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

Counter Name	Last	Change
AEM Holdings	2.370	-
Best World	2.450	-0.010
Boustead Singapore	0.945	-
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-
China Sunsine	0.420	-
ComfortDelGro	1.490	0.010
Delfi Limited	0.895	-
Food Empire	1.270	0.010
Fortress Minerals	0.300	-
Geo Energy Res	0.305	-
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.160	0.020
InnoTek	0.555	0.005
ISDN Holdings	0.310	0.005
ISOTeam	0.044	-
IX Biopharma	0.042	-
KSH Holdings	0.250	-
Leader Env	0.047	-
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.140	0.001
Nordic Group	0.305	-
Oxley Holdings	0.089	0.001
REX International	0.134	0.001
Riverstone	0.800	0.005
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-
Sunpower Group	0.210	-
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-
Wilmar Intl	3.340	-0.130
Yangzijiang Shipbldg	1.720	-0.020

Counter Name

Last

Change

AEM Holdings

2.370

Best World

2.450

-0.010

Boustead Singapore

0.945

Broadway Ind

0.133

China Aviation Oil (S)

0.920

China Sunsine

0.420

ComfortDelGro

1.490

0.010

Delfi Limited

0.895

Food Empire

1.270

0.010

0.300

0.305

2.500

3.160

0.020

InnoTek

0.555

0.005

ISDN Holdings

0.310

0.005

0.044

0.042

0.250

0.047

0.045

0.067

0.140

0.001

Nordic Group

0.305

Oxley Holdings

0.089

0.001

REX International

0.134

0.001

Riverstone

0.800

0.005

Southern Alliance Mining

0.430

0.485

0.210

0.067

0.022

0.820

3.340

-0.130

Yangzijiang Shipbldg

1.720

-0.020

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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