The following is a guest post by Tan Si-Rong. Si-Rong is a retail investor with close to 10 years of experience trading in Singapore equities. He has worked in UOB-Kay Hian as an Equity Sales Dealer and at Singapore Tourism Board as an Assistant Manager, specializing in the Meetings, Incentives, Conferences and Exhibitions (MICE) sector.
Founded in 1976, Kingsmen is a communication design and production company that specializes in the following business segments; Research & Design, Retail & Corporate Interior, Exhibitions & Events, Thematic & Museums, and Alternative Marketing.
Growth since IPO
Since Kingsmen’s successful public listing in 2003, its stock price has risen to four times the IPO price of SGD0.195. The same can be said for its revenue; from a mere SGD60 million back in 2002, it has increased steadily to SGD260 million in 2011 due to strong demand for Kingsmen’s services in growth markets such as Greater China, India, Middle East etc. Till date, Kingsmen has handled many large-scale projects such as Universal Studios Singapore (USS), World Expo Shanghai, LVMH boutique stores etc; all adding credentials to Kingsmen’s ability to provide quality services to clients.
Founders and Philosophy
The success story for Kingsmen thus far can be largely due to the two founders of the company, Executive Chairman Benedict Soh and Group Managing Director Simon Ong. Both of them feel strongly in the need to constantly engage clients with total experiential solutions, and delivering excellence in all things that Kingsmen undertakes. The company’s name is also derived from this ideology, in view that the staffs are the “men” who serve the customers, who are regarded as “kings”.
Both founders of Kingsmen are true believers in the power of synergies. While Benedict, who was recently awarded the Lifetime Achievement for Outstanding Contribution to Tourism award by the Singapore Tourism Board, is the one who possesses business acumen. Simon, on the other hand, is the one with both the designing brain and creative juices in him. Together, they see the need to constantly broaden earnings base, enhance capabilities and expand key accounts and client to ride on the growth opportunities presented to the company. Together, they teamed up to shape what Kingsmen is today.
Despite the challenging global economic situation ahead, Kingsmen should be able to continue doing what it does best; and that is to provide value-added services, and enhance the experience of all clients, without affecting bottom-line. The air of optimism can be attributed to the strong pipeline of projects, such as Hong Kong Disneyland extension, Sotheby’s Visitors Centre and Offices, Marina Bay Sands (MBS) and USS extensions etc, which will keep Kingsmen busy for now. Kingsmen may also be tendering for thematic projects like Shanghai Disney, and there is high chance that it will be offered the tender, after its successful execution of the Hong Kong Disneyland project earlier on.
With Singapore maintaining its position as the Top International Meeting City for 5th consecutive year by the Union of International Associations 2011 and Asia’s Top Convention City for the 10th consecutive year by ICCA Global Rankings 2011, it will bode well for Kingsmen’s Exhibition and Museums segment, which is also the key growth driver of sales and earnings for Kingsmen.
My parting words for you? With attractive dividend yield of more than 5%, rising consumerism and booming MICE sector, all things seem to be moving in the right direction for Kingsmen. It remains to be seen if there is any further upside for the stock price of Kingsmen in future.