Genting Malaysia

Re: Genting Malaysia

Postby winston » Thu Apr 18, 2019 7:09 am

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GenM could see upsides from developments in US

KUALA LUMPUR: Genting Malaysia Bhd could stand to benefit from several developments taking place in the US, says Affin Hwang Capital research.

In a note, the research house said the US House Committee on Natural Resources is chairing a legislative hearing on a bill that could reverse an earlier court decision, which could pave the pay for the Mashpee tribe to build a casino on contested land, said Affin Hwang.

GenM had previously written off its RM1.8bil investment in its Mashpee notes in its 3Q18 results owing to a court ruling that the tribe did not meet certain requirements to allow it to have a tract of land in trust for an integrated gaming resort development.

Meanwhile, the research house said GenM's Resort World Casino New York could play a role in the US$10bil sports betting market, depending on the outcome of a senate bill.

In Florida, the state is negotiating with the Seminole Tribe on their “exclusive” rights to offer banked card games in the state, which contributed USD$350m/year to the state.

"The state could expand gaming if the negotiation falls through to fill the budget gap, potentially benefiting GENM, in our view," said Affin Hwang.

The research house said any favourable outcome could improve investor sentiment on GenM, which remains its top pick for the gaming sector.

It maintained its buy call with an unchanged target price of RM3.80.

Source: The Star

https://www.thestar.com.my/business/bus ... WEmhGRq.99
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Re: Genting Malaysia

Postby winston » Sat Apr 20, 2019 6:27 pm

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Eye On Stock - Genting Malaysia

GENTING Malaysia Bhd (code: 4715) appeared to be initiating a rebound in Friday trading as it turned higher to cross the 100-day simple moving average (SMA) on bullish momentum.

Breaking free of the moving average at RM3.15 in intra-day trade, the counter appears to be regaining some strength after retreating from the RM3.47 resistance on March 18.

Based on the daily price chart, the share price is moving below the key SMA lines, which suggests a bearish outlook.

The 14- and 21-day SMAs remain at descending angles, which signals the immediate downtrend remains intact. However, another session of buying would likely turn the short-term moving averages towards a bullish posture.

Should the rebound take root, the stock could be aiming higher for a positive crossing with the 50-day SMA at RM3.28, which would indicate a return to positive sentiment.

There is optimism that the share price is angling for yet another challenge to the RM3.47 mark, having been turned back twice in recent months.

https://www.thestar.com.my/business/bus ... 0d9ec.ashx

The momentum indicators show a strong return from oversold levels following Friday’s share price advance.

The slow-stochastic momentum index reached 50 points touching the mid-line, which indicates growing momentum. The 14-day relative strength index also rose out of oversold conditions and stopped at 64 points, in a strong push towards the higher end of the neutral zone.

Meanwhile, the daily moving average convergence/divergence (MACD) line stopped right on the signal line, falling short of a positive crossing and giving a “buy” signal. A further session of gains will confirm the crossing, signaling a growing uptrend as the MACD line rises towards the zero line.

The share price continues to see support at the RM3.05 mark. A crossing below that mark would see it descend towards December 2018 levels at RM2.86 or lower at RM2.70.

The comments above do not represent a recommendation to buy or sell.

Source: The Star

https://www.thestar.com.my/business/bus ... AL0i8Sy.99
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Re: Genting Malaysia

Postby winston » Fri May 24, 2019 9:19 am

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Genting Malaysia (GENM MK)
1Q19: Surprise Contraction Of Mass Market Segment


GENM’s 1Q19 results are within expectations as an exceptionally high win percentage masked lower-than-expected mass gaming volumes.

EBITDA fell only 3% yoy despite a 10ppt hike in gaming tax.

While valuation is cheap at -0.5 SD below mean EV/EBITDA of 8.8x, there remains a lack of catalysts as the status of the outdoor theme park opening remains in limbo.

Maintain HOLD. Target: RM3.40. Entry: RM3.13.

Source: UOBKH

https://research.uobkayhian.com/content ... 47d4817478
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Re: Genting Malaysia

Postby winston » Fri May 24, 2019 9:35 am

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Tactical U/G to BUY; TP tweaked up 2% to MYR3.46

While 1Q19 results outperformed our expectations due to higher-than-expected VIP win rate, we opine that there is clarity that GENM’s win normalized EBITDA margins can only improve going forward.

There is also added upside potential should the currently stalled Outdoor Theme Park open and Mashpee Wampanoag investment be written back.

With 11% upside potential, coupled with the two aforementioned positive catalysts, we tactically upgrade GENM to BUY from HOLD.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... ca6723.pdf
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Re: Genting Malaysia

Postby winston » Fri May 24, 2019 10:10 am

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Genting Malaysia reports 25% net profit fall

by Tan Xue Ying

KUALA LUMPUR (May 23): Genting Malaysia Bhd (GenM) reported a 25.11% lower net profit for its first quarter ended March 31, 2019 (1QFY19) at RM268.29 million or 4.75 sen per share compared with RM358.24 million or 6.33 sen per share in the corresponding quarter a year ago.

This was despite quarterly revenue growth of 14% to RM2.74 billion compared with RM2.4 billion in 1QFY18, supported mainly by higher contribution from its leisure and hospitality business in Malaysia.

