Genting Malaysia

Re: Genting Malaysia

Postby winston » Thu Aug 08, 2019 6:56 am

vested

RHB Research is neutral on the Empire proposal and believed that the total acquisition price of US$180mil (RM754mil) for GenM to own 49% of ER via the proposed JV was insignificant, at c.3.5% and 4.3% of GenM’s market cap and net assets.

“While the acquisitions are not value accretive (at 1.9x P/BVvs GENM’s current P/BVof 1.2x) and may negatively affect our earnings forecasts, the acquisition price appears to be fair compared to the potential GGR of over USS$200mil and US$1bil cost to construct RWC,” it said.

The research house added that undertaking a similar greenfield expansion of such a scale (along with a licence) would likely cost more, based on its estimates.

RHB has reiterated its “buy” call on GenM with an unchanged SOP-derived target price of RM4.40, 22% upside plus 4.4% FY19F yield.

Source: The Star

https://www.thestar.com.my/business/201 ... HfzStvw.99
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Thu Aug 08, 2019 9:59 pm

What’s New

Acquiring loss-making Empire Resorts for USD128.6m in a related party transaction

Empire reported FY18 net loss of USD138.7m

If Empire losses persist, FY20-21 earnings forecasts could be diluted by >20%

Downgrade to FULLY VALUED with lower TP of RM3.15

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ehbbakiia
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Thu Aug 08, 2019 10:06 pm

vested

A related party transaction but with a twist this time

Maintain earnings estimates but downgrade to HOLD

GENM will privatise the currently loss making Empire Resorts with Kien Huat Realty, which is controlled by the Lim family.

Pending more details, we maintain our earnings estimates and MYR3.80 TP.

But with <10% upside, we downgrade GENM to HOLD from BUY.

In our view, Empire Resorts’ current fundamentals are wanting but with Kien Huat Realty
owning the larger 51% of the JV that will own Empire Resorts, we gather the Lim family may be more sanguine on its outlook.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... e987d1.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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Thu Aug 08, 2019 10:06 pm

vested

A related party transaction but with a twist this time

Maintain earnings estimates but downgrade to HOLD

GENM will privatise the currently loss making Empire Resorts with Kien Huat Realty, which is controlled by the Lim family.

Pending more details, we maintain our earnings estimates and MYR3.80 TP.

But with <10% upside, we downgrade GENM to HOLD from BUY.

In our view, Empire Resorts’ current fundamentals are wanting but with Kien Huat Realty
owning the larger 51% of the JV that will own Empire Resorts, we gather the Lim family may be more sanguine on its outlook.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... e987d1.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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Fri Aug 09, 2019 9:10 am

vested

Technical Tracker - HLIB Retail Research
Trading Buy: GENM - 4715
Limited downside risk amid undemanding valuations
(Last price: RM3.23, Potential upside +13.0%)

Company Profile
Genting Malaysia offers gaming, leisure and hospitality services in Malaysia, UK and US.


Trading Catalyst

After hitting YTD high of RM4.00 (26 July) following the GENM-Walt Disney/21st Century Fox lawsuit resolution, the stock plunged to a low of RM3.08 after a surprise related-party transaction.

GENM’s downside may be limited on the back of undemanding valuation at 1.02x P/B (32% below 10Y average of 1.5x) and 15.5x FY20 P/E (8.3% below 10Y average of 16.9x).

Technically, GENM is poised for potential downtrend reversal following the spinning top pattern, with upside targets at RM3.35-3.65 in the mid to long term, supported by the dispute resolution with Fox and clearer direction of the outdoor theme park.

Technical View
Resistance: RM3.35 / RM3.54 / RM3.65
Support: RM3.08 / RM3.00
Cut loss: RM2.98

Key Financial Stats
Trading at 15.5x FY20E (8.3% below its 10Y mean of 16.9x) and 1.02x P/B (32% below 10Y average 1.5x)

Source: Bloomberg, HLIB
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Tue Aug 13, 2019 7:28 am

vested in Genting Msia and Genting Berhad

Sullivan casino’s parent company considers bankruptcy

By Daniel Axelrod

THOMPSON – Empire Resorts, parent company of Resorts World Catskills casino, recorded a second-quarter 2019 loss of $35.96 million on revenue of $60.07 million and operating expenses of $79.94 million, according to a Friday financial filing.

