Straco Corporation

[Nick]

Powered away to close at $1.09 today. 1Q results will be released this Friday. Interesting to see how much the Flyer will contribute to the bottomline.

(Vested)

[greengiraffe]

Based on the lower tourist arrival numbers in 1Q15 and the lack of fresh initiatives since the takeover, one should exercise caution in terms of the contributions by the Flyer.

Having said that, Straco has a substantial lower fixed cost based to operate on compared to the original costs.

Not Vested

Powered away to close at $1.09 today. 1Q results will be released this Friday. Interesting to see how much the Flyer will contribute to the bottomline.

(Vested)

[CityFarmer]

I reckon the optimism comes from China revenue growth, rather on Flyer...

(not vested)

Based on the lower tourist arrival numbers in 1Q15 and the lack of fresh initiatives since the takeover, one should exercise caution in terms of the contributions by the Flyer.

Having said that, Straco has a substantial lower fixed cost based to operate on compared to the original costs.

Not Vested

Powered away to close at $1.09 today. 1Q results will be released this Friday. Interesting to see how much the Flyer will contribute to the bottomline.

(Vested)

[Nick]

Straco released its 1Q 2015 results yesterday with profits soaring by over 60% due mainly to contributions from the Flyer and growth in the core aquarium business.

http://straco.listedcompany.com/newsroom...BWOB.1.pdf [1Q Results]

http://straco.listedcompany.com/newsroom...BWOB.2.pdf [Press Release]

1) Revenue grew by 71.5% to $25.15 million on the back of 32% growth in visitor numbers due to the inclusion of Singapore Flyer. SOA visitor numbers grew while UWX was hit by visitor numbers control so I suspect the latter profitability may have been impacted. The proposed ticket price increment could be another avenue of growth assuming the visitor numbers remain constant. No plans for the Flyer rejuvenation was revealed so one can only wait

2) Group's EBITDA margin was constant at 63% implying the Flyer did not depress the Group's margin i.e. it was generating similar level of profitability as the aquariums.

3) The Group FCF increased substantially to $10 million. It's balance sheet remains strong with net cash of $33 million. The debt it incurred to finance the Flyer acquisition has very low financing cost. It makes sense to keep the cash in China to earn higher interest income.

4) 1Q is traditionally a low season quarter so it doesn't make sense to annualize its return. The strongest quarter is 3Q. Assuming last year earnings grew by 30%, the EPS will be 5.8 cents or PE of 18.5.

5) Unfortunately, no breakdown was given so we cannot tell how much did the aquarium and the Flyer contributed. The clue lies in the Minority Interest which compromised of 5% stake in SOA, 5% in cable car business and 10% stake in the Flyer (in 2015). We can create a matrix to 'guess' the Flyer contribution:

i) Assuming the Flyer broke even implies the bulk of the MI belongs to the 5% stake in SOA: This would imply that SOA earned $10.0 million NPAT (an increase of 132%). This is not likely as it exceeds the Group NPAT implying UWX was loss-making.

ii) Assuming Flyer was loss making implies the aquarium component of the MI would exceed $0.5 million implying SOA more than doubled since last year. This would contradict the historic growth rate of SOA.

iii) Hence it is more likely that the Flyer was profitable and did contribute positively to the Group's bottomline and hence the MI. Assuming SOA grew by 20%, the MI contribution from the Flyer would be $0.25 million implying it generated NPAT of $2.5 million in 1Q 2015 which compares well with the $1 million profit earned in Dec 2014. This would imply $5 million NPAT from SOA, $2.5 million NPAT from Flyer and $1.6 million NPAT from UWX. One can play with SOA growth rates and derive other combinations. It is just my guesswork to 'show' the Flyer was likely to be profitable.

Naturally, this is just guess work. I hope the CIMB report would shine some light on this issue. Please feel free to point out some flaws in my assumptions.

(Vested)

[sykn]

I have also been looking at the results just released. The key unknown is how much was NPAT of SF in 1Q15? Previous estimate was $7M for full year and that SF is profitable. If your guess is right, then annual NPAT would be $10M. Assuming cost of capital at 10% and no growth in NPAT (conservative), I would estimate the Earning Power Value SF at around $100M, would that be right? Please correct me if my assumptions are wrong, thanks.

[Nick]

I have also been looking at the results just released. The key unknown is how much was NPAT of SF in 1Q15? Previous estimate was $7M for full year and that SF is profitable. If your guess is right, then annual NPAT would be $10M. Assuming cost of capital at 10% and no growth in NPAT (conservative), I would estimate the Earning Power Value SF at around $100M, would that be right? Please correct me if my assumptions are wrong, thanks.

I am estimating a quarterly profit of $2-3 million. I could be wrong. Just my not so intelligent guesswork.

We must note that this reflects the profitability of the Flyer in a 'as is' state. This means that without any rejuvenation, AEI, massive restructuring, the Flyer as it always has been is generating a decent level of profitability due to purchasing it below replacement cost price and low cost of debt. The key question is what will happen post-rejuvenation ! So I suspect the Flyer profitability could be vastly different in the years to come. Of course, this is just the 'excited me' talking - time will tell. It would be a lot more helpful if they had disclosed more operating statistics.

[Yoyo]

Segmental Reporting in AR 2013 Notes 26 provided a breakdown of business units by NPBT. The sum of the business units NPBT are then adjusted by unallocated head office and corporate expenses and consolidation elimination to arrive at the consolidated NPBT. This figure is then offset by income tax = NPAT.

Please note that unallocated head office and corporate expenses and consolidation elimination does not apply to MI. MI take its share on the business unit NPAT.

