04 March 2014

Straco - Cash Cow Company Still - Mar 2014

Straco released the full year report last month. Below is short summary of Straco and my own data compilation.

No. Outstanding Shares843,739,580
Share Price0.50
Market Cap421,869,790
PE Ratio12.37
PEG Ratio0.1708
DPS (latest year)0.02
Dividend Yield4.00%
BPS (latest year)0.1907
PB Ratio:2.62

Income Statement

Net profit improved to S$35M on the back of revenue S$73M which is compared to S$20M and S$55M last year. Gross profit margin stands at 80% while net profit margin recorded an impressive result of 47%. EPS improved by 72% to 4.04 cents from 2.34 cents a year ago.

Balance Sheet

Equity attributable to owners of the company improved by 23% to S$161M from S$131M last year. The company has around S$108M cash which is enough for dividend distribution or business growth in future. As the debt level remains low (around 10% of total assets), I believe that the company has little credit risk.

Cash Flow Statement

The company managed to generate free cash flow for many years including year 2013 (S$34M) and 2012 (S$26M).

Company Comments
The Group is principally engaged in the development and operation of tourism-related attractions. Retail, food and beverage are auxiliary goods and services arising from the operations of the above facilities.

The Group has one reportable segment, as described below, which consists of the Group’s strategic business units which are managed separately. For each of the strategic business units, the Group’s Executive Chairman (“EC”) reviews internal management reports on a monthly basis. The following summary describes the operations of the Group’s reportable segment:

• Aquariums – Operation of aquatic-related facilities and tourist attractions, including dolphin and sealion performances. Retail, food and beverage are auxiliary goods and services arising from the operation of the above facilities.

Other operations include the operation of cable-car facility and show performances. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2013 and 2012.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Group’s EC. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

My Personal View
ROE of the company is now around 20% - 30%, which I think is quite impressive. As the company managed to generate free cash flow for many years, I believe the company would have little credit risk in managing working capital as well as capex needed for future business growth.

As this is a China-related company, the company is trading at around PE of 13X and enjoys around 4.00% dividend yield (including special dividend).


  • accelerated competition among theme park players especially Disney land in Shang Hai is currently under construction and it maybe tougher for the company to increase the average ticket selling price in future
  • depreciating renminbi against Singapore dollars and it would reduce the DPS indirectly
  • liquidity issue as the company is now trading at low volume
I would consider to buy the counter if the P/CF ratio is below 10X or around 40 cents. But if you are long term investors, you may do your own forecast (e.g. if long term growth rate is 10% for next 5 years and 5% after that, and discount rate is 15%, the fair value would be S$300M - S$400M etc). 

Related Posts:


  1. I have put Straco in my watch list recently ;-)

  2. Full service moving can be particularly advantageous on the off chance that you are physically unfit to deal with the effort of pressing, in the event that you have a full timetable and don't have room schedule-wise to pack, of on the off chance that you are moving away or out of the nation. moving companies near me

  3. eToro is the #1 forex broker for beginning and pro traders.

  4. This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. Value Engineering Services

  5. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. Great work financial management and budget preparation.

  6. In terms of correct repair of a institution, any Ohio Ersus Institution must view a number of management and business formalities. In comparison to some sort of California confined culpability corporation, LLC services

  7. Awesome article, it was exceptionally helpful! I simply began in this and I'm becoming more acquainted with it better! Cheers, keep doing awesome! 소액결제 현금화 방법

  8. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. 소액결제 현금화 방법

  9. A merchant account can help your business in many ways. By accepting credit cards, you'll open yourself up to a whole new population of customers, and you'll make your business more attractive to the customers you currently serve, too. Cash Discount Merchant Processing

  10. Generally I don't learn post on blogs, but I would like to say that this write-up very pressured me to try and do it!
    Your writing style has been surprised me. Thanks, very great post.
    cash for cars brisbane

  11. I've been surfing online more than 2 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my view, if all webmasters and bloggers made good content as you did, the internet will be much more useful than ever before.
    free car removal

  12. Excellent post, its amazing that its necessary really but it is. I think Iarfhlaith's point about bigger buttons attracting more comments is very true. I'm subtle that way.
    cash for cars brisbane

  13. The tutorial is very helpful for a first timer like me, by the way if you could have given a tutorial on creating a free website, it would have been very helpful for newbies like me.
    Thank you
    cash for unwanted cars

  14. Hello There. I found your blog using msn. This is a really well written article. I will make sure to bookmark it and come back to read more of your useful information. Thanks for the post. I will definitely return.
    car removal brisbane

  15. My Husband and I stumbled over here coming from a different website and thought I might as well check things out. I like what I see so now i'm following you. Look forward to exploring your web page yet again.
    Cash for Cars Hobart

  16. I would like to thank you for the efforts you've put in writing this website. I am hoping to see the same high-grade blog posts from you in the future as well. In fact, your creative writing abilities has motivated me to get my own blog now ;).
    cash for cars melbourne

  17. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: 신용카드 현금화

  18. Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. 구글결제 현금화

  19. This helps computers get a better understanding of human behavior and take better decisions. And that's why there are data science course in hyderabad

  20. I am looking for some good blog sites for studying. I was searching over search engines and found your blog site. Well i like your high quality blog site design plus your posting abilities. I'm from cash for cars caboolture. Thank you and good luck for the upcoming articles.

  21. First, check your own car insurance policy to see what coverage carries over to rental cars. Second, see if the credit card you are using offers any coverage for renting. And finally, check the options the car rental agency offers in its own policies. Exotic Car Rental

  22. I have read your excellent post. This is a great job. I have enjoyed reading your post first time. I want to say thanks for this post. Thank you.
    top cash for cars brisbane

  23. This is very nice to watch.. Do you want to know car price. Click hereCar Price

  24. In a plumbing emergency the first port of call will probably be the internet or Yellow Pages. In the United Kingdom you can go to the Chartered Institute of Plumbing and Heating Engineering (IPHE). This is a charity whose goal is to "improving the science, practice and engineering principles of plumbing". There you will be able to search for registered plumbers in your postcode area. These are plumbers who have been vetted and who meet certain criteria. The next step will be to start making some phone calls. Hecton Plumbers

  25. Cash For Cars Euroa buys any type of old, damaged, scrap, junk, wrecked, and unwanted vehicles for as much as up to $9,999 with free removal | Address:13 Gay St, Benalla VIC 3672, Australia | Phone: 041 231 5595 | Cash For Cars Euroa

  26. Need to sell old car? Need Fast Cash for your old or unwanted Vehicle | Address: 103 South Pine Road Brendale QLD 4500 Australia | Phone: 0469 048 281 | Old Car Removal Brisbane

  27. Get free car removal services all over Brisbane region. We offer cash for your cars, vans, trucks, Utes, 4wds. Our rates are higher than usual wreckers | Address: 135 Bradman St, Acacia Ridge QLD 4110, Australia | Phone: 0423514111 | Email: info@apluscarremoval.com.au | Free Car Removal

  28. The best part of the Cash for Cars Sunshine Coast is that monetary deals are made at that instant. There are a set of experts who are present at that moment | Address: 103 South Pine Rd, Chermside QLD 4032, Australia | Phone: 07 3359 8688 | Cash For Cars Sunshine Coast


Related Posts Plugin for WordPress, Blogger...

View All My Posts Here