Kingsmen once again did well, with its 2Q12 PATMI rising 15.3% YoY (149% QoQ), to S$5.2m, on the back of revenue growth of 24.1% YoY (51% QoQ) to S$70.9m. The results were in line with expectations. Revenue growth was largely due to an increased number of theme park and MICE contracts. Its orderbook has grown considerably, to S$238m, from S$197m a year ago, of which all is expected to be recorded in FY12. We remain positive on Kingsmen, given its pipeline of contracts, supported by (1) relatively-strong consumerism in Asia, (2) Singapore as one of the top MICE destinations in Asia and (3) healthy growth of Asia's amusement industry. We are keeping our estimates intact. Kingsmen is currently trading at 7.9x forward earnings, or 5.3x (stripping out net cash of S$44.9m). Its peer average is 6.6x on ex-cash basis. Maintain BUY with TP of S$0.83 (previously S$0.76).

All business segments expected to remain healthy, despite the economic slowdown. All business segments recorded growth in 2Q12, led by its exhibitions and museums division. Management is optimistic of its prospects, as can be seen from the growth in its orderbook.

Strong net cash position. While management has always been constantly keeping in close contact with its clients to ensure timely collections, the improvement in end 2Q12's net cash position (23.4 S''/share) was largely attributed to a significant amount of progress billings and net collections received during the quarter. Kingsmen's operations have always generated positive cash flows. We are estimating net cash of S$38.0m as at end FY12.

Valuation is attractive. Kingsmen is currently trading at 7.9x forward earnings, or 5.3x stripping out net cash. Ascribing a P/E of 7x, and taking into account our net cash estimate, we raise our TP to S$0.83. Maintain BUY, for a stock that has consistently distributed stable and attractive dividends.