Kingsmen Creatives

[brattzz]

expected as retails are down, both in sg n china...

[mrkoh]

Saw that in the latest half net cash flow from operating activities was (2,354) vs 7,368 a year ago.

Should this be a cause of concern?

Perhaps one should take note of this new concern when investing in this.

[vingaard]

If it due to the lumpy nature of the projects, then it is not an issue. Management has guided for a reasonably good year so I would watch and see what happens over the next quarter.

Vested


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[Fish Head]

The profit reduction is due to employee benefit and depreciation (JB new plant?) Anyone has a chance to travel to JB to see if their plant is still building or already in operation? If in operation then it shall show some benefit in coming quarter, if still building then it will have to suffer for a few more quarters.

The negative cash flow is almost purely due to $10m less cash form WIP to customer. For me it means less business WIP or customer will pay next quarter.

It brings me to the actual thing I am worrying. It is the order book. Only 262M compare with 321M a year ago. It will mean not so good 3rd and 4th quarter. The business will not be as good as last year for sure. Likely something similar to 2013 or 2012.

[corydorus]

I think for sure the luxury segment is down. We just have to look at the tourist, Casino, City Malls to tell. They have recognized that and doing something to it. Whether is good enough is to be seen but i am optimistic.

The employees benefits need to tone down some what with poorer market condition and as i remembered they have similar item in previous quarter. This is especially if business is shifting to new segment (Assuming lower margin) and the skill set mix and requirement maybe different. Is the business going some radical change that the management has to do this again and with the same tool ?

Vested

[corydorus]

Saw that in the latest half net cash flow from operating activities was (2,354) vs 7,368 a year ago.

Should this be a cause of concern?

Perhaps one should take note of this new concern when investing in this.

There 2 statements i have found. Gross amount due from customers for contract work-in-progress (4,038) which is about 1.4M more YOY. Trade and other payables 3,175 about 4M lower YOY. This translate Paying suppliers more promptly and collecting from customer later if i understand correctly.
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Add another statement i left out early which is Trade and other receivables (e) 74,293 which are lesser by 18M.
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KMC is not a fly by night company to be concern with and maybe a reflection of changing business needs.

[pianist]

seems gloomy business market ahead..why is that

[nitro]

Extracted from the NewsRelease Q2 2015

Outlook for 2015 and Beyond
The Group expects the second half of the year to be better, given the strong pipeline of contracts and demand for the Group’s services. As at 31 July 2015, the Group has secured contracts of approximately S$262 million, of which approximately S$240 million is expected to be recognised in FY2015. Barring unforeseen circumstances, the Group expects FY2015 to be a reasonably good year.

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Revenue
1st Half FY2015 - S$134m
Assuming 2nd Half FY2015 - S$240m (recognized)
Total 2015 - S$374m which is better than FY2014

[dzwm87]

Extracted from the NewsRelease Q2 2015

Outlook for 2015 and Beyond
The Group expects the second half of the year to be better, given the strong pipeline of contracts and demand for the Group’s services. As at 31 July 2015, the Group has secured contracts of approximately S$262 million, of which approximately S$240 million is expected to be recognised in FY2015. Barring unforeseen circumstances, the Group expects FY2015 to be a reasonably good year.

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Revenue
1st Half FY2015 - S$134m
Assuming 2nd Half FY2015 - S$240m (recognized)
Total 2015 - S$374m which is better than FY2014

The disclosure meant new contract wins. S$240mln expected revenue probably has some recognized in the first 2 quarter. You can use your method on previous years and it will be wrong.

IMO, revenue is not a concern. Lower margin from trade exhibition while higher margin retail fit-out decline will add pressure to bottom line.

[(cy)]

Sharp drop to 0.85 today! What's brewing?

further to the decline in top and bottom line, RHB has downgraded the counter to a "Sell" with a TP of S$0.78 pegged to a forward P/E (FY2015) of 10x.