STRACO SHARE BUY BACK
Straco since May 2015 had been actively buying up it's shares in the market. Trading volume in Straco were very low. Most of the trading done were share buy back by Straco.
12/5/2015 - 20k shares @ average price $1.03
14/5/2015 - 200k shares @ average price $1.04
6/7/2015 - 500k shares @ average price 95 cts
8/7/2015 - 1.5m shares @ average price 94.5 cts
17/8/2015 - 186.6k shares @ average price 96.75 cts
20/8/2015 - 600k shares @ average price 92.4 cts
4/9/2015 - 28.9k shares @ average price 89.3 cts
22/9/2015 - 100k shares @ average price 87.6 cts
28/9/2015 - 49.6k shares @ average price 87.6 cts
1/10/2015 - 20k shares @ average price 88 cts
2/10/2015 - 11.6k shares @ average price 87.5 cts
5/10/2015 - 120k shares @ average price 88.9 cts
7/10/2015 - 23k shares @ average price 88.7 cts
Total share by market acquistion = 3,359,700 shares (0.39%)
Straco report s double-digit growth in revenue & earning for 3Q today.
STRACO 3rd QUARTER RESULT:
Revenue increased by 27.8% to $49.3m
Profit increased by 20.3% to $34.9m (Profit margin = 70.8%)
Profit after tax increased by 22.6% to $24.9m (Net profit margin = 50.5%)
EPS = 2.72 cents
STRACO 9 MONTHS RESULT:
Revenue increased by 42.4% to $103.8m
Profit increased by 28% to $64m (Profit margin = 61.7%)
Profit after tax increased by 30.4% to $45.16m (Net profit margin = 43.5%)
EPS = 4.94 cents
1. Straco revenue increased was mainly attributable to the SLPL & SOA but partially offset by lower revenues from UWX.
2. Overall visitation was 2.03 million visitors for the quarter, an increase of 5.1% compared to 3Q 2014.
3. Cash flow - Straco generated net cash from operating activities amount to $34.77 in 3Q 2015. As at 30/9/2015 cash & cash equivalent balance amount to $140.934m.
4. 3Q profit after tax of 50.5%
Straco ended 3Q with$141 m in cash (+$28.4 million from start of 2015).
This was after paying off $9 m in long-term debt and 7.5 m in short-term debt and spending $2.9m on share buyback.
In other words, the business generated $47.8 million in free cash flow in the first 9 months! Compare that to its net profit after tax for 9M2015 of $45.16m, and you can be certain this is a very productive cash-generating machine with little need for capex.
Do you know of any other super business like this?
Yes BNN I fully agree with you, Straco cashflow is marvellous. The business generated $47.8 million in free cash flow in the first 9 months is unbelivable!
Straco by just making the basics right has turn 'The Singapore Flyer' into another cash generate machine. There is big upside from here as Straco has (undisclosed) plans for a makeover which it has submittted to the relevant government bodies for their blessings.
Straco 9 months profit for 2015 = $45.2 million. If add 4Q 2015 profit at $10 million; total FY 2015 profit = $55 million. Share price @ 85 cents valued Straco at 13 times earnings and ex cash 10 times earnings. Straco is unbelivable way too CHEAP!
(Straco 4Q 2014 profit = $4.6 million but this was weight down by increased in operating & adminsitrative expenses increased $6 million in total; 82% higher than 4Q2013 mainly attributable to the expenses incurred by SLPL as it took over the operation of Singapore Flyer from 28th November 2014.)