The company, which owns the Town of Thompson casino and the Monticello Raceway horse track, cautioned that it’s considering a voluntary, prepackaged Chapter 11 bankruptcy, according to a Friday Securities and Exchange Commission filing.

The warning follows six of months of 2019 losses totaling $73.5 million. From the casino’s Feb. 8, 2018 opening through the end of last June, Empire has reported $211.5 million in losses, an average of roughly $12.4 million per month.

The losses are due to gross gaming revenues that lagged 45 percent below company projections in year-one alone, in a Northeast market over-saturated with gambling options.

Plus, the company is over-leveraged. It paid $35.86 million in interest, through the first six months of 2019, on the $487.5 million debt load it took on to build the $928 million casino.

If the company seeks a prepackaged bankruptcy, it would be to smooth and accelerate a Chapter 11 filing. Empire and its creditors would try to agree on a financial reorganization plan before the company submitted it for court approval.

A prepackaged bankruptcy would be Empire’s only option to avoid breaching its debt covenants if it pursues Chapter 11 protection, the company stated in its Friday filing.

If the company can’t restructure its debt and other obligations, “we may not have enough cash and working capital to fund the operations,” the company warned. “As a result, we may be required to seek to implement an in-court proceeding under Chapter 11 of the United States Bankruptcy Code” to cover expenses for the casino, its hotels and future golf course.

On July 25, Malaysian-Chinese casino magnate K.T. Lim, whose family trust Kien Huat Realty owns 86 percent of Empire, said he wants to buy the company’s outstanding shares to save it.

Such an acquisition by Kien Huat would make bankruptcy, and any accompanying debt reduction, easier because Empire’s debt holders would be negotiating with just a Lim-controlled business entity.

On Monday, Lim revealed that he wants to take control of Empire by teaming with his other casino company, Genting Malaysia, to form a holding company that would buy up Empire’s stock for $9.74 per share.

Via Kien Huat, Lim’s family is the largest shareholder in Genting Malaysia, a giant, publicly traded, transnational casino and entertainment company. Lim also serves as Genting Malaysia’s chairman and CEO.

Genting Malaysia agreed on Monday to spend $128.6 million to buy 46 percent of the Lim family’s Empire stake or 35 percent of Empire’s voting power on a fully diluted basis after the conversion of all preferred stock into common stock.

Pending the sale’s closure, a new Genting Malaysia-Kien Huat holding company will make its buyout offer to Empire’s remaining shareholders.

In a July 25 statement, Stefan Friedman, a spokesman for Genting and Lim, reaffirmed Lim’s “strong commitment” to the casino, adding that “Mr. Lim believes in the long-term potential of Resorts Word Casino Catskills.”

Besides Empire struggling with debt and heavy gaming competition, gaming experts have traced the casino’s problems to its location.

State leaders pitched the 2013 effort to authorize four non-Indian casinos as a way to bring jobs and investment to economically disadvantaged upstate areas. And the casino has been successful in that regard, employing 1,756 full-time and 100 part-time employees as of the end of 2018.

But if state leaders prioritized economic viability, they would have allowed one or two casinos closer to New York City, not four casinos in cash-strapped, customer-short upstate areas with limited demand and spending power, gaming experts have told the Times Herald-Record.

One way Lim hopes to turnaround Empire’s fortunes is by bringing more electronic gaming nearer to the city. Genting’s electronic slots at Aqueduct Racetrack in Queens have been wildly successful in recent years.

And Empire plans to seek state gaming commission approval to place a digital gaming parlor in Orange County, with the former Nepera Chemical complex in the Village of Harriman under consideration as a site.

Before NFL season begins, Resorts World Catskills also intends to introduce sports betting, though state law will only permit bets to be placed at the casino in Thompson. And the first nine holes of the casino’s revamped Monster golf course will soon be complete.

Of late, another bright spot for the casino has been a rise in gross gaming revenues for slot machines, which surpassed $11 million per month, respectively, in May, June and July, according to the state Gaming Commission. That’s up from as low as about $6 million per month in the past.

