Straco -- gem?

Stayed in a no. of hotels on recent holiday. One was recently renovated - I m sure it is an ageing hotel given a new lease of life. The room fittings were trendier than my own house, the bathroom fittings were appealing.....the lobby was chic.

As they age, hotels lose customers & can't raise rates.

Thinking about Straco, I realise a key advantage it has. Does it need to upgrade its flooring? No. Visitors hardly notice. Lobby? External facade? Answer is -- largely no.

Visitors go to enjoy the marine life exhibits. Does Straco hv to keep upgrading its exhibits? No, because it gets mostly first time visitors. China has a super huge population!

Negative, neutral or positive for Straco?

It should be Negative if the condition prolong for a long duration.
But since straco has so much cash, it should be able to weather it.

A strong attribute of Straco is its free cash flow. This video explains FCF:

CIMB initiated coverage of Straco (45 cents) with a target price of 60 cents.

Am vested in this stock. Great business model that could generate strong recurrent cash flow. In a sunrise industry that supports positive business dynamics.

A strong candidate for a long term hold.