Brokers' take

Kingsmen Creatives | Cease coverage Dec 28 close: S$0.585 RHB Research, Dec 27

Kingsmen Creatives (Kingsmen) provides interior fit-out services for high-end brands such as Tiffany, Dior, Swarovski, Guess, Abercrombie & Fitch, and Gucci. In recent years, softening demand for high-end products coupled with competition from e-commerce have led to smaller project sizes and weakening margins at Kingsmen's retail interior segment.

However, the group has remained tenacious and ventured into other opportunities including affordable luxury retail, fast fashion retail, travel retail, corporate interior and food & beverage segments. This should mitigate the negative impact from smaller project sizes in the high-end space but margins are still likely to be softer.