yoy allowed Straco to recognise operational efficiencies, and net profit increased by 28% yoy. Excluding a one-off admin expense of S$0.35m incurred at UWX, net profit rose 30% yoy. PBT margin expanded to 75.3% (3Q13: 74.0%), while net margin rose to 50.6% (3Q13: 49.9%). The visitor arrivals were largely driven by Straco’s marketing efforts to increase awareness of its aquariums via social media. Going forward, we have factored in slower visitor arrival growth of 10% yoy in FY15-16.

Cash pile available to revamp the Flyer
Straco ended the quarter with S$134m in cash and no debt. SOA and UWX continue to drive Straco’s strong operating cashflow generation, which is on track to reach c.S$40m this year. Stable cashflows from SOA and UWX will provide Straco with resources to rejuvenate the Flyer after the acquisition is completed by end-FY14, and allow it to focus on growing its visitor arrivals.

Upgrade to Hold
Straco’s share price has corrected by 11% since our downgrade to Reduce in Aug, following Straco’s acquisition of the Flyer. We believe the current share price has already reflected the downside risks from the Flyer. Therefore, we upgrade the stock to Hold. Valuations look palatable at 12x forward P/E vs. the 17x it traded at prior to the acquisition.

https://brokingrfs.cimb.com/hwUvvjzgH4lM...QnkjA1.pdf [Report]

Picked up some more at 70 cents today; ironic that price drops when results are good! Classic insanity of markets.

Announcement of cessation of Mr Chen Hong Sheng as Non-Executive Director due to his retirement

http://infopub.sgx.com/Apps?A=COW_CorpAn...GnslMn2X1A

(Vested)

This Reasonably Cheap Share Seems Poised For Growth

Straco Corporation Ltd (SGX:S85) is currently reasonably valued and seems to have a bright future ahead.
By Ser Jing Chong - November 17, 2014 | More on: ES3S85^STI

https://www.fool.sg/2014/11/17/this-reas...or-growth/

PROPOSED ACQUISITION OF THE BUSINESS AND ASSETS OF SINGAPORE FLYER PTE. LTD. – COMPLETION

http://straco.listedcompany.com/newsroom...YTF7.1.pdf

Straco will be partially financing this acquisition with S$84 million debt facility from DBS. The total cost of the acquisition based on Straco's 90% stake works out to $126 million. In 3Q 2013, Straco paid a deposit of $21.2 million (including $2.1 million from its JV partner) to tender for this project so the remaining balance works out to approximately $107 million [Please correct me if I am wrong].

Interestingly, despite holding on to a substantial cash hoard of $134 million with no gearing, the Company has elected to use debt to largely finance the acquisition of the Flyer. I suspect a reason would be to tap on SGD debts at relatively lower rates compared to higher deposit rates in RMB in China. This will allow Straco to maintain its steady interest income stream over the next few years. I look forward to the Management's plan to turnaround this asset and how their capital structure will look like in 4Q 2014.

(Vested)

(02-12-2014, 02:48 AM)Nick Wrote: PROPOSED ACQUISITION OF THE BUSINESS AND ASSETS OF SINGAPORE FLYER PTE. LTD. – COMPLETION

http://straco.listedcompany.com/newsroom...YTF7.1.pdf

Straco will be partially financing this acquisition with S$84 million debt facility from DBS. The total cost of the acquisition based on Straco's 90% stake works out to $126 million. In 3Q 2013, Straco paid a deposit of $21.2 million (including $2.1 million from its JV partner) to tender for this project so the remaining balance works out to approximately $107 million [Please correct me if I am wrong].

Interestingly, despite holding on to a substantial cash hoard of $134 million with no gearing, the Company has elected to use debt to largely finance the acquisition of the Flyer. I suspect a reason would be to tap on SGD debts at relatively lower rates compared to higher deposit rates in RMB in China. This will allow Straco to maintain its steady interest income stream over the next few years. I look forward to the Management's plan to turnaround this asset and how their capital structure will look like in 4Q 2014.

(Vested)

It is a wise move to finance the acquisition with SGD debt. It should be a secured debt, with the Flyer's asset, which should carry a very low interest rate.

Let's see the detail on next AR.

(not vested, but monitoring)