Straco Corporation

[Boon]

Singapore Flyer aside, what's the sustainability of its aquarium business?

one thing i dont understand is how come their aquariums seem to be getting increasingly popular?
i thought underwater attraction is sort of dying and unattractive anymore.
Haw Par's Oceanariums in Singapore and Thailand are seeing less and less visitors every year (even before the opening of SEA aquarium in RWS)... they also already closed down their aquarium in Chengdu back in 2011 due to years of loss-making...

From my observation, aquariums are still very popular in China especially among the kids

The world's largest aquarium was opened in April this years in Hengqin island of Zhuhai city - It certainly looks more impressive than Straco's aquariums.

How much impacts would it have on Straco's aquariums ?

(not vested)
________________________________________________________________________________________________________________

Chimelong Ocean Kingdom, World's Largest Aquarium, Opens In China

The Huffington Post | By Lisa_Miller
Posted: 04/03/2014

http://www.huffingtonpost.com/2014/04/03...77094.html

Chinese aquarium opens as world's largest

By Claudine Zap
April 4, 2014

https://travel.yahoo.com/blogs/compass/c...56767.html

if that's the case why did Haw Par's aquarium in Chengdu fail so badly?

i guess the one in Zhuhai won't be a threat at all since it's miles away...

Zhuhai is not really that far away from Xiamen.

As to Haw Par's Chengdu aquarium, from AR2011, it was closed down because of planning/land use issue

" The oceanarium in Chengdu ceased operations in the last quarter of 2011 after suffering from two years of losses. Developments in the immediate neighbourhood resulting from changes in the local district government’s plans on land use impacted the oceanarium’s viability."

(not vested)

[cfa]

Believe the ongoing anti graft campaign will hit them badly to a certain extend. The SOEs will reduce such spending.

Huh? what has it got to do with aquarium visits?

Many Enterprises there buy tickets in bulk as perk for their staff. Now many have cut down spending on perks.

[piggo]

Don't think it's related to anti graft campaign or the actual impact (how many visitors are from SOEs?), but I know at least one major SOE still providing perks like annual movie tickets etc for their staff.

[zerobeta]

hmmm yes i think in the foreseeable future (next 3-5 years) they still can grow their visitor number... but i dont think it's gonna be a sustainable increase....sooner or later it will plateau out... china is big, sure, but attractions/ competitors may also come, starting from Disney in 2015 (this really can be a strong double-edged sword, Disney price is quite expensive, perhaps around 235 RMB, SOA is also not cheap at 160 RMB, so tourists may have to cut either one)...

but in the meantime i think we still can see some enjoyable growth... but at current PE most likely it's been priced in.... the upside will depend on SG Flyer, which we dont have any edge at all...

[Jacmar]

There is a positive article on Straco and the Flyer with this week's Edge mag. Some insightful info. All investors and would be investors should read it.

[Nick]

SINGAPORE FLYER: Some issues tackled, 'enormous upside' ahead

http://www.nextinsight.net/index.php/sto...lies-ahead-

(Vested)

[Nick]

1) More than 8.8 million tourists flocked to the city during the weeklong National Day holiday — a year-on-year increase of 15.8 percent, officials said Tuesday.

http://www.ecns.cn/2014/10-08/137246.shtml

2) An article dated last month reported some visitor numbers to SOA - http://www.ecns.cn/2014/09-15/134425.shtml

3) SGD/CNY rates have weaken in this quarter substantially. The forex losses Straco incurred in 1H 14 is likely to be recoup in 3Q 14.

Looking forward to 3Q 14 results. While Singapore Flyer has been the talk of the month, the aquariums in China are still the main driver behind Straco. Without maintaining its strong growth, I don't think Straco will be able to continue trading at this valuation.

(Vested)

[CityFarmer]

The news report might be relevant to Straco now, after the Flyer acquisition.

(not vested)

Visitors to Singapore dip 6% in second quarter: STB

SINGAPORE – Tourist spending and visitor arrivals registered a dip in the second quarter this year, according to the latest tourism sector performance report by the Singapore Tourism Board (STB) released today (Oct 15).

Visitor arrivals dropped by 6 per cent on-year to 3.6 million visitors, according to STB.

Tourism receipts for the quarter were estimated to be S$5.6 billion, which translated to a 3 per cent drop in an year-on-year comparison. The report attributed the decline to a fall in shopping expenditure by tourists from China, Malaysia and Indonesia.

Of all the components identified, Shopping recorded the weakest showing in the second quarter, dipping 19 per cent on-year to S$957 million.

The Sightseeing, Entertainment and Gaming component showed the strongest growth, registering a 12 per cent increase to S$1.47 billion, the largest in a year-on-year comparison.

In the second quarter as well, international visitor arrivals for the quarter showcased a 6 per cent decrease for the quarter to 3.6 million visitors, said STB

http://www.todayonline.com/singapore/int...uarter-stb

[greengiraffe]

http://www.businesstimes.com.sg/governme...nd-quarter

The news report might be relevant to Straco now, after the Flyer acquisition.

(not vested)

Visitors to Singapore dip 6% in second quarter: STB

SINGAPORE – Tourist spending and visitor arrivals registered a dip in the second quarter this year, according to the latest tourism sector performance report by the Singapore Tourism Board (STB) released today (Oct 15).

Visitor arrivals dropped by 6 per cent on-year to 3.6 million visitors, according to STB.

Tourism receipts for the quarter were estimated to be S$5.6 billion, which translated to a 3 per cent drop in an year-on-year comparison. The report attributed the decline to a fall in shopping expenditure by tourists from China, Malaysia and Indonesia.

Of all the components identified, Shopping recorded the weakest showing in the second quarter, dipping 19 per cent on-year to S$957 million.

The Sightseeing, Entertainment and Gaming component showed the strongest growth, registering a 12 per cent increase to S$1.47 billion, the largest in a year-on-year comparison.

In the second quarter as well, international visitor arrivals for the quarter showcased a 6 per cent decrease for the quarter to 3.6 million visitors, said STB

http://www.todayonline.com/singapore/int...uarter-stb

[Nick]

The Board of Directors of Straco Corporation Limited (“the Company”) are pleased to advise that the Company will be releasing the financial results of the Company and the Group for the Third Quarter and the 9 months ended 30 September 2014 on Friday, 14 November 2014, after trading hours.

(Vested)