Kingsmen Creatives

[keen]

I thought I like:
a. Its low gearing
b. Cash holding seems seems seems to be 0.33 cent per share (data from shareinvestor.com)
At current price, getting good margin of safety
I am new, look forward to comment, thank you very much
Not yet vested

[violinist]

Thread is quieter since dydx ceased coverage of this.

[dydx]

Thread is quieter since dydx ceased coverage of this.

I didn't know I have so many followers or admirers !

Just to put it in proper perspective, I guess most shareholders/investors who are familiar with Kingsmen as a company and as a stock would agree with me that the underlying pan-Asian group business is now very well established and managed. This can be easily ascertained by Kingsmen's steady business growth and profit track record over the last 5 years, as well as its steady dividend payout. Of course, we should be convinced that the intrinsic value of Kingsmen's group business will continue to increase over time, especially when the vast PRC market becomes a bigger factor. This is also evidenced by Kingsmen's share price trend…..
https://sg.finance.yahoo.com/q/bc?t=5y&s...1&c=%5ESTI
Without counting the return from Kingsmen's great dividends (which averaged $0.04/share in each of last 3 FYs), over the last 5 years the counter has outperformed the STI by some 50%, and by some 100% when compared against bigger archival PICO Holdings (listed in SEHK).

[Fish Head]

[Image: 9evyjyge.jpg]
Another element that I put my eyes on is the "new order won".
Note: I am well aware of the lumpiness, it is just one element out of many in the lattice.

Hi Ksir, where you get this table? Do you have Q2 figure? Thank you

[Fish Head]

Thread is quieter since dydx ceased coverage of this.

I didn't know I have so many followers or admirers !

Just to put it in proper perspective, I guess most shareholders/investors who are familiar with Kingsmen as a company and as a stock would agree with me that the underlying pan-Asian group business is now very well established and managed. This can be easily ascertained by Kingsmen's steady business growth and profit track record over the last 5 years, as well as its steady dividend payout. Of course, we should be convinced that the intrinsic value of Kingsmen's group business will continue to increase over time, especially when the vast PRC market becomes a bigger factor. This is also evidenced by Kingsmen's share price trend…..
https://sg.finance.yahoo.com/q/bc?t=5y&s...1&c=%5ESTI
Without counting the return from Kingsmen's great dividends (which averaged $0.04/share in each of last 3 FYs), over the last 5 years the counter has outperformed the STI by some 50%, and by some 100% when compared against bigger archival PICO Holdings (listed in SEHK).

Any idea why PICO is not doing well in this business but Kingsmen did? PICO is bigger player in this field, and Hong Kong is with closer link with China market.

[ksir]

[Image: 9evyjyge.jpg]
Another element that I put my eyes on is the "new order won".
Note: I am well aware of the lumpiness, it is just one element out of many in the lattice.

Hi Ksir, where you get this table? Do you have Q2 figure? Thank you

In fact I updated hours ago after the Q2 report is out.
[Image: epe4e7as.jpg]

Even with huge Kidzania project, the new order won is just comparable (a bit lower) to last year.
Nonetheless, backlog carry forward from last year adds to this year revenue. Hence the higher revenue.
Nonetheless, i am not really worry about the Top Line. It seems to be growing rather well.

The challenge seems to be in Profit Margin and hence bottom line (stagnant or lower).

[greengiraffe]

http://www.businesstimes.com.sg/premium/...n-20140815

PUBLISHED AUGUST 15, 2014
Provision for lawsuit hits Kingsmen
BYJAMIE LEE
leejamie@sph.com.sg @JamieLeeBT

KINGSMEN Creatives posted a 1.4 per cent year-on-year dip in second-quarter net profit, hit by a one-off provision linked to a lawsuit in China.
It was optimistic about its full-year results, with about S$321 million worth of contracts sewn up, and about 85 per cent, or S$278 million, expected to be recognised this year. Net profit for the three months ended June 30, 2014, stood at S$5.31 million, down from S$5.39 million a year ago. This translated to earnings per share of 2.74 Singapore cents, down from 2.80 Singapore cents.
Revenue was up 3.8 per cent at S$82.9 million. Excluding its alternative marketing segment, all of Kingsmen's divisions posted higher sales. Kingsmen's retail and corporate interiors division, its largest business segment, posted a 5.5 per cent increase in its sales to S$49.4 million.
Operating expenses for the second quarter increased 13 per cent to S$17 million. It made a S$1.5 million provision for costs and damages in relation to a law suit in China.

[Fish Head]

[Image: 9evyjyge.jpg]
Another element that I put my eyes on is the "new order won".
Note: I am well aware of the lumpiness, it is just one element out of many in the lattice.

Hi Ksir, where you get this table? Do you have Q2 figure? Thank you

In fact I updated hours ago after the Q2 report is out.
[Image: epe4e7as.jpg]

Even with huge Kidzania project, the new order won is just comparable (a bit lower) to last year.
Nonetheless, backlog carry forward from last year adds to this year revenue. Hence the higher revenue.
Nonetheless, i am not really worry about the Top Line. It seems to be growing rather well.

The challenge seems to be in Profit Margin and hence bottom line (stagnant or lower).

Good to see such a detail analysis.

[dydx]

Kingsmen is acquiring a freehold industrial property in Johore for MYR35.0m as a step forward in establishing a permanent manufacturing base and as the Group’s key manufacturing hub for the production of fixtures for international clients in Europe and the US…..
http://infopub.sgx.com/FileOpen/Kingsmen...eID=314528 [press release]
http://infopub.sgx.com/FileOpen/Acquisit...eID=314527 [announcement]
This investment is to enhance production capabilities to meet increasing demand for the Group's products and services around the world.

A very interesting article on Kingsmen's business…..
http://www.kingsmen-int.com/wp-content/u...ngsmen.pdf

[Muser]

While fundamentals like high ROE and low debt are attractive, I see foll. concerns

1. Low rev & profit growth over last 5years. <5% cagr
2. No compelling competitive differentiators, and perhaps low entry barrier

The Q is how can they accelerate growth and differentiate?