STRACO Corporation continued to benefit from increased visitor numbers at its two main aquarium attractions in China, with net profit for the second quarter ended June 30 up 31 per cent at $7.8 million. Revenue was up 19 per cent at $16.4 million, from $13.8 million a year ago.
Executive chairman Wu Hsioh Kwang said in a statement yesterday that the tourism sector in China has recovered from the H7N9 bird flu virus scare in April and May. A new paper released by Chinese scientists yesterday said that while it was likely that there was a case of human-to-human transmission of the virus, the virus was still not easily transmitted this way.
Straco also noted in an SGX filing that China's national tourism strategy focuses on promoting the taking of paid annual leave days and infrastructure initiatives to make travelling around China easier. "This augurs well for the group".
The two aquariums contributed 94% of Straco's revenue in 2012.
In 2Q 2013, revenue rose by 19% on-year when the number of visits to the two attractions increased by 14%.
In 1Q 2013 rises in revenue (25% on-year) and visits (23% on-year) were more evenly matched.
It seems that children formed a smaller proportion of visitors.
The 2Q result was excellent, with overall margin expansion. Revenue was up 21% for 1H while pre-tax profit was up 65%.
The core business continued to grow but I hope the Chao Yan Ge project can add further sizzle when it is ready in 2015/2016 -- dates cited in article >
Diversity wrote: The two aquariums contributed 94% of Straco's revenue in 2012.
In 2Q 2013, revenue rose by 19% on-year when the number of visits to the two attractions increased by 14%.
In 1Q 2013 rises in revenue (25% on-year) and visits (23% on-year) were more evenly matched.
It seems that children formed a smaller proportion of visitors.
I need to correct my post.
Straco reports in S$. The 5 ppt difference can be explained by recent strength of RMB.
50 cents is the real underlying value of STRACO, according to VectorVest.
Business: Straco Corporation Limited is engaged in development of tourism-related businesses.
Capital Appreciation
Value: Value is a measure of a stock's current worth. STRA.SI has a current Value of $0.50 per share. Therefore, it is undervalued compared to its Price of $0.30 per share.
Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge.
