Kingsmen Creatives

[Forestchan]

Just back from the AGM, Mr Bendict Soh said that the damages not only included the TVs.
It also consists of other audio, visual equipments. He added that most of their big projects are insured. Unfortunatly, this project is not.

[yeokiwi]

Just back from the AGM, Mr Bendict Soh said that the damages not only included the TVs.
It also consists of other audio, visual equipments. He added that most of their big projects are insured. Unfortunatly, this project is not.

Thanks Forestchan, for the update.
Any idea whether they are optimistic over the appeal? I suppose lawsuit of such kind is not going to be easy for foreign-owned company.

[Forestchan]

You're welcome. Yes, you are right. The odds are pretty much against kingsmen.

[brattzz]

why never buy project insurance? :O
trying to cut cost or just plain over-sight? :O

[yawnyawn]

Kingsmen released its 1Q 2014 today (14 May 2014)
http://infopub.sgx.com/FileOpen/Kingsmen...eID=296989

Company recorded revenue of S$54.0 million compared to S$42.6 million, yoy growth of 26.8%. Biggest increase came in the Retail & Corporate Interiors with an increase of S$9.1 million. However, overall gross profit margin decreased from 30.7% in 1Q 2013 to 27.2%.

PBT after adding back S$1.5 million due to one-off provision for costs and damages in relation to a law suit in China comes up to S$2.56 million compared to S$2.47 million in 1Q 2013, yoy growth of 3.6%. Not very impressive.

Company stated that they expect FY2014 to be a good year for the Group. I am looking forward to see how they will perform in this coming FY and if a higher dividend will be declared.

[dydx]

Since IPO in 2003, Kingsmen's business has been operating like a steady ship manned by a super crew headed by 2 great captains. Sooner or later, the full value of this well-established low-capital intensive service business with a growing regional footprint will be realised likely by way of of a trade sale and GO, when the 2 founders and controlling shareholders retire. Meanwhile, part-owners and other stakeholders of this great ship can continue to enjoy a great ride as the business grows further.

[yogi]

Since IPO in 2003, Kingsmen's business has been operating like a steady ship manned by a super crew headed by 2 great captains. Sooner or later, the full value of this well-established low-capital intensive service business with a growing regional footprint will be realised likely by way of of a trade sale and GO, when the 2 founders and controlling shareholders retire. Meanwhile, part-owners and other stakeholders of this great ship can continue to enjoy a great ride as the business grows further.

Looking at rear mirror view since IPO, indeed founders are great managers of the company and steered the company on consistent profitable trajectory.

However since its best profitable year of 2007 (earning growth of 89%, Pretax Margins 8.5%), its growth rate has been slowing consistently with 2% growth in 2013. Margins are also under pressure for last 3-4 years. This could be sign of intensifying competition and the company is loosing market share??

So how would the front mirror look like from business point of view and would it sustain its moat and profitability?

[yawnyawn]

Since IPO in 2003, Kingsmen's business has been operating like a steady ship manned by a super crew headed by 2 great captains. Sooner or later, the full value of this well-established low-capital intensive service business with a growing regional footprint will be realised likely by way of of a trade sale and GO, when the 2 founders and controlling shareholders retire. Meanwhile, part-owners and other stakeholders of this great ship can continue to enjoy a great ride as the business grows further.

Looking at rear mirror view since IPO, indeed founders are great managers of the company and steered the company on consistent profitable trajectory.

However since its best profitable year of 2007 (earning growth of 89%, Pretax Margins 8.5%), its growth rate has been slowing consistently with 2% growth in 2013. Margins are also under pressure for last 3-4 years. This could be sign of intensifying competition and the company is loosing market share??

So how would the front mirror look like from business point of view and would it sustain its moat and profitability?

I think 2013 was generally a weak year for the companies in this industry. For example, Pico FY13's revenue and EBITDA was 14% and 7% lower y-o-y due to weaker contribution from exhibition and themed environment segments. I am quite satisfied for Kingsmen to eke out a 2% topline growth in a weak year.

I am expecting a better FY14 for both Kingsmen and Pico.

As at 13th May 2014, Kingsmen has secured contracts of approximately S$201 million, of which S$179 million is expected to be recognized in FY2014.
This is much higher than the figures given in May 2013 where Kingsmen was awarded contracts of approximately S$166 million, of which S$137 million was expected to be recognised in FY2013.

Pico
[Image: x4vo8Lv.png]

Kingsmen
[Image: 78cZW68.png]

[yawnyawn]

Contracts awarded / to be recognised in FY

1Q14 (13th May 2014) ----- S$201 million, S$179 million

1Q13 (14 May 2013) ------ S$166 million / S$137 million
2Q13 (13 August 2013) --- S$294 million / S$232 million
3Q13 (13 November 2013) - S$351 million / S$293 million

1Q12 (9 May 2012) ----- S$167 million / S$ 167 million
2Q12 (10 August 2012) -- S$238 million / S$238 million
3Q12 (5 November 2012) - S$289 million / S$274 million

1Q11 (5 May 2011) ------ S$154 million / S$138 million
2Q11 (10 August 2011) -- S$197 million / S$178 million
3Q11 (9 November 2011) - S$254 million / S$229 million

1Q10 (12 May 2010) ----- S$133 million / S$119 million
2Q10 (11 August 2010) --- S$187 million /S$173 million
3Q10 (9 November 2010) - S$233 million / S$215 million

1Q09 (11th May 2009) ---- S$167 million / S$147 million
2Q09 (12th August 2009) - S$208 million / S$188 million
3Q09 (10 November 2009) - S$243 million / S$219 million

I note that the value of contracts won as of 13 May 2014 is the highest when comparing against the past 5 years' 1Q reports. Will be interesting to see in the next quarter report if Kingsmen manages to increase their order book above 2Q13 level(294m/232m) to confirm that FY14 will be a good year for them.

[corydorus]

Hi yawmyawm, this is interesting. Were this summary obtained from somewhere or you do your homework ?