Straco Corporation

[chialc88]

星雅集团 Straco Corporation 4Q18
link to Straco 4Q18

1. Q4 Revenue drop to $22M (decrease 9.2%)
   
2. FY18 Revenue drop to $117M (decrease 8.2%)
   - Singapore drop frm $41M to $31M- China drop from $87M to $85M
3. FY18 Profit before tax drop to $62M (decrease 12.8%)
   
4. FY18 Net Profit drop to $44M (decrease 12.8%)
   
5. FY18 Earning per share drop to 4.86 cents (vs 5.55 FY17)
   

Comments:

• Lower 4Q revenue mainly due to lower revenue from SOA, underwater world Xiamen and Singapore Flyer
  
• Lower visitation to all attraction; 3.8% lower than 4Q17
  
• Slowest pace China GDP growth since GFC to 6.4% in 4Q18
  
• Slowest pace China GDP growth since 1990 for FY18
  

• Weighed down by weak investment and faltering consumer confidence amid ongoing trade dispute with US
  
• Visitor trends changed to experience local culture instead of just scenic spots
  

To be continue...


Recommendation from Mr Stanley Lim of ValueInvestAsia.com
was done in Oct 2017.
Unfortunately, Singapore Flyer operation was halted few months later.
Revenue take a big hit.

To be continue.

[chialc88]

Good morning valuebuddies.
Another bright sunshine day.
Wish everyone had an happy investment journey with Straco.

Debt is reducing and cash is piling up.
How and what Mr Wu going to do with the money?
picture from simplywall.st

[chialc88]

3.5 cents dividend
link to sgx on 1 cents div

link to 2.5 cents dividend

[chialc88]

Tourism in Transformation
Expansion of Asia Middle Class,
No specific travel patterns,
Sharing Economy.




A tourist might come to Singapore
to buy a branded bag, but the margin per transaction may not be high as the bag was not made here.

So, the growth in the number of tourist arrivals did not keep pace with tourism receipts.

Moving forward, the Republic is on the quest to grow tourists' value-add dollars
... referring to the quality of tourism spending here.



Focus country: China, Indonesia, India (via cruise)
Strategy: go beyond tier 1 market  and into secondary cities eg ChongQin

[CY09]

Hi Chialc88,

How does the latest STB focus "to grow tourists' value-add dollars" implicates Straco Singapore arm's business. Able to elaborate?

[chialc88]

Dear CY,
First of all, let me express my gratitude for your selfless sharing all these years.

You're definitely a top influencer on my investment journey.

Thank you very much.

---

rdgs to your questions, I don't have a particular numbers or facts to substantiate.

one of my theory investing into Straco is the strong connections (flights) between Singapore and China (tier 1 and secondary markets).

with newspaper reporting increasing increase in tourists from China (both tier 1 and secondary cities),
I would assume Straco could run some promotions and increase Singapore Flyer's ticket sales.

What about joint promotion of Singapore and ChongQin in 2019?

[chialc88]

20190426 AGM Presentation for Straco Corporation
(Link to Straco AGM ppt)

Extracted most important slides comparing to Micro Mechanics:


Enjoy a combo: Cruise and Singapore Flyer

[JanQuin]

20190426 AGM Presentation for Straco Corporation
(Link to Straco AGM ppt)

Extracted most important slides comparing to Micro Mechanics:


Enjoy a combo: Cruise and Singapore Flyer

[chialc88]

@JanQuin,
No. Din't attend Straco AGM.
However, do look out for the ppt materials for your favourite companies.
This year onward, AGM should have ppt and also meeting minutes.


Enjoy Singapore Flyer, Cruise and MBS light show:

[weijian]

Take a look at Penguin International Limited if you have some time:
(Link to PIL presentation on 25 April 2019)

Hi chialc88,
Considering that you have been around for a long time, VB Moderators have given you a lot of leeway and I believe this is not the 1st time we talked about this - Please stop this "out of topic" in individual company threads.

Please take this few actions yourself:
- Remove the ever changing link in your signature. You are exploiting our unconscious bias with the bold/red font against a relatively plain VB interface. This is distracting to all of us.
- Stop all activities that talks about company X in company Y thread (another example like this: https://www.valuebuddies.com/thread-2915...#pid152450)

Moderator