My post on 15th Febuary 2014:
Straco 9 months profit S$28.47m, EPS 3.38 cents. Full year result will be out on 28/2/2014. EPS most probably about 4 cents per share. If Straco pay out dividend of 50% that gives 2 cents per share. Trading at 48 cents dividend yield of 4.16%
Straco at 48 cents is trading at prospective PE of 12x. If S$100 million cash, take that off its market cap of S$400 m, and you get S$300m. So its business is being valued at $300 million, or less than 10x earnings. That makes it cheap and don't forget, every year it can generate more free cashflow in excess of S$10 million a year and zero debt. With regards to QE3 tapering, Straco is an attractive stock. Vested
Straco full year EPS of 4 cts and dividend of 2 cts just as I have projected.
For Full Year:
Revenue increased by 32%
Operation Profit increased by 67%. Operation profit margin increased from 55% to 69%
Net profit increased by 72.8% Net profit margin increased from 37% to 49.6%
Cash increased from S$96m to S$108m.
Straco also paid deposit of S$21.2m for bidding of a project.
Straco net profit margin increaced by another 12.6% to nearly 50%, cashflow increased by over S$30m (include deposit of S$21.2m) and dividend yield of more than 4% is truely a GEM.
Truly outstanding set of results ! The Group generated strong growth in operational statistics like visitor numbers (up 10 - 33% for all assets) and financial figures such as revenue (up 32%) and margins. The Group generated record high FCF exceeding $36 million which translates to 4.2 cents / share.
Unfortunately, no details was given on the progress of the tender for the project they are bidding for in Asia. According to the CIMB report, this project is valued > $100 million highlighting the potential for inorganic growth in the future assuming it is secured. Net cash (including deposit) was close to $130 million. The Group has kept to its track record of raising dividends annually and the current 2 cents proposed translates to a dividend yield exceeding 4%.
Straco reported net profit growth of 73% to SGD34m for FY13 on the back of increased visitation across all its three attractions.
Visitor numbers to each of its three attractions saw double-digit growth ranging from 10-33%, driving a 32% increase in top-line to SGD73m.
Straco has a cash-generative business model coupled with strong pricing power, resulting in pretax margin of 68% and a cash pile of SGD130m.
Straco expects to benefit from rising domestic travel as the Chinese government looks to balance its export-driven economy with higher domestic consumption, driving steady growth across its tourism assets.
The company has raised its full year dividend from 1.25cts/share for FY12 to 2cts/share for FY13.
It is in the process of evaluating a bid for a new tourism asset that could further fuel its earnings growth.
Backing out its cash, the stock is attractively priced at 8.5x FY13 P/E.
The 2 reasons below give me the full confidence to increased my holding today at 49 cts & 49.5 cts.
1. Straco net profit margin in Fy 2013 increaced by another 12.6% to nearly 50% which is the best stock listed in SGX.
2. Straco net profit compounded at 40% from 2009-2013 on the back of price hikes and rising visitor numbers.
Revenue:
2008 = SGD 32.3m
2013 = SGD 72.4m
Revenue over 6 years increased by 125%
Net Profit:
2008 = SGD 7.7m
2013 = SGD = 35.4m
Net Profit over 6 years increased by 359%
Net profit margin increased from 23.8% to 48.6%
Dividend:
2009 = 0.375 cts
2010 = 0.5 cts
2011 = 0.75 cts
2012 = 0.75 cts
2013 = 1.25 cts
2014 = 2 cts
Dividend yearly paid out over 6 years increased by 433%
Straco over 6 years revenue increased by 125%, net profit increased by 359%. net profit margin increased from 23.8% to 48.6% and best of all dividend yearly paid out increased by 433%. Straco net profit compounded at 40% from 2009-2013 on the back of price hikes and rising visitor numbers.
Being debt free & able to increased its cashflow to about SGD 130m, Straco is an outstanding stock which is classified as "Perpetual Dividend Raisers". Share price at 50 cts backing out its cash, the stock is attractively priced at 8.5x FY13 P/E plus dividend yield of 4% is one stock to hold for long term.
Vested
The limiting factor to Straco's 2 aquariums is the fixed capacity for visitors. At some point, it gets crowded and the revenue/profit cannot grow. Are they still far away from those limits?
