Kingsmen

Kingsmen’s 2QFY10 net profit grew 30% yoy to $4.6m led by strong growth across all its business divisions. Notably, the group’s order book surged 50% to $187m during the quarter. New orders mainly come from interior fit-out for shops at the MBS, contracts to construct the media and broadcast facilities for the commonwealth games in India, and jobs on the extension of HK Disneyland. The strong order book momentum points to earnings upside in 2H.

The group expects to be involved in the development of the 2nd and 3rd phases of the USS in the coming years. Recently, the group won a contract to work on the extension of Hong Kong Disneyland and more could follow. With various theme park projects in the pipeline, including the Shanghai Disneyland resort, and Universal Studios in Dubai, Seoul and Shanghai, we believe the group is well positioned to reap significant profits in this space. KE has a BUY with TP of $0.85