Genting Berhad / Lim Kok Thay

Re: Genting Berhad / Lim Kok Thay

Postby winston » Tue Mar 24, 2020 12:22 pm

not vested

Genting Bhd (GENT MK)
Share Price: MYR3.11
Target Price: MYR5.80
Recommendation: Buy

As cheap as it gets

Accounting for the recent cut in our GENM and GENS FY20E EPS estimates due to the Covid-19 pandemic, we cut our GENT FY20E EPS estimate by 25%.

That said, we leave FY21E/FY22E EPS estimates little changed at +1%/+0% as we do not believe the pandemic will lead to a long term downgrade in fundamentals.

GENT is trading at an extremely low 0.3x FY20E P/BV and all-time widest 65% discount to SOP/sh.

We trim our SOP-based TP to MYR5.80 from MYR6.30. Maintain BUY on GENT.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 60666d.pdf
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Tue Apr 28, 2020 1:26 pm

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What’s New

Earnings prospects to be impacted by lower contributions from GENS and GENM

Negatives priced in; stock trading at 0.4x book value, below 1998 lows

Commencement of RWLV to be a key re-rating catalyst

Maintain BUY with lower TP of RM5.55

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fddihkiia
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Thu Apr 30, 2020 9:13 am

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Is Genting worth a gamble now?

by Wong Ee Lin

KUALA LUMPUR (April 29): Genting Bhd, whose shares have been battered since the COVID-19 outbreak as casinos under the group were forced to suspend operations amid lockdowns across the globe, has garnered as many as 14 buy calls from 17 research houses covering the stock, according to Bloomberg data.

Among those who issued a 'buy' call on the stock is CGS-CIMB Research, which reiterated its recommendation to clients in a note sent out on Tuesday, with a target price of RM5.65 on the stock.

In particular, CGS-CIMB Research analyst Foong Choong Chen noted that Genting’s Resorts World Las Vegas (RWLV) is scheduled to open in summer 2021, with US$1.9 billion invested as at end-2019 and funding secured to complete the US$4.3 billion project.

"It has put in place an experienced top management (that have worked at other established Strip properties) and tied up with Hilton, bringing in three of its hotel brands and the ability to leverage the Hilton Honors database.

The Las Vegas Convention Centre phase 2 expansion (end-2020), the new Drew Las Vegas resort (end-2022) and RWLV itself could drive more visitor traffic in the coming years to the North Strip where it is located," Foong wrote.

CGS-CIMB expects RMLV will take time to establish itself in a competitive market, so its preliminary estimates are for net losses - excluding pre-opening expenses - of US$41m (RM178m) in FY21 and US$51m (RM222m) in FY22, with net profits from FY24.

However, should RWLV open in a severe economic recession, profitability may be pushed back to FY26 and estimated net losses may be higher at US$61 million (RM264 million) in FY21 and US$140 million (RM611m) in FY22.

"If RWLV does poorly, we do not rule out Genting injecting more equity to make up for shortfalls. However, Genting is ultimately not liable for RWLV’s substantial debt as they are ring-fenced to the project," Foong added.

While CGS-CIMB's new TP for Genting is lower than its previous target price of RM7.30, it still represents a potential upside of over 43% from its closing price of RM3.95 on Monday. The TP revision was made following the research firm’s recent earnings revision in Genting Malaysia Bhd (GenM) and Genting Singapore Ltd.

Accordingly, Foong slashed Genting's financial year ending Dec 31, 2020 (FY20)/(FY21)/(FY22) core earnings per share (EPS) by 52%/20%/15%.

“We prefer Genting over GenM as Genting offers greater upside even after applying a conservative valuation approach, except in a severe economic recession,” Fong wrote.

At market close today, the stock was up 10 sen or 2.54% at RM4.04, which gives it a market capitalisation of RM15.56 billion.

Out of 17 research houses covering Genting - which touched its lowest in about 16 years on March 19, at RM2.91 - only three has it on 'hold'. According to Bloomberg, the consensus target price is RM5.40, which indicates a potential upside of RM34% from its closing price today.

Year to date, Genting's share price has fallen 31.71%, while GenM has lost 28%.

When compared with some other casino operators in the region - which also experienced double-digit contractions in their share price - only NagaCorp Ltd performed slightly worse as it was down 32.43% since the beginning of this year. The rest saw declines of between 12.17% and 29.69%.

In terms of valuation, both Genting and GenM now appear cheaper than other casinos, with trailing 12 months price-to-earnings (TTM P/E) of 7.79 times and 9.27 times, respectively. Genting Singapore Ltd (GENS) has a TTM P/E of 13.4 times while other Macau-based casinos have between 9.87 times and 18.79 times.

Source: The Edge

https://www.theedgemarkets.com/article/ ... gamble-now
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Sun May 03, 2020 8:05 am

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Genting Bhd offers deep value despite closure of casinos and hotels

By GANESHWARAN KANA

Dividend play: A fund manager says Genting Bhd is a good dividend play, with a diversified business portfolio and proven revenue stream.

For the first time ever, all of its casinos globally that delivered close to 60% of its revenue in the financial year of 2019 (FY19), have been shut down simultaneously.

The operations of its non-gaming leisure and hospitality businesses such as hotels and theme parks - which contributed 24% of total revenue – also took a major hit as a result of the movement restrictions in the markets Genting group operates in.

Not only that, the impact of the virus outbreak, coupled by slowing market demand, was also seen in Genting Bhd’s other businesses such as plantations, property and oil and gas.

The year 2020 was supposed to be a key business year for Genting Bhd’s Malaysian operations, particularly in anticipation of higher tourist traffic spurred by the government’s Visit Malaysia Year (VMY) 2020 campaign.

