Kingsmen: 2Q19 results, valuation and NERF

Kingsmen’s  share price – SGD0.51 as of 16 August is trading below net tangible assets (SGD0.54) again which seems very cheap for a service company.

Kingsmen reported mixed 2Q19 results – revenue up 12% year on year but net profit down 38% year on year mainly because of forex issues. The interim dividend has been kept constant so the trailing dividend yield is 4.9%. Although the results weren’t great, I don’t think it justifies Kingsmen trading below NTA.   I’m going to wait and see the outcome of their developing attractions business.

NERF Marina Square looks promising! The posters on the Marina Square storefront are already up and Kingsmen is advertising on buses and Facebook. NERF

Kingsmen is also promoting their Marina Square NERF attraction with SAFRA which should be a good fit. The marketing video looks pretty impressive and there’s already a listing on Tripadvisor. I’m hoping Kingsmen will be willing to pay a commission to list ticket prices on Tripadvisor because it will make it easier for tourists to discover this attraction. Kingsmen is doing everything they can to make NERF Action Xperience a success!

On a separate note, I have uploaded a 9 page SOG report here on InvestingNote and will be grateful if you can vote for me after you download the report. I need at least 100 more votes in order to be one of the six finalists so I really need help! You will need to set up an account on InvestingNote to vote. InvestingNote is a social network for investors and they have some cool features which includes a price alert feature for stocks.

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