Genting Malaysia

Genting Malaysia

Postby winston » Fri May 27, 2011 9:46 am

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Valuation/Recommendationï‚·

We lift our target price but not enough catalysts to upgrade our HOLD call. We lift our target price from RM3.30 to RM3.79 to account for an improved outlook at GENUK and after eliminating an earlier assumed 5% discount to our RNAV/share.

At this stage, we reckon investors would no longer penalise the company for its pricey acquisition of GENUK.

Nevertheless, we prefer Genting Bhd. We still prefer holding company Genting Bhd (BUY/Target: RM13.63) for its exposure to the Genting group. We do not foresee any major capital management exercise this year (only a 8 sen/share dividend was declared for 2010, yielding 2.2%).

Our target price values the stock at 14.7x 2011F PE and 13.5x 2012F PE.

Our entry price is RM3.40.


Share Price Catalystï‚·

Earnings-accretive acquisitions or meaningful capital management.
Stronger-than-expected earnings growth in the UK, the US and Malaysia.

http://research.uobkayhian.com/content_ ... 7920aef719
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Re: Genting Malaysia

Postby winston » Mon May 30, 2011 9:58 am

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Genting Malaysia Bhd [GENM MK] - Buy : Off to the Miami( RM3.62 / PT: RM4.39 ) by Wai Kee Choong; Raashi Gupta

Genting Malaysia announced today that it has completed the acquisition of 14.0 acres of Miami land, including the building housing The Miami Herald Media Company (a subsidiary of McClatchy) and an adjacent parking lot, for $236mn to be part funded by borrowings of ~USD200mn.

There is no immediate plan (or capex) for the land since Miami Herald Media Company will continue to operate from its existing location for up to two years rent free.

Maintaining our Buy rating.

Source: Nomura
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Re: Genting Malaysia

Postby winston » Mon Jan 14, 2013 10:49 am

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Maybank Research maintains Buy on Genting Malaysia

KUALA LUMPUR: Maybank Investment Bank Research is maintaining its Buy call for Genting Malaysia and a target price of RM4.18.

It said on Monday the share price fell 4% last Friday on New York Governor Andrew Cuomo's proposal for three commercial casinos in upstate locations only.

"For Genting Malaysia, the ideal situation is to upgrade Resorts World New York (RWNY), located in New York City (NYC), into a commercial casino. We are unperturbed, as the proposals have yet to be approved; NYC casinos have not been ruled out; and upstate casinos may eventually be located very near NYC," it said.

Maybank Research said the first constitutional amendment (CA) that was passed in March 2012 allowed seven commercial casinos in both upstate and downstate (NYC) locations. A second CA must be passed this year followed by a referendum slated for Nov 2013.

It pointed out if Cuomo were to alter the CA to match his proposal, he would require the approval of the legislature. Some lawmakers have already objected to his proposal, as they prefer that the casinos be located in NYC.

Shortly after his proposal, Mr. Cuomo stated that he did not rule out commercial casinos in NYC for "Phase 2".

" We believe that this is because not many gaming companies are willing to invest heavily in upstate casinos when footfall is higher in NYC. NYC welcomed a whopping 50 million visitors in 2012. Simple economics will likely compel him to revisit the idea of NYC casinos in the future," it said.

Maybank Research said native American tribes, especially the Senecas, operate casinos on their lands in western and northern New York. Their agreement with the state preclude the latter from opening commercial casinos on or near their lands. Also, Cuomo stated that "upstate" means north of the Bronx in NYC. This means that the three upstate casinos may be located just north of NYC.

"As Resorts World NY is located in NYC, Genting Malaysia may not be able to upgrade it into a commercial casino under Cuomo's proposal.

"That said, we are unperturbed as under the same proposal, (i) no commercial casinos will compete with RWNY within NYC and (ii) Genting Malaysia can still bid to build a casino in an upstate location very near NYC. Therefore, we are still bullish on Genting Malaysia's M&A prospects," said the research house.