AR 2013 reported unallocated head office and corporate expenses and consolidation elimination of $5.6 million, quite substantial sum.

My observation: IMHO

The result release mentioned that traffic volume to SOA has increased, whereas UWX was restricted. For a business model of aquarium operator, a % increase in ticket sales/revenue will have a more than proportional % increase in net profit - Higher sales taking with minimal incremental cost. It appears that Straco has again surprised with its good aquarium business unit performance (as in how much money can be made out of this).

While it was mentioned that higher sales is also contributed by the Flyer, I shall read it in the context of no such contribution in the same quarter last year. For such a high profile new venture, management ought to be keen to report if the business unit has indeed turnaround from its loss position, or is making decent profit. The absence of such explicit representation is loud enough for me. At best, making a small profit - nothing to shout about.

Nevertheless, Straco has delivered a good set of results. Congratulation to all vested.

(not vested - missed the boat)

[Nick]

Over the past few days, Straco has repurchased its own shares from open market - 20,000 @ $1.03 and 200,000 @ $1.04.

(Vested)

[edragon]

Cash business I like. No need for receivables, bad debts, age analysis etc.

(Vested)

[GSG]

http://www.oeofo.com/news/201504/24/list113478.html
上海将现世界最多极地海洋动物

2015-04-24 来源：新闻晨报编辑：bigger

上海海昌极地海洋公园上月在临港滴水湖畔奠基，进入开工建设阶段。幕后操盘手—上
市公司海昌控股董事会主席曲乃杰告诉记者，这是顺应长江经济带国家发展战略、完善区
域布局，在长三角地区落下的第一枚“棋子”。
海昌控股战略投资方弘毅投资董事总经理袁兵说，定位于海洋文化主题旅游休闲目的地
建设的发展战略，将明显提升现有公园及上海、三亚等新项目收益水平。
极地海洋公园：迪士尼团队设计
极地海洋公园总用地面积约为29.7公顷，项目将由12个展示场馆、4个大型动物互动项目
场、3个大型影院以及15项大中型游乐设备组成，在展示南北极特色动物以及海洋鱼类的
同时，提供设备娱乐、特效电影、动物科普展示、科普教育和水上巡游等娱乐活动，预计
2017年底开业。
在设计方面，聘请了曾参与过迪士尼、SeaWorld等项目的国际知名设计团队联合设计，
整体突出极地海洋主题特色，注重游客体验，营造全方位的休闲游乐氛围，把传统的海洋
生物展示与先进的高科技手段相互结合，增加游客游玩的科普性、互动性、参与性，在动
物展示、科普教育、主题娱乐、高科技手段、巡游演艺等方面都具有国际一流水平，建成
后将跻身全球大型海洋公园之列。设计团队透露，设计中将体现中国元素，如特设长江流
域生物展示。
海昌控股总裁王旭光表示：“未来的上海海昌极地海洋公园将为游客提供世界上数量最
多的极地海洋动物展示种群，并且有新颖的极地海洋动物展示形式、精彩的极地海洋动物
表演、丰富的海洋科普教育内容和难忘的综合娱乐体验。”
操盘手揭秘：全球十大主题公园运营商
据了解，海昌控股作为中国领先的主题公园和配套商用物业开发运营商，于2014年3月
在香港联交所上市，公司连续数年入围全球十大主题公园运营商。
自2002年在大连建成中国首家以展示南北极动物为主的大连老虎滩极地海洋动物馆以
来，海昌控股经过十余年发展，先后在大连、青岛、成都、天津、烟台及武汉开发运营了
六个以极地海洋动物展示表演为特色的海洋公园，以及大连海昌发现王国主题公园、重庆
海昌加勒比海水世界两个综合游乐主题公园。拥有白鲸、北极熊、企鹅、海象、伪虎鲸、
海豚、海狮等约30种500多只极地动物和鲸鲨、沙虎鲨、双髻鲨等10余种500余条大型鲨鱼
以及约200余种40000余尾热带鱼和数十个品种的水母、珊瑚等，并拥有国内领先的动物保
育技术及管理体系。
多年来，海昌控股在品牌活动产品方面亦在寻求多种尝试，如极地类项目夜场、儿童舞
台剧等特色营销产品，并继续在项目内将科普教育与海洋产品结合，推广、升级科普课
堂，每年更不断更新以“海昌南极童话村”、“美人鱼”等为主题的年度营销活动。

未来战略：文化产业增加轻资产

事实上，上海极地海洋公园只是海昌控股未来5年战略的起点之一。海昌控股将合理选
择战略布局、建设旅游休闲目的地作为发展战略主线之一。曲乃杰说，随着上海项目的成
功实施，未来海昌控股将打造中国第一海洋文化旅游休闲品牌和国际化的海洋文化特色旅
游休闲平台型企业。
海昌控股确立了“开发建设海洋主题旅游休闲目的地”和“创新发展海洋文化产业”两条战
略发展主线。前者是海昌控股在未来持续提升海洋公园开发运营能力的核心，后者是其在
未来改善公司资产结构和盈利模式，探索轻资产高利润创新行业发展的新模式。“海昌控
股未来五年的发展战略让我看到了更好的未来。”袁兵说，海洋文化主题旅游休闲目的地
建设，将明显提升现有公园及上海、三亚等新项目收益水平；创新发展海洋文化产业，增
加轻资产高利润产业比例，也会改善公司的资产结构和盈利能力； 打造中国领先的海洋
文化旅游休闲品牌和国际化海洋文化旅游休闲平台型企业。