Genting Spore 03 (Nov 14 - Dec 21)

Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Fri May 10, 2019 10:26 am

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Genting Singapore Ltd: Ambitious expansion can be digested

Genting Singapore’s 1Q19 adjusted EBITDA dropped 8% YoY to S$329.7m or 25% of our initial
full-year forecast, which we consider below expectations.

As a comparison, 1Q18 and 1Q17 adjusted EBITDA formed 29% and 32% of their respective
full-year totals.

Management expects VIP rolling market to be challenging this year given macroeconomic concerns stemming from the ongoing US-China trade talks and will remain cautious in extending credit for the market.

The group’s share price has corrected 11% since the 3 Apr announcement on the RWS expansion. We believe one key worry has to do with the likelihood of a rights issue given the capex required.

In our opinion, a rights issue is not likely at this point in time and management has also clarified that they have no intention to conduct a rights issue.

After adjustments post this set of results, our fair value dips 6% from S$1.31 to S$1.23.

Post the steep share price correction, we see upside to our fair value as at 9 May’s close.

We maintain BUY on Genting Singapore.

Source: OCBC
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Fri May 10, 2019 1:44 pm

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Falling VIP volume marks tough quarter for Genting Singapore

The results followed a 19% decline in VIP volume to SG$7.6 billion (US$5.57 billion) for the period, with management pointing to Chinese uncertainty and geopolitical frictions which it says “continue to cast a cloud of uncertainty for 2019.”

Customers were patronizing other regional properties in relatively close proximity to Singapore, estimating a full-year decline of 12% in VIP volumes at RWS in 2019.

RWS saw its Singapore VIP market share fall to 44% in 1Q19, down from 47% in the fourth quarter of 2018.


Source: Inside Asian Gaming

https://www.asgam.com/index.php/2019/05 ... singapore/
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Sat May 11, 2019 10:54 am

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Genting Singapore sees profits fall in Q1 2019

BY Erik Gibbs

Hurting the company’s bottom line in the quarter was a net impairment on trade receivables. This is nothing more than a fancy way for a gambling company way to say that it gave out too much credit that it wasn’t able to collect.

Genting Singapore showed this impairment, or bad debt, to be $8.1 million, which was 34% higher than it was a year ago.

The good news is that the amount was lower quarter-over-quarter—the company only gave away $28.6 million in the fourth quarter of last year.

Morgan Stanley Asia analysts said that the results were better than they had anticipated thanks to a greater VIP win rate—3.3%—and a reduction in bad debt.


Source: Calvin Ayre

https://calvinayre.com/2019/05/10/casin ... t-quarter/
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Sun May 12, 2019 9:29 pm

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Analysts upbeat on Genting Singapore’s prospects in Japan

The bidding process and selection of integrated resorts operators would only take place in 2020.

Previously, the group has mentioned that the request for concept in Osaka is scheduled for submission in August and the request for proposal will be around end of this year.

In the first quarter of this year, it posted a net profit of SG$207.8 million (RM634 million), a 13.5% year-on-year (yoy) decrease, due to lower VIP volume.


Source: The Sun Daily

https://www.thesundaily.my/business/ana ... n-MI864871
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Mon May 13, 2019 12:55 pm

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BUY
Last Traded Price ( 9 May 2019): S$0.95 (STI : 3,269.70)
Price Target 12-mth: S$1.20 (26% upside) (Prev S$1.54)

What’s New

1Q19 adjusted EBITDA down 8%– below expectations to S$303m due to c.20% drop in VIP rolling chip

Management guiding for more cautious extension of credit and maintaining current quarterly run rate; cut FY19-21F adjusted EBITDA by 7-9%

Trading close to -2SD EV/EBITDA; maintain BUY on lower TP of S$1.20

Source: DBS

https://researchwise.dbsvresearch.com/R ... =eehgbkhea
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Mon May 13, 2019 1:40 pm

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Analysts temper optimism over Genting Singapore amid near-term headwinds

By Stanislaus Jude Chan

Analysts are heartened by the fact that GENS’s management during the last earnings call clarified that they have no intention of conducting a rights issue to raise funds.


Source: The Edge

https://www.theedgesingapore.com/analys ... 401b309bc7
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Sat Jun 08, 2019 8:55 pm

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Genting Singapore’s Strong Finances Could Be Advantageous in Japan

BY TODD SHRIBER

While noting many US-based casino operators carry debt, “Genting Singapore is huge in net cash”.