Source: Reuters
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Re: Genting Malaysia

Postby winston » Fri Nov 14, 2014 10:14 am

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CIMB Research maintains Add on Genting Malaysia, ups target price to RM5.90


KUALA LUMPUR (Nov 14): CIMB Research has maintained its Add rating on Genting Malaysia Bhd (GenM) at RM4.09 with a higher target price of RM5.90 (from RM5.70) and said that as the sole casino monopoly in the region, it was insulated from the anti-corruption crackdown in China as its customers are local mass market and Asean-based VIPs.

In a note Nov 13, the research house said a casino licence win in New York and expansion in gaming capacity in 2016 were strong re-rating catalysts, adding that GenM was its top pick in the gaming sector.

“We maintain our Add rating with an increased target price, as we add 38 sen to our RNAV to account for a New York (NY) casino win, and rollover into FY16.

“We cut FY14-16 earnings by 14-34% for poor 1H14 results, negative impact of GST and delay of the new casino tables at Genting to FY16 from FY15.

“In the unlikely event of the failure to win a single licence, our worst-case target price of RM5.48 still offers 34% upside,” it said.

At 9.39am, GenM rose 0.25% or one sen to RM4.07 with 14,500 shares done.

Source: The Edge
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Re: Genting Malaysia

Postby winston » Thu Apr 07, 2016 8:00 am

Genting M'sia seeks new mandate to sell GenHK shares

KUALA LUMPUR: Genting Malaysia Bhd (GenM) wants shareholders to give its indirect unit Resorts World Ltd another year to sell its 16.87% stake in cruise operator Genting Hong Kong Ltd (GenHK).

GenM told Bursa Malaysia on Wednesday that it was seeking the renewal of the share disposal mandate given earlier, as the validity period for the mandate would expire on July 1.

The new proposed mandate would be valid for a period of one year from the date of approval of GenM’s non-interested shareholders at an EGM to be convened. The minimum disposal price per share this time, however, would be 29 US cents (RM1.14), compared with 33 US cents (RM1.29) proposed under the original mandate.

GenM said after receiving the approval for the current disposal mandate, Resorts World Ltd had engaged brokers to advise and assist on the placement of the disposal shares to potential investors.

However, it was unable to dispose of any GenHK share due to, among others, the share price being traded below the minimum disposal price of 33 US cents for most of the time since the approval was secured in July 2015.

GenHK, majority-controlled by chairman Tan Sri Lim Kok Thay, operates Star Cruises, Crystal Cruises, Dream Cruises (a recently-launched Asia-based premium cruise brand) and Resorts World Manila.

On the rationale for the disposal, GenM said the disposal shares were considered non-core investments and were treated as “assets held for sale” in the GenM group’s financial statements.

“Further, the GenM group does not have any board seat on GenHK in respect of its equity interest in GenHK,” it said.

The earlier mandate was to sell 1.431 billion shares - the same number of shares - which at that time represented 17.81% of GenHK’s paid-up capital.

The minimum disposal price of 33 US cents was 21.4% lower than the group’s original cost of investment.

GenM said the original cost of investment in the disposal shares was US$604.1mil (RM2.37bil), representing an average purchase price of 42 US cents (RM1.65) per share.


At the EGM to seek GenM shareholders’ mandate on July 2, 2015, non-interested shareholders owning 24.16% of its shares voted against giving the mandate. According to a report, some shareholders deemed the disposal price as too low.

Since the mandate was given, GenHK has continued to expand by acquiring Crystal Cruises, launching Dream Cruises and buying four shipyards in Germany.

Genting Malaysia shares gained 2 sen to close at RM4.57 on Wednesday.

Source: the Star
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Re: Genting Malaysia

Postby winston » Fri Aug 26, 2016 8:12 am

Genting M’sia earnings soars on UK business turnaround

KUALA LUMPUR: Genting Malaysia Bhd more than doubled its second-quarter (Q2) earnings to RM476.44mil from a year earlier, mainly due to a turnaround in its UK casino business.

The UK revenue soared 70.7% to RM504.2mil, mainly contributed by the premium players business as a result of “revised marketing strategies adopted.”.


