Genting Spore 03 (Nov 14 - Dec 26)

[behappyalways]

Genting Singapore Shares Dip as Currency Losses Hit Profit
http://www.bloomberg.com/news/articles/ ... d-downturn

[winston]

not vested

Genting Singapore PLC’s Latest Earnings: The Pain Continues

https://www.fool.sg/2015/08/14/genting- ... continues/

[behappyalways]

The chips are still down for struggling gaming giant Genting
http://sbr.com.sg/hotels-tourism/news/c ... nt-genting

[winston]

not vested

Genting Singapore (GENS SP): Surprisingly positive vibes from MBS; BUY TP SGD0.86

MBS results positively surprised us with VIP volume growth and stable mass market GGR.

Positive read through for GENS. We gather that RWS may report 3Q15 EBITDA of ~SGD275m (+8% YoY, +39% QoQ).

Even so, trim FY16/FY17 EBITDA by 2% to reflect weaker VIP operations and TP by 2% to SGD0.86. Maintain BUY call.

Source: Kim Eng

[winston]

not vested

Gaming: Why Is Genting Singapore Sitting On So Much Cash? Bernstein Downgrade

By Shuli Ren

Genting Singapore (G13.Singapore) currently has over 5.2 billion Singaporean dollars sitting on its balance sheet, a significant amount for a company that has only S$8.7 billion market cap.

Meanwhile, its management has no intention to boost its share price, which has slumped 23% in the last year, with buybacks.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... downgrade/

[winston]

GENTING SINGAPORE NOT IMMUNE TO WEAKNESS IN MASS TABLES, ANALYST SAYS

Source: Calvinayre

http://calvinayre.com/2016/07/26/casino ... -weakness/

[winston]

Genting Singapore's net loss narrows to $10.5 mil in 2Q

By Zavier Ong

SINGAPORE (Aug 4): Genting Singapore, the casino and resorts operator, saw 2Q16 net loss narrow 38% to $10.5 million from a year ago due to the recognition of a fair value loss of $95 million on derivative financial instruments in 2Q15.

Revenue dipped 17% in 2Q to $480.9 million, down from $578.1 million a year ago, mainly due to a low win percentage in the premium market despite a good performance in the mass and premium mass market. Resorts World Sentosa (RWS) contributed revenue of $480.4 million.

During the quarter, RWS’s combined attractions sector maintained a daily average visitation exceeding 18,000 while the hotel businesses recorded an overall occupancy rate of 93%. Genting Hotel Jurong recorded an occupancy rate of 95%.

As at end June, cash and cash equivalents stood at $4.87 billion.

Looking ahead, the group notes that the regional economic environment continues to be uncertain, and that it will continue to exercise caution with its VIP gaming business. The group will also continue to launch further cost efficiency initiatives that had begun in 2Q.

Meanwhile, development of the joint venture integrated resort project in Jeju, South Korea, is progressing well and on schedule. The take-up of the residential plot continues to be well received and the project is on track for the soft opening of Phase 1 in the fourth quarter of fiscal 2017.

Shares of Genting Singapore closed 1.3% higher at 79.5 cents.

Source: The Edge

[winston]

Time to roll the dice on Genting Singapore?

By Jude Chan

SINGAPORE (Aug 5): It might not be wise to bet the farm on Genting Singapore (GENS), especially after 2Q16 results announced on Thursday saw it extend its multi-quarter losing streak.

The casino and resorts operator posted a narrower net loss of $10.5 million in the second quarter ended 30 June 2016.

Revenue fell 16.8% in 2Q16 to $480.9 million, down from $578.1 million a year ago.

(See Genting Singapore's net loss narrows to $10.5 mil in 2Q)

“Blame it on bad luck,” says RHB’s team of analysts in a Friday report, adding that the subpar VIP luck factor marred an otherwise “decent” 2Q16 showing.

“2Q16 core net profit of $6.1 million appeared to be a headline miss,” says CIMB analyst Jessalynn Chen.

But, there are “positive signals” that Genting Singapore might have turned the corner.

“While GENS had a weak 2Q16, there were positive signals as hold-adjusted EBITDA was close to flat q-o-q and Macau is showing signs of stabilisation,” says DBS analyst Mervin Song. “We believe we are now close to seeing a potential recovery in earnings in FY17.”

So, is it time to roll the dice and take a gamble on Genting Singapore?

“Following two tough years, we believe now is the opportune time to buy into a highly cash generative business in a two-player oligopoly,” says Song.

DBS is upgrading its recommendation for Genting Singapore to “buy” with an increased target price of 91 cents, from its “hold” call and 79 cents target previously.

Song believes Genting Singapore has an ace in the hole: it is sitting on net cash of close to $3.4 billion, which puts it in a strong position to take advantage of opportunities in new casino markets.

