The 2Q results deserve applause. Look at the 22% jump in visitors to Straco's aquariums. Thus revenue rose 20%. We should not be concerned that Profit rose only 7.4% -- this was due to the stronger SGD vs RMB.
Straco strong quarter downplayed by forex loss
2Q14 revenue surged 20% yoy as the combined visitor arrivals at Shanghai Ocean Aquarium and Underwater World Xiamen rose by a stellar 22% yoy, exceeding expectations of +10% yoy growth. Another positive is that operating expenses (-4% yoy) were managed well, as the decrease in fixed costs (c.80% of operating expenses) outpaced the growth in variable costs
However, the operational efficiency gains were downplayed by admin expenses (+142% yoy), which continued to be hit by forex losses as the Rmb depreciated further against the S$. Excluding forex losses, PBT would have grown by 30% yoy.
Some selling pressure on Straco just as I expected and had present good buying opportunity. Price weakness will mirror after 1Q 2014 result as weak holders will cash out. Straco is still on the growth path and fundamentally there is no change. Exchange loss is only one-off. As long as Straco on the growth path and fundamentally there is no change, I still believe Straco growth story.
CIMB Maintain Add - target price rises to S$0.96 after tweak FY14-16 EPS forecasts. Possible re-rating catalysts are potential acquisition of a tourism asset in Asia, better capacity utilisation and potential ticket price revisions.
Hi GoRiLaz7028, I have been monitoring Straco in 2013. It was only in June 2013 that I started buying Straco on price weakness. (See my post on 25/6/2013). If you read my earlier post you'll know why I'm serious on Straco. My hightest purchase price is 52 cts. My average is about 40 cts. Posted on 25/6/2013
Bought Straco yesterday @ 28.5cts
Bought Straco today @ 28cts
At this price, yield of about 4.5% not bad can sleep well.
Will buy again on further price weakness @ 25cts.
Posted on 29/72013
Straco Corporation Limited is a Singapore developer, operator and investor of premier attractions and tourism-related projects in China. Its businesses include the operation of Shanghai Ocean Aquarium, Underwater World Xiamen, The Lixing Cable-Car, and production of entertainment shows.
The company is highly free cash-flow generative and thus, it has paid consistently increasing dividends over the past six years. Last year, Straco paid a gross dividend of 0.75 cents per share and a special dividend of 0.5 cents per share, giving a total payout of 1.25 cents per share.
The company is valued at around 13 times earnings and its dividend yield is 2.5%, excluding the special dividend. The yield jumps to 4.2% if we the special dividend is included.
Posted on 7/8/2013
Straco 2Q/1H 2013 - Good Result
2nd Quarter 2013 profit margin increased from 44% to 49%
1st Half 2013 profit margin increased from 35% to 49%
With profit margin increasing & last done at 30 cts and yield of over 4% is real bargain.