DESIGN STUDIO: A cheaper alternative to Kingsmen Creative?

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This article was recently published in the Let's Get Rich Together blog, and is reproduced with permission.

350bedroomreflections Design Studio is Singapore's leading furniture manufacturer, interior fitting-out and product specialist. They serve the residential, commercial and retail properties.

DS is slightly different from the more popular Kingsmen Creative which specialises in Corporate/Retail Interiors, Exhibitions/Events, Theme parks & Museums.

3 Business Segments

Residential - supply and install products like Kitchen cabinets, vanity cabinets, wardrobes etc.
Commercial - Interior fitting out to Hospitality and Commercial developments
Distribution - Distribute imported brands in Singapore

Notable clients

Trump Tower, Las Vegas
Burj Khalifa, Dubai
Resorts World Sentosa
Marina Bay Sands
City Developments
Capitaland
Keppel Land - Reflections at Keppel Bay
GoucoLand Limited
Far East Organisation
South Beach Mixed Development
Westin Hotel, Marina Bay

These big names bodes well for DS' reputation, helping them to gain more clients in the future.

Valuations
Design Studio
PE ratio = 6.8
PB ratio = 1.2
Dividend yield = 11.8% (more on that later)

Kingsmen Creative
PE ratio = 11.5
PB ratio = 2.0
Dividend yield = 4.0%

Past results

rev pbt margin7.15

bs.div7.15

orderbook7.15

order7.15

Comments

#3 Dane 2015-08-09 16:36

Lotus: I think CEI Contract Mfrg deserves a higher priority. Just look at the shocking increase in interim dividend. :)

#2 lotustpsll 2015-08-01 10:40

I have included Design Studio into my high yield list following its 1H results which were released last evening. Key notes:-
- marginal Qtr profit growth against corresponding 2Q14
- order books remain solid
- interim dividend per share raised
Performance is impressive considering slower market conditions.

#1 lotustpsll 2015-07-29 14:44

Good article, well articulated.

Am vested earlier in view of its established business model, rising order books and strong FCF and financial position. A quality stock and one should hold long term as high yield play..

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DESIGN STUDIO: A cheaper alternative to Kingsmen Creative?

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