Source: The Star


http://www.thestar.com.my/business/busi ... urnaround/
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Re: Genting Malaysia

Postby winston » Fri Aug 26, 2016 8:12 am

Genting M’sia earnings soars on UK business turnaround

KUALA LUMPUR: Genting Malaysia Bhd more than doubled its second-quarter (Q2) earnings to RM476.44mil from a year earlier, mainly due to a turnaround in its UK casino business.

The UK revenue soared 70.7% to RM504.2mil, mainly contributed by the premium players business as a result of “revised marketing strategies adopted.”.


Source: The Star


http://www.thestar.com.my/business/busi ... urnaround/
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Re: Genting Malaysia

Postby winston » Tue Sep 20, 2016 6:14 am

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Genting Malaysia remains Buy with target price of RM5

KUALA LUMPUR: Affin Hwang Capital Research retains its Buy call for Genting Malaysia with a target price of RM5 as key facilities under its Genting Integrated Tourism Plan (GITP) is on track for a soft opening by year-end.

It said on Monday the facilities are the new cable car system, Sky Avenue and Sky Plaza shopping mall and multi-storey car park.

“We like Genting Malaysia for the potential in earnings growth from additional gaming facilities and non-gaming revenue (that is, retail and theme parks).

“Our realised net asset value (RNAV) based 12-month target price of RM5 implies a 2017E price-to-earnings ratio (PER) of 17.8 times, which is comparable to forward PERs of US gaming companies and lower than that of Genting Singapore,” it said.

Affin Hwang Research said the potential catalysts for Genting Malaysia include the commissioning of the podium in 2H16 and the opening of the Fox World theme park in 2017. The risk is a delay in execution of the GITP.

The podium, which houses additional gaming capacity, should also be ready by year-end.

“We see this as a key catalyst since domestic operations account for c.80% of group earnings. The 20th Century Fox World theme park is scheduled to open by end-2017,” it said.

Affin Hwang Research was positive on the revised marketing strategies adopted in the UK, which helped to grow the premium mass segment and mitigate the on-year decline in VIP volume (2Q16: -30% vs 1Q16: -40%).

Together with a better luck factor and tighter credit control, this has led to much better results from the UK (1H16 revenue grew 59% on-year) and a more balanced split in gross gaming revenue between mass and VIP,” said the research house.

Source: The Star

http://www.thestar.com.my/business/busi ... ce-of-rm5/
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Re: Genting Malaysia

Postby winston » Thu Oct 13, 2016 2:22 pm

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GITP Momentum Is Building Up

We expect the good development progress on the soon-to-be-opened GITP project to continue to drive up GENM’s share price and overshadow the company’s earnings dilutive overseas operation in the near term.

GENM’s share price has risen 6% and hit the all-time high since our upgrade on 23 September.

We maintain our BUY call, more on trading opportunity, as the share price could overshoot its fair value in the near term.

Maintain BUY. Target price: RM5.10.

Source: CIMB

https://research.uobkayhian.com/content ... 300e9da4f7
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Re: Genting Malaysia

Postby winston » Fri Nov 25, 2016 9:25 am

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Genting Malaysia

Lower tax boosts earnings

9M16 core net profit of RM1.1bn above expectations at 83% of our and Bloomberg consensus full-year forecasts.

Boost from lower effective tax rate on investment tax allowance for GITP capex.

Mass market softness in Genting Highlands partially mitigated by stronger foreign spending.

We raise our FY16F EPS by 12% but trim our FY17F-18F EPS by 2%.

Maintain Add. Target price rises on rollover to end-17. GENM is our only Add in the sector.

Add maintained

We raise our RNAV-based target price to RM5.69 after rolling over our valuation to end-2017.

GENM remains our only Add call in the Malaysian gaming sector.

GENM has started to outperform the KLCI three months ago and we expect this outperformance to continue into 2017 as its new gaming capacity opens at the end of 2016 and the various attractions open in 2017.

Key risk to our target price is further delays in the opening of the 20th Century Fox theme park.


Source: CIMB

https://brokingrfs.cimb.com/Jlbr-XD667y ... gcUWg2.pdf
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