SINGAPORE (Jan 28): Straco Corporation has temporarily closed three of its operating attractions in China with effect from Jan 25, says the company in an SGX announcement on Jan 28.
In addition to the attractions in China, Staco owns a controlling stake in the Singapore Flyer, which has been suspended since Nov 19 because of a technical problem.
This means all four attractions operated by the company are not open for business.
The three attractions in China temporaily closed are: Shanghai Ocean Aquarium, Underwater World Xiamen and Lixing Cable Car. The company has another attraction, Chao Yuan Ge, that is under development. It is adjacent to the Lixing Cable Car.
“These measures are in conformance with the advice of the Chinese local authorities to help prevent the spread of the coronavirus and for the health and safety of all employees and visitors,” the company says.
“As the situation relating to the spread and containment of the virus remains uncertain and fluid, the Group will continue to monitor the financial impact the crisis may have on its financial performance,” says Straco.
For the most recent 3Q ended Sept 30 2019, the company reported earnings of $18.83 million, down 12.1% y-o-y. Revenue in the same period was $43.1 million, down 11.1% y-o-y.
In recent weeks, Straco has been actively buying back its own shares, including the most recent purchase of 340,000 shares at between 67 and 67.5 cents on Jan 8.
Straco shares dropped by 10.57% on Jan 28 to close at 55 cents, as the market reacts to the Wuhan virus episode. At this level, the company’s share is valued at 11.2 times historical earnings.
Year to date, Straco shares have dropped 19.1%.
