NagaCorp 3918 / Chen Lip Keong

Re: NagaCorp 3918

Postby winston » Wed Oct 05, 2016 9:22 am

vested

NagaCorp Limited
Maintain OUTPERFORM

3Q16 volume growth moderated on high base; removal of overhangs to serve as re-rating catalyst

NagaCorp reported 3Q16 operating data. By segment, VIP rolling chips volume was -11% YoY (3Q15: +40%) while mass table buyin growth moderated to +6% (2Q16: +18%; 3Q15: +25%) on high comparison base. However, EGM bill-in growth accelerated to +11% YoY in 3Q (2Q16: +6%), which suggested that better traffic and ongoing optimisation were well received.

Local media reported that tax audit over NagaWorld is completed and an additional tax of US$16.6 mn may be levied. Although the
amount is higher than our previous assumption (US$10 mn), removal of this overhang is likely to serve as a re-rating catalyst.

On higher tax provision for FY16 and slower growth in 3Q, we trim our FY16-18 earnings estimates by 4-10% and lower TP to
HK$5.8 (from HK$6.0).
Our assumption of tax payment based on 5% of GGR from FY17E onwards remains unchanged.

In our view, the benefit from NagaCity Walk (soft opening in midAugust) is yet to be seen and Naga2 is priced in. Given the
undemanding valuation and overhangs being removed, we suggest accumulating on a dip.

Source: CS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918

Postby winston » Wed Oct 05, 2016 11:53 am

vested

NAGACORP Jan-Sep VIP Rollings Up 11% YoY to US$6.604B

NAGACORP (03918.HK) announced the unaudited operational highlights for the nine months ended 30 September 2016.

It recorded VIP rollings of US$6.604 billion, up 11% yearly;

Mass market electronic gaming machines bills-in of US$1.137 billion; and mass market public floor tables buy-ins of US$456 million, up 15% and 13%.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918

Postby winston » Mon Jan 09, 2017 9:56 am

vested

NagaCorp Limited
Assuming Coverage with NEUTRAL
New report: Regulatory overhangs outweigh long-term potential

Assuming coverage of NagaCorp with NEUTRAL rating and TP of HK$4.60.

While we are positive on the Naga2 project opening in mid-2017 to fuel further growth, the draft gaming
bill (expected to be submitted in 2017) remains a key regulatory overhang.

Potential new gaming bill clouds outlook:

(1) Potential tax rate hike. We see it could be 4-5x higher than the current 2% but still remain the lowest in
the region. We expect an effective tax rate of 8% (vs street's 5-7%) and estimate that a 1% rise would drag
our 18E earnings by 4%.

(2) New rivalry. The bill could introduce new integrated casino resort outside Naga’s exclusive operational
area. This creates direct competition with NagaCorp longer term.

(3) More restrictive controls (e.g. AML) may also hurt sentiment.

The opening of Naga2 would serve as a medium-term growth driver, as it doubles existing capacity,
strengthens product offerings and enhances competitiveness against regional peers.

Factoring in the potential tax rate hike, Naga's 12x 18E P/E on a fully diluted basis with 4% yield suggests limited downside. We suggest waiting for a better entry point with more clarity on the bill.

Assuming coverage with NEUTRAL rating, TP of HK$4.60

We derive our SOTP target price of HK$4.60/share by applying
(1) 7x 2017E EV/EBITDA on NagaWorld at historical discount to Macau peers, and
(2) 8x 2019E EV/EBITDA on the new Naga2 (average of Asian casino, excluding Macau) as it ramps up and discounted by WACC of 8.5%, and
(3) adding net cash at end-17E.

Factoring in the potential tax rate hike, NagaCorp is currently trading at 12x 2018E P/E on a fully diluted
basis with 4% yield, which suggests limited downside.

Accordingly, we rate NagaCorp as Neutral.

We suggest investors to wait for a better entry point with more clarity on policy change or lower valuation.



Source: CS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918

Postby winston » Sat Feb 04, 2017 5:42 pm

TAN SRI DR CHEN LIP KEONG
Flagship: Various companies
Net worth: RM2.8bil

DR CHEN, 70, who is a trained medical doctor, made his wealth through the gaming and tourism business.

In 2016, he saw a marginal dip in his wealth but that did not deter him from making a general offer for two of the companies on Bursa Malaysia that is controlled by him.

In May 2016, he made an offer to take private Karambunai and Petaling Tin private from the stock exchange, a move that would have cost him RM166mil. There was tepid response as only 4% and 16% of shareholders of Karambunai and Petaling Tin accepted the offer.

But the two listed companies have a small market capitalisation of RM289mil and RM83mil respectively. The other company that he controls on Bursa is FACB Industries Inc Bhd, which had a market capitalisation of RM92mil. FACB is a manufacturer of mattresses and steel fittings.

Karambunai is involved in the tourism industry in Sabah and property development in Malaysia. It owns 1,300 acres near Putrajaya and the Kuala Lumpur International Airport. Petaling Tin is involved in property development.

