Kingsmen Creatives

Kingsmen Creatives: DMG came out with a report on the Group, that the outlook remains positive, with current order book of $81m. Kingsmen secured its very first contract by Disneyland Shanghai, as a reflection on its Thematic and Scenic construction receiving a stamp of confidence. DMG believes that this places Kingsmen in a good position to secure more theme parks contracts in the region, having also prior experience from USS in this space. Also, DMG thinks that Kingsmen is likely to secure a contract for the extended F1 Singapore race, given its past works done for the Singapore Grand Prix. House noted that there has been a shifting trend in the exhibition events recently, which affected the Group's margins; the previous trade shows which requires only pavilions, are changing into more non-trade show in nature- proprietary events. Revenues from the proprietary events are generally better than trade show exhibitions, but margins could be lower, given that more resources are needed. Nonetheless, DMG maintains a BUY on Kingsmen Creatives, with a TP of $0.93.