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Straco Corporation
27-04-2019, 06:49 PM.
Post: #281
RE: Singapore Flyer
(27-04-2019, 01:32 PM)chialc88 Wrote: @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:


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

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27-04-2019, 07:45 PM.
Post: #282
Rainbow  See you again. 再见 It's been a long day.
Hi WeiJian,
I guess I had been overdone again.

Consider this as my last post for 2019.

Wish all valuebuddies a healthy body and healthy mind.

Continue to share your ideas as many other valuebuddies including myself will benefit from your kind gesture tremendously
thou you might not know it.

See you again. 再见 It's been a long day.
=========== Signature ===========
感恩 26 April 2019 Straco AGM ppt  https://valuebuddies.com/thread-2915-pos...#pid152450

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20-05-2019, 12:24 AM.
Post: #283
RE: Straco Corporation
(24-11-2018, 04:06 PM)weijian Wrote:
(16-04-2018, 08:49 PM)weijian Wrote: The opening the Disneyland in Shanghai, expanded the entire pie - ie. it brought more tourists to Shanghai as a whole. A new Ocean Park definitely cannibalizes SOA business.

New Shanghai Ocean Park hoping to glean some of Disney’s magic and net 5 million visitors a year

Creator Haichang Ocean Park being seen as playing important role in cementing city’s plan to become a world-class tourist destination

Haichang Ocean Park Holdings, the mainland’s largest marine theme park operator, is targeting annual attendance of five million visitors at its soon-to-open venue in Shanghai, buoyed by the rising affluence of people living in the Yangtze River Delta region. Wang Xuguang, chief executive of the Hong Kong-listed company which is based in the northern Chinese city of Dalian, told South China Morning Post that estimate was based on a joint assessment with local tourism authorities on entertainment demands.

http://www.scmp.com/business/companies/a...ic-and-net

The Shanghai Haicheng Ocean park opened for business last week. Looking at the pictures, it looks like a cross breed between SOA and Disney land. Ticket prices are 279yuan (SHCOP) vs 155yuan (SOA), which is 1.8x more expensive. To put into perspective at Sentosa, USS (76sgd) and SEA (39sgd) is at ~1.95x more expensive. Ratios are pretty similar although it suggests SHCOP/SOA is a slightly more value proposition compared to USS/SEA benchmark. Of course, with ticketing agents and other tie ups/promotions, the difference might be insignificant.

That said, check on ctrip seems to suggest SHCOP rating of 3.9 (415 reviews) needs to do quite alot of catch up to SOA (rating of 4.5 with 13439 reviews). Remains to be seen whether SHCOP can resolve the issues and meet the expectations. SHCOP officially launched last week and so Straco's 1Q19 results would be very interesting to review.

http://www.themeparx.com/shanghai-haicha...rk/?page=1
SHCOP ratings on ctrip: http://you.ctrip.com/sight/shanghai2/4651499.html

yeokiwi's ctrip post on SOA: https://www.valuebuddies.com/thread-2915...#pid144898

Straco's 1Q19 results seems to suggest some decline in its topline and visitor numbers. Could it be related to SHCOP (as competition) or simply a general decline in discretionary spending in China as the trade war hits?

As Kelvesy mentioned before, such tourist attractions have fixed costs with operating leverage which cuts both ways - If it is attractive, marginal cost of accommodating more visitors is almost zero. If it is not attractive, then one still has to pay for all the feeding of the fishes and water filters despite the less eye balls.

1Q17 topline: 27.5mil. Visitors: 1.06mil
1Q19 topline: 24.5mil. Visitors: 0.986mil (Reduction of 74k)

1Q19: https://links.sgx.com/FileOpen/Straco1Q1...eID=559352
1Q18: http://straco.listedcompany.com/newsroom...U9I5.1.pdf

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05-07-2019, 10:10 AM. (This post was last modified: 05-07-2019, 10:11 AM by Coco.)
Post: #284
RE: Straco Corporation
Business Times article (attached) today on the positives of Straco. Strong free cashflow, lots of cash building up, inexpensive valuation.

(Didn't mention that visitorship nos. are flat )


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05-07-2019, 10:53 AM.
Post: #285
RE: Straco Corporation
(05-07-2019, 10:10 AM)Coco Wrote: Business Times article (attached) today on the positives of Straco. Strong free cashflow, lots of cash building up, inexpensive valuation.

(Didn't mention that visitorship nos. are flat )

Flat is good. Slowly milk it. I like.

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06-07-2019, 10:50 AM. (This post was last modified: 06-07-2019, 10:52 AM by weijian.)
Post: #286
RE: Straco Corporation
(05-07-2019, 10:10 AM)Coco Wrote: Business Times article (attached) today on the positives of Straco. Strong free cashflow, lots of cash building up, inexpensive valuation.

(Didn't mention that visitorship nos. are flat )

I took a quick look at Merlin. It is majority owned by Kirkbi (29% stake), a charity trust fund The Wellcome Trust (5%) and 2 investment managers - Value Act Capital (9.3%) and Marathon Asset (5.8%).
Kirbki (the Lego guys) actually owns this company, IPO-ed it and wants to take it private again. Quite interesting that on 23rd May, they disclosed a discussion with Value Act Capital about selling the company, and then an offer was made on 28th June.

https://www.ft.com/content/c7757e7a-7cd5...85092ab560

The context for this Merlin privatization looks quite different from what the ST writer is alluding wrt to Straco i would feel.

Mr Wu is almost 70 - But I also disagree that he lacks a succession plan as the ST writer says so. The fact that there are 2 Wu juniors who have worked for ~10-15years in the company, currently holding SVP positions in the company and are alternate directors in the BOD - smells of a strong succession plan to me? The Wu family will probably to continue to issue shares to themselves from the regular share buyback that they have been doing. Finally, i can't really fathom why would any Asian boss want to sell and then become an employee instead?

Of course, we can't rule out a PE-backed GO from the Wu family (can't help speculating with all the recent privatizations on-going). But it probably has to be done together with its SOE minority parent to hedge their political risks.

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