Kingsmen: Growing with the IRs

Kingsmen’s share price was up 7% this week on news involving a SGD9 billion expansion of the two integrated resorts (IRs) in Singapore.

Universal Studios Singapore will be adding more attractions and Kingsmen should be well positioned to win some work as they have done SGD100 million of work on the existing theme park which includes the Waterworld and Shrek attractions.

Meanwhile, the expansion of MICE facilities in Marina Bay Sands should also lead to more opportunities for Kingsmen given the company’s strong track record in trade shows and exhibitions.

The expansion of both IRs could lead to some contract wins for Kingsmen over the next few years. As I previously mentioned, the key share price catalyst for Kingsmen is still successful execution on its Marina Square NERF attraction which is scheduled to open in end-2019. If the Marina Square NERF entertainment centre leads to meaningful earnings growth, it could lead to Kingsmen rolling more of such family entertainment centres across Asia and even franchise income from new NERF attractions.

I’m looking forward to attending this year’s AGM which will probably be held at the new HQ in Changi Business Park. Will update if there are any new insights!

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