Kingsmen Creatives - RHB Invest 2017-12-27: Ceasing Coverage

Kingsmen Creatives - RHB Invest 2017-12-27: Ceasing Coverage KINGSMEN CREATIVES LTD 5MZ.SI

Kingsmen Creatives - Ceasing Coverage

  • We are ceasing coverage on Kingsmen Creatives due to internal resource reallocation, coupled with the low institutional interest and trading liquidity of the stock. 
  • Our last recommendation on the stock was a BUY with TP of SGD0.75.



Integrated communications, design and production group. 

  • Kingsmen Creatives (Kingsmen) provides interior fit-out services for high-end brands such as Tiffany, Dior, Swarovski, Guess, Abercrombie & Fitch, and Gucci. 
  • In recent years, softening demand for high-end products, coupled with competition from e-commerce have led to smaller project sizes and weakening margins at Kingsmen’s retail interior segment.
  • However, the group has remained tenacious and ventured into other opportunities including affordable luxury retail, fast fashion retail, travel retail, corporate interior and food & beverage segments. This should mitigate the negative impact from smaller project sizes in the high-end space but margins are still likely to be softer.


Exhibitions and thematic division continue to see healthy demand. 

  • The group has already secured a line-up of projects and attractions. 
  • Moving forward, the group has plans to combine its strengths in the interior and thematic divisions to come up with new entertainment concepts with large franchise names. This may be a potential catalyst for its share price once materialised.




Juliana Cai RHB Invest | http://www.rhbinvest.com.sg/ 2017-12-27
RHB Invest SGX Stock Analyst Report CEASE Maintain BUY 0.750 Same 0.750



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