Kingsmen Creatives

[Drizzt]

if we talk about moat its pretty narrow.relationship,workmanship,project prompt delivery are its differentiating factor, but any new entrant or big europe boy can come over and offer the same

[yeokiwi]

if we talk about moat its pretty narrow.relationship,workmanship,project prompt delivery are its differentiating factor, but any new entrant or big europe boy can come over and offer the same

This point had been brought out several times since '05.
But, we have seen no new entrants or erosion in Kingsmen revenue since 05.
Narrow moat but nobody wants to snatch the pie?? *scratch head*

[natnavi]

if we talk about moat its pretty narrow.relationship,workmanship,project prompt delivery are its differentiating factor, but any new entrant or big europe boy can come over and offer the same

This point had been brought out several times since '05.
But, we have seen no new entrants or erosion in Kingsmen revenue since 05.
Narrow moat but nobody wants to snatch the pie?? *scratch head*

To me, if a company does not have a wide moat to differentiate itself from others, a company would need to provide customer services that are above and beyond what other companies are willing to provide.

In KC's case, looking at the quality of their work, I do believer that KC had been able to continually over deliver their promises to their customers. Else there would not be any customer loyalty.

And the reason why no one wants to snatch the pie? I believe like any relationships, customer relations takes time. Once the customer had experience good quality service from the company, there would be no reason for the customer to change service provider (bearing that there has not been any changes to the customer's financial situation and etc.)

(vested; hence, you may say I may be a little bias when it comes to judging KC's quality of work )

[FFNow]

but any new entrant or big europe boy can come over and offer the same

Any new entrant or "big europe boy" may be able to offer the same but the question is the price. Can they offer the same quality at such a low price? I remember during 2010's AGM, Benedict said that Kingsmen offers high quality works at Asian prices or something along those lines. Also during 2011's AGM, Ben said that, Hans Bruder, Managing Director of Octanorm (a huge company in the design fraternity), told him, “No other company in the world has the same breadth of services as Kingsmen”. Kingsmen's moat might not be obvious but lies in the close customer relationship which takes time to build. Any new entrant or "big europe boy" will take time to forge this keen relationship so this bodes well for Kingsmen =)

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Delta Lloyd quote their Fund Manager, Gillian Wu. I do think the bit on seasonal re-fits is a bit overdone! (in Singapore?!)

Actually, it's true that "Shops are normally refurbished/redecorated every three years. Additionally, twice a year, small adjustments are required in to the stores for the winter and summer seasons.". Shops, especially the high-end ones, have to keep up and refurbish their stores frequently to satisfy the customers' visual senses. This was also confirmed by Andrew Cheng, Group GM, previously.

[RBM]

Reference yesterday's exchange of forummers views regarding Kingsmen and "economic moats". Personally speaking, I believe the critical issue for Kingsmen's continued success (i.e. its de facto moat) is to retain its key staff, and by that I mean not just its very highest paid help. Kingsmen's human capital and its demonstrable ability to pull various disparate aspects of the projects it undertakes together is what will continue to differentiate it from its competitors.

If we ever read about mass defections of Kingsmen staff, that is a time for those vested to become more than a tad worried. I recall that Kingsmen lost a PRC based exceutive and another senior individual some months back but I haven't heard of bunches of Kingsmen people moving on....... so far.

Just my two cents.

Vested

[FFNow]

Reference yesterday's exchange of forummers views regarding Kingsmen and "economic moats". Personally speaking, I believe the critical issue for Kingsmen's continued success (i.e. its de facto moat) is to retain its key staff, and by that I mean not just its very highest paid help. Kingsmen's human capital and its demonstrable ability to pull various disparate aspects of the projects it undertakes together is what will continue to differentiate it from its competitors.

If we ever read about mass defections of Kingsmen staff, that is a time for those vested to become more than a tad worried. I recall that Kingsmen lost a PRC based exceutive and another senior individual some months back but I haven't heard of bunches of Kingsmen people moving on....... so far.

Just my two cents.

Vested

True that.

Kingsmen's human capital is essential to the company doing well. That is why Benedict believes in giving shares as rewards to outstanding employees who have delivered their targets set each year. This keeps them committed to the company. Overseas employees are given Kingsmen shares too and this keeps them committed to the company. Shares are taken from treasury shares.

