Straco Corporation Limited Reports 3Q2025 Financial Results: Revenue and Profit Down, but Strong Cash Position Maintained

Key Highlights of the Report

• Revenue for Q3 2025: S\$27.22 million, down 13.4% year-on-year.
• Operating Profit: S\$15.72 million, a decrease of 11.6% from Q3 2024.
• Profit After Tax: S\$11.34 million, down 9% year-on-year.
• Profit Attributable to Shareholders: S\$10.73 million, a fall of 8% from Q3 2024.
• 9-Months YTD 2025: Revenue S\$59.9 million (-11% YoY), Net Profit S\$16.08 million (-27.4% YoY).
• Net Cash Holdings: S\$184.98 million as of 30 September 2025, indicating a robust balance sheet.
• Net Cash Generated from Operations: S\$16.35 million in Q3 2025, down 23.7% from the previous year.
• Exchange Gain: S\$0.63 million in Q3 2025, reversing a loss of S\$1.2 million in Q3 2024.

Detailed Operational Review

The Group’s businesses in both China and Singapore remained profitable in Q3 2025, despite a challenging environment marked by lower revenues and subdued consumer sentiment. The Shanghai Ocean Aquarium reported an increase in both revenue and profit, bucking the trend seen in other segments.

However, Xiamen Aquarium and the Lixing Cable Car operation in Xi’an saw declines in both revenue and profitability compared to Q3 2024. Management attributes this to reduced spending among Chinese tourists and intensified competition in the market.

Despite these headwinds, the return of crowds during the summer holiday season has provided a glimmer of optimism for the tourism sector’s outlook.

Singapore Flyer and New Attractions

In celebration of Singapore’s 60th year of independence, the Singapore Flyer (Time Capsule) unveiled a reimagined experience that now traces the full arc of Singapore’s history, from its ancient beginnings to its present-day marvels. The enhanced Time Capsule is a two-storey, fully immersive pre-flight attraction that blends cutting-edge multimedia, interactive exhibits, and cinematic storytelling, all supported by a personalized web application. This new experience is poised to draw more visitors and potentially support future revenue growth.

The Wiggle Wiggle-themed experience ended its successful six-month run on 28 September 2025, with management hinting at more themed collaborations in the upcoming months. These initiatives signal ongoing efforts to innovate and attract diverse visitor segments.

Shareholder-Relevant and Potentially Price-Sensitive Information

• Revenue and Profit Decline: The year-on-year decline in revenue and profits for both Q3 and year-to-date may raise concerns about top-line growth and profitability trends, particularly in China.
• Strong Cash Position: Despite weaker performance, the Group’s net cash holdings remain exceptionally strong (S\$184.98 million), providing significant flexibility for future investments, acquisitions, or potential shareholder returns.
• Exchange Rate Impact: The swing from a foreign exchange loss to a gain could indicate improved financial management or favorable currency movements.
• Tourism Recovery: Management’s cautious optimism, based on summer holiday crowd returns and new initiatives at the Singapore Flyer, could be a positive signal for a gradual recovery in the tourism sector.
• Future Growth Initiatives: Ongoing efforts to source new tourism projects in Asia and leverage strategic alliances in China suggest a proactive approach to future growth, which could impact long-term shareholder value.

Background on Straco Corporation

Straco Corporation Limited, listed on the Singapore Stock Exchange since 2004, is a prominent developer and operator of aquatic and tourism-related attractions. Key assets include Shanghai Ocean Aquarium, Lixing Cable Car at Mount Lishan, Underwater World Xiamen, and the Singapore Flyer.

The Group is actively seeking new tourism opportunities in Asia, leveraging its established expertise in China to form strategic alliances and expand its portfolio of tourism assets.

Conclusion

While Straco Corporation faces challenges from muted consumer sentiment and increased competition in China, its stable profitability, robust cash reserves, and continuous innovation in its attractions position it well for future recovery and growth. Investors should closely monitor upcoming financial results and new project announcements, given the potential for these factors to drive share price movements in the medium to long term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with professional advisors before making investment decisions.

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