The Motley Fool

Analyst Insight: 18 Takeaways From Kingsmen Creative Ltd’s Full Year 2018 Earnings Briefing

This is a continuation from our previous article on Kingsmen Creatives Ltd’s (SGX: F8D) analyst briefing for fiscal year 2018 earnings. These are the next nine takeaways from the briefing, making it 18 insights in total. Without further ado …

10. For Shanghai Disneyland (which the group has worked on back in 2014-2017), they are also pitching for more parcels there. In Singapore, Kingsmen plans to pitch for the Singapore Mandai project which will consolidate the zoo and bird park into an eco-zone.

11. Prospects in China are very good and the country is not “slowing down” like what some analysts or commentators are saying. There is still healthy demand for consumer goods there and Kingsmen is bullish on the country’s prospects.

12. Kingsmen is also pitching for Formula One in another Asian venue, extending their Singapore Formula One win. Assuming they clinch the contract, the group has to incur capital expenditure for new seats.

13. Manufacturing operations have shifted to K-Fix (in Malaysia) and their Nantong factory in China.

14. KR+D is the creative arm of Kingsmen which aims to introduce central positioning of their design capabilities, and is in line with their shift to their new experiential headquarters in Changi Business Park.

15. New offices have been opened in Phnom Penh, Cambodia and also in the USA, bringing Kingsmen’s presence to 21 offices around the world.

16. For their new branded intellectual property (IP) division, Kingsmen plans to focus on three key areas. One is “edutainment” which would include IP owners such as Disney, Universal, National Geographic, Mattel and Hasbro. Another is active play which includes NERF, and the final one is live events which include TOYBOX, carnivals and pop-up engagement zones.

17. For the NERF FEC at Marina Square, the target opening date is in the fourth quarter of 2019 and it will span 18,000 square feet. The conceptual design is almost done and Kingsmen will be sourcing for contractors now. By end of May, the site will be taken over and construction work will begin.

18. As more FECs are opened in the region, operating costs will be amortized and spread out over more centres. The idea is to obtain a scale (multiplier) effect from the opening of multiple FEC in Asia (Kingsmen has rights to Asia and now the USA as well) in order to bring down overall costs.

Worried about the overall state of the market? Do you know the 1 thing you should never do in the stock market? The Motley Fool Singapore’s new e-book lays out a plan to handle market crashes, details the greatest advantage you have as an investor, and looks at decades worth of market data to bring you the smartest insights on investing. You can download the full e-book FREE of charge—Simply click here now to claim your copy

The Motley Fool Singapore contributor Royston Yang contributed to this article. Royston owns shares in Kingsmen Creatives.

The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has a recommendation for Walt Disney. The Motley Fool Singapore writer Chin Hui Leong owns shares in Walt Disney.