The possibility of Tokyo passing a legislation to legalise casinos in Japan is on the cards, which could open the door for GENS to potentially bid for a casino licence to operate there.

UBS has a “buy” recommendation on GENS, with a price target of 95 cents.

Meanwhile, GENS’s proposed integrated resort in South Korea is reported to be on track and progressing well.

Resorts World Jeju (RWJ) launched part of Phase 1 of its residential development in March, and has sold 50% of units launched so far. The rest of the resort remains on track for soft opening in October 2017.

CIMB’s Chen lists “upside from RWJ starting 2017” as one of the reasons underpinning CIMB’s “add” recommendation for Genting Singapore, with an unchanged target price of 89 cents.

Other upsides include potential volume growth in the higher-margin mass gaming segment, easing bad debt charges, and cost savings from GENS’s right-sizing exercise, according to Chen.

RHB, however, believes GENS’s mass gaming segment is unlikely to benefit from the surge of tourist arrivals to Singapore, particularly from China.

While the number of Chinese visitors grew 53.2% y-o-y to one million in the first four months of the year, RHB says “the increase was likely due to an influx of visitors from Tier-2 cities, which are typically less affluent”.

In addition, RHB says the current cautious economic sentiment could “impede gamblers’ appetites”.

As a result, RHB downgrades Genting Singapore to “neutral” from “trading buy”, and lowers its target price to 82 cents from 91 cents previously.

As at 3.31pm, Genting Singapore is trading 5.0% lower at 75.5 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/t ... 9-87358173

[winston]

not vested

Have the wheels of fortune stopped turning for Genting Singapore?

By Gwyneth Yeo

SINGAPORE (Aug 22): UOB Kay Hian is maintaining its “buy” rating for Genting Singapore, but with a lower target price of 84 cents from 88 previously as the casino operator is hit by lower mass market gross gaming revenue (GGR) at its Resorts World Sentosa (RWS) integrated resort.

While VIP gaming revenues had already slowed down since 2014 with China’s slowing economy and graft crackdown, analyst Vincent Khoo noted in a Monday report that mass market gross gaming revenue had followed suit in 2QFY2016, breaking from its steady growth trend from 2QFY2014 to 1QFY2016.

Both RWS and Marina Bay Sands saw similar declines and Singapore’s mass market gross gaming revenue for tables and slots fell by 7.6%, the “most severe quantum drop since the opening of the dual casinos in 2010”, according to Khoo.

Khoo attributed much of the decline in the mass-market segment to the slowdown in the oil and gas industry, which is experiencing manpower cuts and financial restructuring.

In 2015, the O&G industry contributed about 5% to Singapore’s GDP and “consultants estimated that 15,000 jobs related to the O&G industry in Singapore may have been lost in the past year”, according to Khoo.

“Notably in the past, professionals in the O&G industry are known for their lucrative pay, and quite a few O&G related individuals ranked among Singapore’s wealthiest individuals. Hence, it is perceived that up until recently, gamers from the O&G industry disproportionately featured higher spending power and accounted for the premium mass segment,” writes Khoo.

“The same analysis also applies to the O&G professionals in Malaysia, with Malaysia being a key market for Singapore’s casinos”.

Furthermore, higher tourist arrivals have done little to influence gaming numbers. Singapore’s tourist arrivals rose 11% in 2Q16, with a 65% increase in mainland China’s tourists and a 4% increase in Southeast Asian tourists. Khoo believes these tourists are “low-yielding players”.

To that end, Khoo expects the weakness in the mass market GGR to mirror the stress in the O&G industry, and recovery for both casinos will be slow.

Shares of Genting Singapore closed at 76 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/h ... f-87358173

[winston]

not vested

Genting Singapore: Short length of stay by Chinese visitors cap upside for casinos

According to Singapore Tourism Board (STB) figures, visitor days from China for Jan-Jun 2016 increased 17.0% YoY despite the 55.2% rise YoY in visitor arrivals.

In terms of length of stay, 24.0% of the visits were under one day and 37.7% were one day long.

The increase in visits of these lengths (under one day and one day) accounted for between 9 to 10 ppt out of the 17.0% growth in visitor days.

We believe the short length of stay as well as STB’s marketing focus on Tier 2 and Tier 3 cities to be key reasons why the robust tourist arrival numbers have failed to translate into greater gambling revenue in the past half-year.

STB recently revealed that Sightseeing, Entertainment, & Gaming expenditure fell 21% YoY in 1Q16, which follows a 13% decline in 2015, and a 6% increase in 2014.

While we remain bearish on rolling and non-rolling volumes in 2H16, we expect upside from Genting’s right-sizing exercises as well as its Jeju development.

Source: OCBC