Straco

Straco: Announced a strong set of 1Q13 results, with net profit at $5.46m, +201% y/y and +73% y/y, while revenue at $11.3m, +25% y/y and +3%q/q. The strong results were due to more people visiting all three of its attractions, lower administrative expenses caused by a strengthening of the yuan against the Singapore dollar, and a one-off gain from selling land use rights. Combined visitor numbers to the co's two main attractions, the Shanghai and Xiamen aquariums, increased 22.5% y./y to 498,000 visitors for the quarter. Grp's chairman note that the good performance was achieved despite slower Chinese economic growth in the first quarter. But note that recent cases of the H7N9 strain of bird flu may hit businesses. Nonetheless, grp shall remain vigilant and adopt safety precautions at its attractions, where appropriate. The group currently has no debt and seats on a net cash position of $101.7m, translating to 12c / share vs current share price of 29c.