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
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http://www.rhbinvest.com.sg/
2017-12-27
RHB Invest
SGX Stock
Analyst Report
0.750
Same
0.750