The casino’s daily per machine winnings averaged a healthy $236 last month, after Resorts World Catskills shed machines, dropping to 1,600 in May from 2,157 when it opened. A new poker area recently replaced the empty space.

Gross gaming revenues for table games have been even healthier in recent months, averaging a robust $1,932.02 per table per day in July for 151 tables.

Source: Record Online

https://www.recordonline.com/news/20190 ... bankruptcy
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Tue Aug 13, 2019 11:40 am

Empire Resorts on the brink of filing for bankruptcy

by Kathy Fong

To recap, news of GenM buying the 46% stake in loss-making Empire from Kien Huat, Lim’s investment vehicle, had sparked fierce selling of its shares as well as those of its parent, Genting Bhd.

Some RM2.6 billion was wiped from GenM’s market capitalisation last Wednesday, and Genting saw RM1.8 billion evaporated following news of the related party transaction.

Judging by Empire’s latest announcement, it is likely its shareholders, including GenM, will have to inject more capital to sustain Resorts World Catskills’ operations moving forward.


Source: The Edge Financial Daily

https://www.theedgemarkets.com/article/ ... bankruptcy
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Wed Aug 14, 2019 12:10 pm

vested

Empire in a challenging state

Empire considering filing for voluntary bankruptcy to restructure its financial obligations

Further capital injection may be needed

If Empire’s losses are sustained, GENM’s FY20-21F earnings could be diluted by >20%

Maintain FULLY VALUED; more downside risks to our earnings estimates and RM3.15 TP.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ehccjkiia
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Wed Aug 14, 2019 12:10 pm

vested

Empire in a challenging state

Empire considering filing for voluntary bankruptcy to restructure its financial obligations

Further capital injection may be needed

If Empire’s losses are sustained, GENM’s FY20-21F earnings could be diluted by >20%

Maintain FULLY VALUED; more downside risks to our earnings estimates and RM3.15 TP.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ehccjkiia
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: 105020
Joined: Wed May 07, 2008 9:28 am

Re: Genting Malaysia

Postby winston » Fri Aug 16, 2019 8:12 am

not vested

Genting Malaysia defends Empire Resorts deal

KUALA LUMPUR: Genting Malaysia Bhd has defended its plan to acquire financially troubled Empire Resorts Inc, saying that the move will benefit all stakeholders.

"The company has carefully evaluated the investment into Empire Resorts and has deemed it a worthwhile investment based on numerous factors," it said.

Genting Malaysia was responding to a query from Bursa Malaysia Securities, the exchange operator, over its decision to buy a stake in the Nasdaq-listed from a trust controlled by Genting Group chairman and chief executive Tan Sri Lim Kok Thay.

Genting Malaysia told the exchange on Thursday that the proposed corporate exercise would give the US casino operator an opportunity to resolve its liquidity challenges.

It said the investment would enable Empire Resorts to complete its projects and turn around its finances.

In its recent quarterly report, Empire Resorts had identified multiple options to address its current liquidity challenges.

This includes seeking arrangements to provide additional liquidity, making reductions to its cost structure, restructuring its and its subsidiaries existing debt terms, as well as pursuing the joint non-binding proposal submitted by Genting Malaysia and Lim's Kien Huat Realty III Ltd.

"If these alternatives are unsuccessful, Empire Resorts has indicated that it may pursue a voluntary Chapter 11 bankruptcy proceeding in respect of its subsidiary that owns the Catskills casino operations.

"Genting Malaysia strongly believes that the proposal is the best alternative available for Empire Resorts' stockholders, and that the proposal is also in the best interest of Genting Malaysia's shareholders," it said.

Last Wednesday, Genting Malaysia announced that it was buying a 46% stake in the loss-making Empire Resorts for RM539mil. It is further proposing a joint venture between Genting Malaysia and Kien Huat to gain full control of Empire Resorts.

Source: The Star

Read more at https://www.thestar.com.my/business/bus ... FuewCaB.99
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: 105020
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to E to K

Who is online

Users browsing this forum: No registered users and 1 guest

cron