But Dr Chen’s flagship company is NagaCorp Ltd, the largest hotel, gaming and leisure operator in Cambodia. NagaCorp became the first company with operations in Cambodia to become a public-listed company on the Hong Kong, as well as the first gaming-related company traded.

NagaCorp-owned NagaWorld is the only casino-hotel entertainment complex in Phnom Penh and enjoys a 70-year concession on its licence that runs until 2065.

The 41-year monopoly of its licence will also see it have a casino monopoly within 200km of Phnom Penh until 2025.

Source: The Star
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Thu Feb 09, 2017 9:49 am

<Result Ann>NAGACORP (03918.HK) 2016 Net Profit US$184M; Final Div HK6.36 Cents

NAGACORP (03918.HK) announced the results for the year ended 2016.

Net profit grew 6.7% to US$184 million, with EPS of US7.89 cents.

Final dividend equaled HK6.36 cents.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Thu Feb 09, 2017 9:55 am

vested


Financial Highlights for 2016:

Gross Gaming Revenue increased by 4% to US$500.8 million
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 12% to US$256.1 million
Net profit increased by 7% to US$184.2 million
VIP rollings increased by 11% to US$8.7 billion
Mass Market table buy-ins increased by 12% to US$617.8 million
Mass Market electronic gaming machines bills-in increased by 9% to US$1.5 billion
Basic earnings per share of US cents 7.89
A final dividend for Shareholders and a distribution for the holder of the Convertible Bonds of US cent 0.82 per Share/Conversion Share (or equivalent to HK cents 6.36 per Share/Conversion Share) has been proposed.
The Final Dividend and Distribution shall be paid on Monday, 15 May 2017.

http://www.hkexnews.hk/listedco/listcon ... 208662.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Fri Feb 10, 2017 10:17 am

vested

New initiatives to penetrate into China, but regulatory overhang remains

Post FY16 result, NagaCorp announced partnership with Cambodia Government to increase Chinese visitation from 0.8 mn in 2016 to 2mn by 2020.

Management outlook is optimistic with business enhancements to increase quality Chinese players' visits, including
(1) expanding coverage and frequency of Bassaka Air
(2) offering integrated travel products and
(3) product upgrades.

While NagaWorld’s revenue growth near-term may plateau on a high comparison base and constrained capacity, we believe Naga2, which is targeted to open in 2H17 with business enhancements, could drive further growth in the medium term.

However, we believe the potential gaming bill, which is likely to be submitted in 1H17, remains an overhang, leading to:
(1) potential tax rate hike from currently 5% in FY16 to 8%, still remaining the lowest in the region;
(2) new rivalry, as the bill would introduce new integrated casino resorts; and
(3) more restrictive controls.

On higher revenue growth assumption, we revise up FY17-18E EPS by 3% and our TP to HK$4.70 (from HK$4.60).

We suggest to wait for a better entry point with more clarity on policy change. NEUTRAL

Source: CS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Thu Mar 09, 2017 11:15 am

vested

Dec 26, 2016

Nagaworld draws 'poor man VIPs' to Cambodian casinos

In Cambodia's crowded gaming market, Nagaworld's success rests on its unique status and appeal for local gamblers.

Of the 65 casinos operating in Cambodia, few are as sophisticated and none are as successful as Phnom Penh's NagaWorld.


The casino and hotel, which has 713 rooms and 87 mass-market gaming tables, is on a determined growth path, recently opening a luxury retail space and proceeding with plans to open a second complex, Naga 2, with more than 1,000 rooms and between 200-300 tables, within 2017.


The company is already planning a Naga 3, complete with more hotel facilities and possibly a theme park.

NagaCorp also plans to launch a gaming resort in Vladivostok, Russia, by 2018.


Source: Asia Nikkei

http://asia.nikkei.com/Business/Trends/ ... an-casinos
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Mon Mar 20, 2017 10:55 am

vested

Waiting for catalysts

Returns over the past 12 months flat; underperformed the Hang Seng Index by 22%.

Fundamental concerns on share dilution, growth and tax overhang.

Stock trading near record discount levels of 69% to Macau gaming sector, with trough valuations of 4x Bloomberg consensus FY17F EV/EBITDA.

Maintain Add but wait for catalysts.

Source: CIMB

https://brokingrfs.cimb.com/3_3AvG8r2aC ... YYuTw2.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: NagaCorp 3918 / Chen Lip Keong

Postby winston » Sun Mar 26, 2017 10:46 pm

Cambodia Casino Deal He Didn't Want Returns Malaysia's Chen To Billionaire Ranks

Only foreign passport holders are allowed to gamble


Dr Chen agreed to fund construction of NagaCity Walk – the shopping area that opened last August – and Naga2 through a convertible bond deal.


Its predominant mainland China play is in the mass market, aided by deals with China Travel Service and Naga associate Bassaka Air. Naga continues to benefit from and contribute to Cambodia’s growth.



by Muhammad Cohen

Source: Forbes

https://www.forbes.com/sites/muhammadco ... b0f2f01add
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to L to R

Who is online

Users browsing this forum: No registered users and 7 guests

cron