Overall gaming business volume declined due to the reduction in incentives offered to players as part of its cost rationalisation initiatives.

GenM said in its exchange filing today that the group incurred higher pre-opening expenses due to the provision for termination related costs of RM198.3 million at Resorts World Genting; as well as the lower interest income due to impairment of the group’s investment in the group’s investment in promissory notes issued by the Mashpee Wampanoag Tribe in 2018.

These were mitigated by a recognition of gain of RM123.8 million from the disposal of a UK subsidiary as well as higher adjusted earnings before interests, taxes, depreciation and amortisation.

GenM said the group will continue to review its capital expenditure requirements and rationalise its operating cost structure to mitigate the impact of the hike in casino duties against an increasingly challenging operating environment.

“Additionally, the group will focus on leveraging the new assets to grow key business segments. To this end, the group will place emphasis on intensifying database marketing efforts to optimise yield management, as well as improving service delivery and operational efficiencies at Resorts World Genting to enhance overall guest experience.

“In the UK, the group remains committed to streamlining its operations and improving overall operational efficiency to strengthen its position in the country,” said GenM, adding that operations at Resorts World New York City is expected to deliver steady growth despite a crowded market.

At market close today, GenM shares were six sen or 1.95% higher at RM3.13, valuing the group at RM18.59 billion.

Source: The Edge

https://www.theedgemarkets.com/article/ ... rofit-fall
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Re: Genting Malaysia

Postby winston » Fri May 24, 2019 11:29 am

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Genting Malaysia 1Q profit down 25pct

Japanese brokerage Nomura said in a Friday note that guidance from management was that:
1. Malaysia VIP volumes have declined in double digits year-on-year due to lower incentives offered
2. Mass revenues declined 6 percent year-on-year (which implies investor fears of ‘programme’ players going elsewhere like Cambodia/Singapore, due to lower promotional spending is coming true).”


Source: GGR Asia

https://www.ggrasia.com/genting-malaysi ... own-25pct/
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Re: Genting Malaysia

Postby winston » Mon May 27, 2019 9:07 am

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Trading Buy: GENM-4715
(Last price: RM3.09, Potential upside +14.9%)

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

Trading Catalyst

GENM’s share price tumbled 11.7% or RM0.41 with RM2.4bn market cap wipe-off over the past three months, amid concerns of long term earnings jeopardy following a series of negative news flow i.e.
(i) the new casino taxes
(ii) legal proceedings (the earliest hearing by end 2019) against Disney and Fox (GENM may face counter claim of USD46m from Disney) and
(iii) RM1.8bn impairment related to the Mashpee’s notes.

However, we believe these risks have been largely priced in, given the commendable 1Q19 results, where consensus have turned more optimistic and undemanding valuations at 12x FY20 P/E (29% below 10Y average 17x) as well as 0.98x P/B (25% below 10Y average of 1.3x).

Technically, GENM is poised for a downtrend line breakout (near RM3.18) to spur prices towards RM3.25-3.55 levels in the mid to long term

Technical View
Resistance: RM3.25 / RM3.36 / RM3.55
Support: RM3.00 / RM2.95
Cut loss: RM2.90

Key Financial Stats
Trading at 12x FY20E P/E (29% below 10Y of 17x)

Source: HLIB
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Re: Genting Malaysia

Postby winston » Mon May 27, 2019 9:20 am

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Worst is likely behind

Tactical U/G to BUY; TP tweaked up 2% to MYR3.46

While 1Q19 results outperformed our expectations due to higher-than-expected VIP win rate, we opine that there is clarity that GENM’s win normalized EBITDA margins can only improve going forward.

There is also added upside potential should the currently stalled Outdoor Theme Park open and Mashpee Wampanoag investment be written back.

With 11% upside potential, coupled with the two afore mentioned positive catalysts, we tactically upgrade GENM to BUY from HOLD.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... ca6723.pdf
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Re: Genting Malaysia

Postby winston » Mon May 27, 2019 9:51 am

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1QFY19: Unscathed from higher casino tax

At 23.8% of our FY19F, 1QFY19 core net profit was 27% above market but in line with our estimate on high hold percentage in mid-to-premium market.

Genting Malaysia indicated its cost-cutting initiatives should materialise starting from 2Q19.

The stock remains a Hold due to its weak earnings outlook.

The NOTP remains closed and if the delay is further prolonged, we believe GM may need to
make a provision for the NOTP. GM has so far invested US$800m in the NOTP.


Source: CIMB

https://brokingrfs.cimb.com/wt2WfauyDCw ... LsYTw2.pdf
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Re: Genting Malaysia

Postby winston » Fri Jun 07, 2019 8:00 pm

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Genting Malaysia

The sharp decline in Genting Malaysia’s (Genting) share price in the last 12-month period was mainly caused by the gaming tax hike during Budget 2019.

The stalled opening of its outdoor theme park and the write-off of its RM1.8 billion investment in Mashpee’s note were also contributing factors to the stock’s decline.

However, the stock has started to recover and is one of the best performers on KLCI since the start of 2019.

That being said, Genting still has a significant gap to close, having fallen by 34 percent in the last 12 months.

BUY, TP RM3.90; Current share price $3.16

Source: Aspire
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