Kingsmen Creatives 3Q2019 Net Profit Tumbled 93%

Nowadays, when I thought of Kingsmen Creatives, they remind me of NERF. This is because the NERF Action Xperience (“NAX”) Arena is open at Marina Square on 4th October 2019. Spanning over 18,000 square feet in Marina Square, the world’s first NAX arena is an edutainment-inspired Family Entertainment Centre designed to encourage active play and teamwork.

Now, back to Kingmens Creatives 3Q2019 financial results. I thought my eyes was playing a trick on me. Revenue fell slightly by 1.2% to S$90.85 million. However, net profit fell by a whooping 93% to S$115,000.

3Q2019 Financial Results

3Q2019

(S$’000)

3Q2018

(S$’000)

Change
Revenue 90,847 91,975 (1.2)%
Gross profit 19,304 18,740 3.0%
Net profit 115 1,632 (92.95)%
Earnings Per Share (EPS) (cents) 0.06 0.82 (92.68)%

Kingsmen Creatives is made up of four business divisions. They are the Exhibitions and Thematic division, Retail & Corporate Interiors division, Research & Design division and Alternative Marketing division. Below is a brief summary of revenue from each division.

  • The Exhibitions & Thematic division registered a revenue of S$124.9 million in 9M 2019, an increase of S$21.5 million or 20.8% from S$103.4 million in 9M 2018.
  • The Retail & Corporate Interiors division recorded a revenue of S$122.8 million in 9M 2019, an increase of S$4.9 million or 4.1% compared to S$117.9 million in 9M 2018.
  • The Research & Design division achieved a revenue of S$12.0 million in 9M 2019, an increase of S$1.6 million or 15.3% from S$10.4 million in 9M 2018.
  • The Research & Design division achieved a revenue of S$12.0 million in 9M 2019, an increase of S$1.6 million or 15.3% from S$10.4 million in 9M 2018.

As of today, the share price has fell to S$0.46. Based on the historical dividend payout of S$0.025 cents and current share price of S$0.46, the current dividend yield is 5.43%. But of course, it is unknown if Kingsmen Creatives will continue to maintain its dividend payout.

With NAX just opening last month, I guess it will take some time to judge if the venture into NAX will take off. I foresee further pressure on the current stock price of Kingsmen Creatives. The current dividend yield of 5.43% sounds attractive for a small cap stock but the risk here is Kingsmen Creatives venture into Intellectual Property business such as NAX which can eat into its capital if the business venture doesn’t take off.

Kingsmen Creatives currently makes up 3% of my stock portfolio. We shall see if value can be unlocked in the future.

My Personal Analysis of Haw Par Corporation Limited

In my past few months screening for dividend stocks using Stocks Café, Haw Par Corporation Limited has always appeared in the list, providing a dividend yield of 8.104%. I have always known Haw Par as a multinational company and I co-relate Haw Par with the iconic Tiger Balm brand. Is this a dividend yield stock or 8.104% dividend yield is too good to be true?

I decided to do further research to check this out.

Business Overview

The best place to find out what the business for Haw Par Corporation Limited is about is to check out the company’s website. Haw Par Corporation Limited is a Singapore grown multinational group that was listed on the Singapore Stock Exchange since 1969. They have businesses in Healthcare, Leisure, Property and Investments. Read More

My Personal Analysis of IREIT Global

I was casually screening for office REITs to add to my stock portfolio when I came across IREIT Global. Based on what I read about, the dividend yield of IREIT Global was estimated to be as high as 8%. The thought of “Is it really true?” came across my mind as most of the dividend yields of the REITs that I know of has dividend yield ranging from 4.7% to 5.5% given the current run up in most REIT prices which in turn cause the dividend yield to decline.

On 30 April 2019, IREIT announced the introduction of a new strategic investor, City Developments Limited (CDL), which has acquired a 50% stake in the Manager and 12.4% stake in IREIT units.

In summary, IREIT Global is the first Singapore-listed real estate investment trust (REIT) established with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe that is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets.

IREIT Global initial offering was S$0.88 back in August 2014. Read More