At the end of the first quarter, Genting Singapore had $754.40 million in free cash flow. The company $3.14 billion in cash on hand compared to $761.73 million in debt, giving it a net cash position of $2.38 billion.

Sands, the largest US-based casino operator, has debt burden of $11.9 billion. MGM and Wynn Resorts carry liabilities of $15 billion and $9.5 billion, respectively.


Source: Casino.org

https://www.casino.org/news/genting-sin ... s-in-japan
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Sat Jun 08, 2019 8:55 pm

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Genting Singapore’s Strong Finances Could Be Advantageous in Japan

BY TODD SHRIBER

While noting many US-based casino operators carry debt, “Genting Singapore is huge in net cash”.

At the end of the first quarter, Genting Singapore had $754.40 million in free cash flow. The company $3.14 billion in cash on hand compared to $761.73 million in debt, giving it a net cash position of $2.38 billion.

Sands, the largest US-based casino operator, has debt burden of $11.9 billion. MGM and Wynn Resorts carry liabilities of $15 billion and $9.5 billion, respectively.


Source: Casino.org

https://www.casino.org/news/genting-sin ... s-in-japan
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Mon Jun 24, 2019 6:25 pm

Genting Singapore (ADD, tp:S$1.06) - Playing a crucial hand

Its net cash position and track record give GENS a strong chance of winning urban/regional IR in Japan that may accrete 18-23/7 Scts to FY20F fair value.

On the home front, we estimate RWS 2.0 could spur GENS’s non-gaming revenue up to S$1.2bn in FY26F (vs. FY18: S$834m).

GENS is in crucial long-term transformation mode and we like its current compelling valuation of 6.5x FY20F EV/EBITDA.

Maintain Add.

Source: CIMB

https://brokingrfs.cimb.com/uSEsDPvsFTf ... 5fNHg2.pdf
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Re: Genting Spore 03 (Nov 14 - Dec 19)

Postby winston » Tue Jun 25, 2019 8:24 am

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Genting Singapore kept at 'add' by CGS-CIMB on new casino openings in Japan

by Samantha Chiew

SINGAPORE (June 24): CGS-CIMB Securities continues to rate Genting Singapore (GENS) at “add” with an unchanged target price of $1.06.

With several upcoming urban and regional integrated resort (IR) in Japan, many gaming players are eager to secure these opportunities.

"We think Japan’s IR Basic Policy would be introduced by end-FY19 at earliest," says analyst Cezzane See.

So far, Osaka has called for a request for concept (RFC) in April and Yokohama has issued its request for information (FRI) in 4Q18 and GENS has participated in both.

In a Friday report, See says, “We think any new casino openings could be in FY26 at the earliest. In our base-case scenario for FY26, we estimate urban IRs could yield US$830 million ($1.12 billion) to US$1.0 billion EBITDA, while a regional IR could contribute about US$270 million EBITDA.”

GENS has previously stated it prefers larger IRs, but the analyst reckons a regional IR is likely to be earnings accretive and break even in a shorter period.

Assuming GENS takes a 50% stake, debt financing and 11 times FY26 EV/EBITDA, See estimates urban IRs could add 18-23 cents while regional IRs add 7 cents to GENS’s fair value.

Moreover, the group’s non-gaming segment revenue is expected to rise by about 40% to $1.2 billion in FY26, with 50% more hotel rooms and three new attractions.

Assuming a return of 12%, discounted at 8.8% Weighted Average Cost of Capital (WACC) back to FY20, and valued at 10 times FY26 EV/EBITDA, Resorts World Sentosa 2.0 is estimated to add 5 cents to GENS’s FY20 fair value.

“We think GENS’s average FY19-21 operating cash flow of $1 billion per annum will be sufficient to cover the around $900 million per annum ($4.5 billion for five years) capex for RWS 2.0,” adds See.

Meanwhile, for the equity needs of an Osaka and regional IR, as well as 80% of a Yokohama IR, See expects that the group’s end-1Q19 net cash position of US$2.4 million to meet that.

Currently, the stock is trading below a historical mean of 9 times, making it the least-expensive stock in CIMB-CGS’s regional gaming universe.

As at 4.10pm, shares in GENS are trading at 1.08% lower at 92 cents or 1.4 times FY19 book with a dividend yield of 3.8%.

Source: The Edge

https://www.theedgesingapore.com/capita ... 401b309bc7
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