Straco -- gem?

These metrics demonstrate how superior the economics of Straco's business is.


FY2011 ---> FY2012 ---> FY2013 ---> FY2014

Return on Equity 14.092 ---> 15.634 ---> 23.754 ---> 21.905

Gross Margin 62.065 ---> 64.46 ---> 94.013 ---> 94.91

Net Margin 35.832 ---> 35.746 ---> 46.81 ---> 40.822

Notice below : Nothing to do with Straco, I am sure. It's the receivers who put out the notice. They were operating the business prior to it being sold to Straco's JV, and the Flyer did generate net cash which now will be paid as dividends to the relevant parties (ie creditors).

:lol:



NOTICE OF PREFERENTIAL DIVIDEND
=========================
Name of Company: Singapore Flyer Pte Ltd
(In Creditors’ Voluntary Liquidation)

Address of Registered Office: c/o Deloitte & Touche LLP
6 Shenton Way
OUE Downtown 2 #33-00
Singapore 068809

Company Registration Number: 200306169R

Amount per Centum: 100 Cents in a Dollar

Creditors Entitled: Preferential Creditors under Section 328 of the Companies Act (Cap. 50)

First and Final or Otherwise: First and Final Dividend
When Payable: 24 July 2015

Where Payable: c/o Deloitte & Touche LLP
6 Shenton Way
OUE Downtown 2 #29-00
Singapore 068809

Dated this 22nd day of July 2015
ANDREW GRIMMETT &
LIM LOO KHOON
Joint & Several Liquidators


NOTICE OF DIVIDEND
==============
Name of Company: Singapore Flyer Pte Ltd
(In Creditors’ Voluntary Liquidation)

Address of Registered Office: c/o Deloitte & Touche LLP
6 Shenton Way
OUE Downtown 2 #33-00
Singapore 068809

Company Registration Number: 200306169R

Amount per Centum: 65 Cents in a Dollar
First and Final or Otherwise: First and Interim Dividend
When Payable: 24 July 2015

Where Payable: c/o Deloitte & Touche LLP
6 Shenton Way
OUE Downtown 2 #29-00
Singapore 068809

Dated this 22nd day of July 2015
ANDREW GRIMMETT &
LIM LOO KHOON
Joint & Several Liquidators

Hooray to the Singapore Flyer!

1) ... overall revenue for the first half of FY2015 amounted to $54.54 million, an
increase of $20.21 million or 58.9% compared to 1H2014. Revenue from the Singapore Flyer accounted for 88% of the increase.

2. Profit before tax was $15.79 million for the current quarter, an increase of 23.8% compared to the profit before tax of $12.75 million for 2Q2014, mainly attributable to the profit contributed by the Singapore Flyer as well as higher profit from SOA.

Straco share buy-back 186,600 shares on 17/8/2015 at beween 94 cts to 97 cts.

Straco reported 1H 2015 profit of SGD20.25 million increased by 41.5%.
Straco last year 2H 2014 profit was SGD25.2. ( 3Q = SGD20.3 million & 4Q = SGD4.9 million)
If I project Straco 2H 2015 profit will to increase by 25%.

1H 2015 profit = SGD20.25
2H 2015 profit = SGD31.5 (calculated on profit increased by 25%)
FY 2015 profit = SGD51.75
PE = 16x (yesterday closed price @ 97 cts)
PE = 14x (Ex cash holding of SGD108 million)
Straco able to increased its profit and generated free cashflow yearly trading @ 97 cts is very reasonable.

This morning out of 79 lots done, most of it was traded at high of SGD1.07.

Straco deserves to be trading at $1.50 or so, which translates into a PE of about 20X ex-cash. It is a growth story (especially with the SG FLYER) as well as a high FCF (free cash flow) business with very low implied volatility.

There is no doubt Straco being able to generate free cash flow yearly. The recent prize catch, Singapore Flyer have already being profitable since day one. Straco has yet to ripe the full potential of Singapore Flyer through improvement.

The SG Flyer tenants rentals were less than 50% of the market rate. The function halls have left sitting idle, this place has enormous upside potential. When Straco reveal it's plan and reinvent itself and development plans put in place, it will create excitement for the SG Flyer. All the plan put in place will eventually contribute positively to Straco.