A flat performance based on revenue and net profit which decreased by 2% and 5.2% respectively. Management guided that Shanghai Ocean Aquarium (SOA) and Singapore Flyer (SF) continues to improve in its revenue but Underwater World Xiamen’s (UWX) profitability was affected by the typhoons. Net profit margin remains high at ~37%.

On the cash flow front, Straco generated more than $65 mil for the second year running. This has allowed its cash holding to raise by $30 mil to $160 mil. As expected, the company continues to pare down the debt taken in 2014 for acquisition of Singapore Flyer. They have cleared a third of the loan over the past 2 years.

I am hopeful that with its strong cash generating capability, the balance sheet will continue to improve for the next few years. This may result in an increase in dividend declared or other new acquisitions. A possible catalyst will be an increase in ticket price for SOA which was delayed in 2015/16.

Continue to hold on to my stake for a stable 3% dividend yield. May add more at appropriate juncture.