View of the singapore flyerPhoto:
Credit Suisse report dated 15 July 2016: "According to the Singapore Tourism Board (STB), tourist arrivals were strong in May 2016, rising 9.8% YoY to reach 1.34 mn arrivals.

Jan-May 2016
"This brought visitor arrivals in January-May to 6.89 mn, an increase of 13.3% YoY. We believe this supports our view that tourist arrivals could reach a record high of above 16 mn in 2016.

"The growth in arrivals was broad-based across seven of the ten key markets. In particular, Chinese arrivals surged 63% YoY in May, which would bring January-May arrival growth to 55% YoY.

"The key area of weakness was in Malaysian arrivals, which fell 9% YoY in May, reversing a 7% YoY increase in April.

Credit Suisse said that SATS is its preferred tourism play due to its dominant 80% market share at Changi Airport. The research house is also positive on Genting Singapore, SIA and CDLHT (all rated OUTPERFORM).

While Straco Corporation is not within Credit Suisse's universe of coverage, it is likely to benefit from higher tourist arrivals to Singapore. Straco is majority owner of the Singapore Flyer.



tix4.15b@ the Singapore Flyer. NextInsight file photo SINGAPORE FLYER

No. of visitors in 2015: 1.4 m

2015 revenue: S$38.8 m 

(This is the first full-year of revenue as the Singapore Flyer was acquired by Straco Corp at end-Nov 2014).

Profit before tax: S$11.6m

Profit before tax margin: 12.5%

Stracotunnel1.15@ Straco's Shanghai Ocean Aquarium. NextInsight file photoSTRACO CORP:

2015 revenue: S$127.7 m (+38.3% y-o-y)

2015 net profit: S$49.0 m (+30% y-o-y)

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