Genting Berhad / Lim Kok Thay

[winston]

not vested

Riding on the positive GENS earnings surprise

Lift TP by 39% to MYR4.54 but maintain HOLD call

3Q20 results outperformed our expectations as stronger-than-expected GENS results more than offset weaker-than-expected GENM results.

4Q20 results ought to be better due to non-recurrence of the high 3Q20 tax expense at GENM.

We narrow our FY20E net loss by 39%, tweak our FY21E/FY22E net profit by 6%/3% and raise our TP to MYR4.54 from MYR3.26 as we are less bearish on Resorts World Las Vegas (RWLV) due to
the development of COVID-19 vaccines.

Maintain HOLD call.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/2 ... 9433a2.pdf

[winston]

not vested

Genting Bhd
Look beyond Covid-19 headwinds in 4Q20F

Narrower-than-expected 3Q20 core net loss led by GENM, GENS & GENP.

We expect FY20F core net loss of RM290m to recover in FY21-22F.

Reiterate Add with a 12% higher SOP-based target price of RM6.40.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9DBF410133

[winston]

not vested

Resorts World Casino New York City says it generated over US$3b for New York Lottery's education fund since 2011

by Ahmad Naqib Idris

KUALA LUMPUR (Dec 4): Genting Malaysia Bhd’s (GenM) Resorts World Casino New York City (RWNY), New York’s largest taxpayer, said it had generated more than US$3 billion for New York Lottery's education fund since opening in 2011.

Over the past nine years, the group generated enough revenue to fund either 12 million laptops for students, 37,500 public school teachers' salaries, fully fund public education for 150,000 students for one school year, or 6.08 million students with school lunch for an entire school year.

The group said New York Lottery is North America’s largest and most profitable lottery, contributing US$3.38 billion (about RM13.73 billion) in fiscal year 2019-2020, of which RWNY generated US$348 million, the biggest share versus other video-gaming operators in New York.

RWNY will be increasing its investment in the state with US$400 million through its plans for a new hotel — the Hyatt Regency JFK at Resorts World New York.

“This US$400 million development will bring the total investment of RWNY to over US$1.1 billion since opening — after Genting spent more than US$700 million to enhance the existing Aqueduct grandstand to become a leading entertainment destination.

Source: The Edge

https://www.theedgemarkets.com/article/ ... -education

[winston]

Genting — Earnings recovery seen moving forward

Its plantation business under Genting Plantation is expected to benefit from rising crude palm oil prices, while Genting Singapore is expected to see earnings recovery due to well-controlled Covid-19 cases in the country.

Chart-wise, share price is trading above all key moving averages line, which is a good sign

Source: The Edge

[winston]

not vested

Lacks catalysts but still good as a liquid recovery play

Maintain BUY with a lower TP of MYR5.58 (-11%) 2Q21 and 1H21 losses were in-line but nil dividends disappointed us.

Resorts World Las Vegas (RWLV) is tracking within our expectations but we still do not expect it to be profitable.

We widen our FY21E core net loss by nearly 3x but leave our FY22-FY23E core net profit little changed.

With two major catalysts shelved, we cut our SOP-based TP to MYR5.58 from MYR6.26.

In our view, GENT is still good as a liquid COVID-19 recovery play but we prefer GENM.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/232538.pdf

[winston]

not vested

Could have been better but still a good liquid recovery play

Maintain BUY call and tweak TP to MYR5.48 (+3sen)

4Q21/FY21 losses were wider than we expected due to more losses from an associate and a deferred tax charge.

That said, dividends positively surprised us.

Going forward, GENT’s earnings recovery will be gradual especially at GENS.
Thus, we cut FY22E/FY23E earnings by 30%/23%.

Yet, we continue to like GENT as a liquid recovery play and tweak our SOP based TP to MYR5.48 from MYR5.45 as we roll forward our valuation base year to end-FY22E from end-FY21E.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/253058.pdf

[winston]

not vested

Odds are in favour of the house in FY22F

FY21 core net loss (ex-RWLV loss) of RM1.1bn was a miss due to GENS

FY22F core NP may rebound to RM800m, then up 58%/27% in FY23F/24F.

Reiterate Add with slightly lower SOP-based TP of RM6.85.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AAD16E3DF2

[winston]

not vested

MGM to buy GENT’s 53% shareholding in GENS?

Maintain BUY call and MYR5.96 SOP-based TP

Bloomberg reported that multiple suitors, including MGM Resorts International have approached GENT to buy its 53% shareholding in GENS (link).

In our view, there are reasons for and against GENT acquiescing.

No matter the outcome, this news reiterates our view that GENT is deep in value. Maintain earnings estimates, BUY call and MYR5.96 SOP-based TP for now.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/269857.pdf

[winston]

Earnings on the mend; DPS restored

2Q22 core net profit of RM89m missed due to GENM; DPS restored to 7 sen.

Better GENM & GENP earnings more than offset yoy weaker GENS.

Reiterate Add, with a 4% higher SOP-based TP of RM7.20.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8B4DB7B746

[winston]

not vested

Still a good reopening play with TauRx call option
Maintain BUY with a lower MYR5.25 SOP-TP

GENT’s 2Q22 earnings were dragged by high coal prices at 49%-owned Meizhou Wan. Thus, we cut our earnings estimates by MYR150mMYR155m p.a. and trim our SOP-based TP to MYR5.25 from MYR5.96.

Notwithstanding, we remain optimistic on GENT’s long term outlook.

Come 4Q22, GENT may receive another boost from 20%-owned TauRx releasing positive topline results. Should that occur, we estimate that GENT shares could be worth MYR8.57 each.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/278991.pdf