Kingsmen also organises "makan" sessions in the HQ for designers and has cohesion activities as well.

[Jacmar]

Reference yesterday's exchange of forummers views regarding Kingsmen and "economic moats". Personally speaking, I believe the critical issue for Kingsmen's continued success (i.e. its de facto moat) is to retain its key staff, and by that I mean not just its very highest paid help. Kingsmen's human capital and its demonstrable ability to pull various disparate aspects of the projects it undertakes together is what will continue to differentiate it from its competitors.

If we ever read about mass defections of Kingsmen staff, that is a time for those vested to become more than a tad worried. I recall that Kingsmen lost a PRC based exceutive and another senior individual some months back but I haven't heard of bunches of Kingsmen people moving on....... so far.

Just my two cents.

Vested

True that.

Kingsmen's human capital is essential to the company doing well. That is why Benedict believes in giving shares as rewards to outstanding employees who have delivered their targets set each year. This keeps them committed to the company. Overseas employees are given Kingsmen shares too and this keeps them committed to the company. Shares are taken from treasury shares.

Kingsmen also organises "makan" sessions in the HQ for designers and has cohesion activities as well.

seriously do you guys think shares/options keeps employees loyalty nowadays. if there is a better offer then your existing employer you quit and go. what more if you are a truly high flyer, the new employer will even match and pay whatever stock options you may have vested.exceptions of course if your company is a facebook.

[RBM]

You and I agree on this one Jacmar - staff retention is critically important for Kingsmen and stock options/grants are not the air-tight elixia many people think they are. So far - I emphasise so far - Kingsmen seems to have done a good job in retaining its key people.

Vested

Reference yesterday's exchange of forummers views regarding Kingsmen and "economic moats". Personally speaking, I believe the critical issue for Kingsmen's continued success (i.e. its de facto moat) is to retain its key staff, and by that I mean not just its very highest paid help. Kingsmen's human capital and its demonstrable ability to pull various disparate aspects of the projects it undertakes together is what will continue to differentiate it from its competitors.

If we ever read about mass defections of Kingsmen staff, that is a time for those vested to become more than a tad worried. I recall that Kingsmen lost a PRC based exceutive and another senior individual some months back but I haven't heard of bunches of Kingsmen people moving on....... so far.

Just my two cents.

Vested

True that.

Kingsmen's human capital is essential to the company doing well. That is why Benedict believes in giving shares as rewards to outstanding employees who have delivered their targets set each year. This keeps them committed to the company. Overseas employees are given Kingsmen shares too and this keeps them committed to the company. Shares are taken from treasury shares.

Kingsmen also organises "makan" sessions in the HQ for designers and has cohesion activities as well.

seriously do you guys think shares/options keeps employees loyalty nowadays. if there is a better offer then your existing employer you quit and go. what more if you are a truly high flyer, the new employer will even match and pay whatever stock options you may have vested.exceptions of course if your company is a facebook.

[Musicwhiz]

I thought there were so many pages of discussion on Kingsmen and their staff retention policies as well as their competitive moat some time back? Forumers need only browse through this entire thread slowly to find them.

Since I am vested, I will definitely be biased and hence I will not contribute further to this discussion.

[RBM]

By its normal standards, trading volumes in Kingsmen's shares today were pleasingly high. 411,000 Kingsmen shares traded, with a few "meaty volume" trades done at the S$ 0.75 level (381,000 shares) and 30,000 shares changing hands at the S$ 0.755 level.

At today's closing price of S$ 0.75 and based on the last interim and final dividends, Kingsmen now trades on a dividend yield of 5.1/3%. I'm hoping we will see more than 2.5 cents as the final dividend come February next year - based on an expectation of a seriously good 2H 2012. Personally speaking, I still rate Kingsmen, given the quality and track record of its Management, as a buy.

Time will tell if those awaiting a share-price-pullback in order to initiate or add to their Kingsmen's holdings have missed out. Based on trading patterns today and over the last week or so, I sense someone is stake-building - i.e. picking up significant volumes.

Vested