However, VMY 2020 has since been cancelled in response to the Covid-19 outbreak and this has disrupted the potential earnings for the group this year.

After all, the Malaysian operations are the single largest top line contributor for the group.

For context, the Genting group comprises four public companies listed on the stock exchanges of Malaysia and Singapore – namely Genting Bhd, Genting Malaysia, Genting Plantations and Genting Singapore.

CGS-CIMB Research has cut its core earnings per share estimate for FY20 by a whopping 51.5% and expects Genting Bhd to skip dividend payments in the first half of FY20 (2H20).

Meanwhile, AllianceDBS Research analyst Cheah King Yoong reduced his earnings estimates by 39% for FY20, mainly to reflect the reduction in earnings estimates of Genting Singapore and Genting Malaysia.

Commenting on Genting Malaysia’s outlook, Maybank IB Research analyst Samuel Yin Shao Yang expects the company to fall into the red in FY20.

He has cut Genting Malaysia’s earnings estimate for FY20 by nearly a billion ringgit to a net loss of RM290mil.

He also expects that all Genting Malaysia’s all casinos will take about six months to return to normalcy after reopening.

With regard to the group’s plantation and property businesses held through Genting Plantations Bhd, Affin Hwang Capital Research analyst Nadia Aquidah says that the company is affected by the weak market demand and crude oil price environment.

“We expect Genting Plantations’ FY20 earnings to decline year-on-year due to lower consumption of palm-oil products and a slowdown in property sales, ” she says.

Based on Bloomberg data, a total of 14 analysts have a “buy” call on Genting Bhd, while three analysts recommend a “hold”. There is no “sell” call on Genting Bhd.

AllianceDBS Research’s Cheah, who also has a “buy” view on Genting, says the counter offers cheaper exposure to subsidiaries.

“We believe that Genting Bhd continues to offer deep value. Furthermore, the stock has dropped by over 30% on a year-to-date basis, which we believe has priced in the negatives.

Speaking with StarBizWeek, Fortress Capital Asset Management chief executive officer Thomas Yong believes that Genting’s casino and hospitality businesses are unlikely to return to normal operating levels anytime soon.

“Moving forward, a key upside for the Group is the opening of Resorts World Genting’s outdoor theme park, which could happen in the third or fourth quarter. That should provide good support to the group’s earnings, ” he says.

Source: The Star

https://www.thestar.com.my/business/bus ... and-hotels
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Mon Jul 20, 2020 9:54 am

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Genting Bhd
ADD, TP RM5.60, RM4.06 close

While we expect GENT’s FY20F core EPS to tumble 84.5% due to weaker GENM and Genting Singapore (GENS) earnings (impact of MCO and circuit breaker), we see FY21F/22F core EPS
rebounding strongly by 330.5%/11.1% yoy post-Covid-19, which should act as re-rating catalysts.

Source: CIMB
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Re: Genting Berhad / Lim Kok Thay

Postby behappyalways » Sat Aug 22, 2020 12:29 pm

Genting Bhd shares tumble on cruise firm debt woes
https://www.theedgesingapore.com/news/c ... -debt-woes
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Fri Aug 28, 2020 8:04 am

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2Q, 2020 Results

Genting Bhd’s net loss ballooned almost six times to RM786.06 million for the second quarter ended June 30, 2020 (2QFY20) compared with RM132.3 million in the preceding quarter as the COVID-19 pandemic dealt a big blow to its leisure and hospitality business.

The quarter revenue of the diversified group, which owns two listed casino operators, was down 73% to RM1.11 billion from RM4.11 billion for 1QFY20.

Despite the steep losses, it has declared an interim single-tier dividend of 6.5 sen.

Source: The Edge
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Mon Aug 31, 2020 8:40 am

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Back to winning ways in FY21-22F

Worse-than-expected 2Q20 core net loss of RM664m due to GENM & GENS (Covid-19 closures), but interim DPS was a positive surprise.

We now expect RM611m core net loss in FY20F, before FY21-22F recovery.

Reiterate Add with a 2% higher SOP-based target price of RM5.70.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AA866EC0DE
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Mon Aug 31, 2020 9:24 am

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Turning cautious on Resorts World Las Vegas

2Q20/1H20 core net loss was below our expectations.

Yet, the interim DPS was above our expectations.

We cut our FY20E and FY21E earnings by ~MYR600m on a slower-than-expected recovery.

Also, we cut our SOP-based TP to MYR3.62 from MYR5.35 as we are turning cautious on Resorts World Las Vegas’ prospects given that the COVID-19 pandemic is raging in the United States. Thus, we downgrade GENT to HOLD from BUY.

Prefer Genting Malaysia (GENM MK, BUY, CP: MYR2.28, TP: MYR2.74).

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... e54312.pdf
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Re: Genting Berhad / Lim Kok Thay

Postby winston » Tue Oct 13, 2020 12:47 pm

Genting facing risks on multiple fronts: Maybank IB Research

by Ben Blaschke

Maybank IB Research has trimmed its share price target for global gaming giant Genting Berhad by 10% to MYR3.26 on concerns over “governance and social issues.”

“We forecast Empire Resorts to contribute more than MYR100 million (US$24 million) in losses per annum”.

Maybank IB Research is also “unsure” if Genting’s US$4 billion Resorts World Las Vegas project, due to open in 2021, will be profitable going forward.

Danger of falling off the FTSE Bursa Malaysia KLCI – a capitalization-weighted stock market index comprised of the 30 largest companies on Bursa Malaysia by market cap.

Reviewed twice yearly, the next review is due on 23 November.


Source: Inside Asian Gaming

https://www.asgam.com/index.php/2020/10 ... -research/
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