Kingsmen Creatives

Hi natnavi,
I seldom think demand as a big concern to Kingsmen. In my work in retail industry, I witness Kingsmen's quality service as compared to his competitors. In good times, they can focus on higher end stores, in tough times though, they hunt lower.
With their quality, they can win projects. It's a matter of margin.
The industry is low in barrier of entry and hence almost non-existence of Pricing Power.
In my co, we acknowledge the great service of Kingsmen, but when the next store is up to be fit-out, another tender has to be carried out. Likely the lower price will win. We may try to hint Kingsmen of the bid price, but which also means they will lower the price to match or risk lose the project.

Ps: in case you're wondering, our co not in high-end range, hence usually we don't use them (as budget is tight).

Just my 0.02

Sometimes I wonder retailing is going to be a sunset industry. With many online store offering very attractive price.

Amazon, eBay, taobao, carousel, shopee. From desktop pc to mobile device. From web to app. Now I hardly visit retail shop unless want to have a feel of the physical products. Not only price the convenience counts too with goods send to your doorstep.

In fact now I wondering whether dairy farm will also get hit by this wave too.

(14-11-2015, 09:33 AM)hongonn Wrote: Sometimes I wonder retailing is going to be a sunset industry. With many online store offering very attractive price.

Amazon, eBay, taobao, carousel, shopee. From desktop pc to mobile device. From web to app. Now I hardly visit retail shop unless want to have a feel of the physical products. Not only price the convenience counts too with goods send to your doorstep.

In fact now I wondering whether dairy farm will also get hit by this wave too.

I do quite agree that retail might be a sunset industry. But when you have young kids its going to be different. They need to go out and expel their energy. They are impatient and wont wait for online delivery. 

But for myself, I buy stuff online . I thought Dairy Farm do provide online grocery delivery? We buy our online grocery from RedMart. We wanted to try Sheng Siong but unfortunately they have no online presence in the West.

To me, they will co-exist like online movies and cinema. I don't think I'd buy patek p online even if (or especially when) the price is halved.

Agreed. One of the things that these retailers focus on is the customer experience and the relationship with their sales associate. Nothing beats being served with a hot cup of tea while you try on those clothes or bags or cars.

Besides Kingsmen Creative does exhibition as well,and that is where many companies showcase and announces their latest products

No doubt that KC has good track record in this industry.

But if we look at their growth (CAGR) , it seems that it is pretty flat, except top line (Revenue).

 
KPI ............................................................Over Last 3 Years ....Over Last 5 Years
Revenue ........................................................ +8.83 % ...................+6.81 %
Net Earnings .................................................. +1.66 % ...................+2.86 %
Earnings Per Share (EPS) - Historical........... +1.08 % ...................+2.35 %
Earnings Per Share (EPS) - Adjusted ............+1.66 % ...................+2.86 %
Dividend Per Share (DPS) - Historical ...........000 ..........................+2.71 %
Dividend Per Share (DPS) - Adjusted ............ +0.62 % ................. +3.26 %






Now take a look their outlook statement (quarterly report) for next 12 months.



Q1 - As at 30 April 2015, we have secured contracts of approximately S$204 million, of which approximately S$181 million is expected to be recognised in FY2015. Barring unforeseen circumstances, we expect FY2015 to be a good year. 



Q2 - As at 31 July 2015, we have secured contracts of approximately S$262 million, of which approximately S$240 million is expected to be recognised in FY2015. Barring unforeseen circumstances, we expect FY2015 to be a reasonably good year. 



Q3 - As at 31 October 2015, we have secured contracts of approximately S$348 million, of which approximately S$305 million is expected to be recognised in FY2015. Barring unforeseen circumstances, we expect FY2015 to be a profitable year, with results being lower than that of FY2014, reflecting the challenging business environment.  





IMO, the Fy2015 is expected to be lower than Fy2014, there is more downside than upside with current trading price of 71c.   





(not vested... KIV)

(14-11-2015, 10:36 AM)ksir Wrote: To me, they will co-exist like online movies and cinema. I don't think I'd buy patek p online even if (or especially when) the price is halved.

wat!! PATEK P 50% off!! if from amazon or reputable online seller, just GRAB IT!!

(14-11-2015, 10:50 AM)brattzz Wrote:

(14-11-2015, 10:36 AM)ksir Wrote: To me, they will co-exist like online movies and cinema. I don't think I'd buy patek p online even if (or especially when) the price is halved.

wat!! PATEK P 50% off!! if from amazon or reputable online seller, just GRAB IT!!

Haha. If it comes from am AD, I would be the first to get it. However, if it comes from some online store, I do not think I will buy it. I rather not part my 10k online, and I won't even know if the watch is authentic or not or whether I will even get my watch.

In this type of retail changing situation, KC needs to innovate fast, together with it's industrial partners and biz partners relationship,

eg, One-Stop-Customized service for clients,
1) Setup/Provide Online Web Design/Transaction partnership for their existing brick and mortar's biz partners
2) Provide Big Data reports for sales/marketing strategy
3) Established Alliances to emerging markets forays quickly, eg, India, Cambodia, etc..

Or otherwise,

1) Cut size, and cost, remain sharp and nimble with a smaller team/co.
2) Sell themselves to Amazon, or their biggest competitor, get out while it's still profitable!

Retail has evolved, to be in it, have to be relevant and part of the value chain. Consumers are expecting MORE MORE MORE!

(14-11-2015, 10:54 AM)natnavi Wrote:

(14-11-2015, 10:50 AM)brattzz Wrote:

(14-11-2015, 10:36 AM)ksir Wrote: To me, they will co-exist like online movies and cinema. I don't think I'd buy patek p online even if (or especially when) the price is halved.

wat!! PATEK P 50% off!! if from amazon or reputable online seller, just GRAB IT!!

Haha. If it comes from am AD, I would be the first to get it. However, if it comes from some online store, I do not think I will buy it. I rather not part my 10k online, and I won't even know if the watch is authentic or not or whether I will even get my watch.

alamak, Do have confident in Amazon sir!