Straco’s net profit rises 26% to $10.5m as Singapore Flyer earnings soar

Coupled with strong performance from China operations.

Straco’s second quarter net profit received a boost from contributions from the iconic Singapore Flyer.

The group’s net profit rose 26% year-on-year to $10.5m, underpinned by around $2.6m in profit contributions from the Flyer.

According to CIMB, the group’s bottomline was also boosted by growth in its China operations, which booked higher visits despite various headwinds.

After benefiting from its 15% ticket hike at Shanghai Ocean Aquarium year, CIMB said that Straco plans to introduce a 10-15% ticket price hike at Underwater World Xiamen (UWX) later this year.

"We continue to like Straco for its strong cash flow generation, operating leverage and steady earnings delivery. It also remains a play on domestic consumption in China," CIMB said.