Genting Malaysia

Re: Genting Malaysia

Postby winston » Fri Oct 13, 2017 3:45 pm

vested

GENTING MALAYSIA BERHAD ("GENM" or "the Group")

- Participation as the Manager to the operation of an integrated gaming facility and resort in Taunton, Massachusetts

The Board of Directors of GENM refers to the announcement dated 1 April 2016, whereby the Group has subscribed to the promissory notes issued by the Mashpee Wampanoag Tribe (“Tribe”) to finance the pre-development expenses of an integrated gaming resort in Taunton, Massachusetts, United States of America (“U.S.”).

In September 2015, the U.S. Federal Government (i.e. U.S. Department of Interior (“DOI”)) issued a Record of Decision (“ROD”) (i.e. Category 2 ROD) to take the Tribe’s aboriginal lands into trust, in Taunton and Mashpee, Massachusetts for the Tribe under the Indian Reorganization Act of 1934 (“IRA”). This enabled the Tribe to pursue the development of the integrated gaming resort on its initial trust land in Taunton (“Project”).

In February 2016, legal action was brought by a group of local Taunton residents (“Plaintiffs”) against the DOI for issuing a ROD to hold the Tribe’s reservation lands in trust under Category 2 of Section 479 of the IRA.

In July 2016, a judge of the U.S. District Court in Massachusetts ruled against the DOI, but allowed the Tribe’s lands to remain in trust while the DOI and the Tribe decide how they wanted to move forward.

The Tribe chose to appeal the case to the U.S. Court of Appeals for the First Circuit, where it remains pending today. Given that the lawsuit remains pending and further rulings are expected to be made, construction of the integrated gaming resort has been put on hold pending further court developments and/or actions by the DOI or other relevant governmental authorities that will enable the Tribe to ultimately proceed with the integrated gaming resort project.

In December 2016, at the request of the Tribe, the DOI initiated a review process to determine whether it would continue to hold the Tribe’s lands in trust under a different legal category (i.e., Category 1 of Section 479 of the IRA), join the Tribe in its appeal of the U.S. District Court’s adverse ruling on the Category 2 ROD or take the Tribe’s lands out of trust.

The U.S. Department of Justice, on behalf of the DOI, decided on 27 April 2017 not to join the Tribe in appealing the U.S. District Court’s decision on the Category 2 ROD, but the DOI is continuing to evaluate its ability to keep the Tribe’s lands in trust under a different legal category.

On 27 June 2017, the Tribe announced that it requested a suspension of the DOI’s review of its Category 1 submissions. The intent of the request was to preserve the Tribe’s rights to seek further review and consultation at a later date and investigate all options available to secure the Tribe’s land base.

On 30 June 2017, the DOI announced that it declined the request made by the Tribe to suspend its Category 1 review process. Instead, the DOI decided to extend and expand its review process by requesting further materials on whether the Tribe’s history supports its rights to trust land.

The DOI requested parties (i.e. the Tribe and the Plaintiffs) to specifically focus on whether the early exercise of state jurisdiction over the Tribe by the Commonwealth of Massachusetts provides a legal basis for keeping the Tribe’s land in trust.

The DOI set a timeline of 31 August 2017 for the Tribe and the Plaintiffs to submit materials to facilitate the additional analysis and until 30 October 2017 to reply to the opposing submissions. Meanwhile, the Tribe’s lands remain in trust unless ordered by a court to take it out of trust.

As disclosed in the Group’s 2016 Annual Report, the recoverability of the promissory notes is dependent on the resolution of this legal case.

The total amount invested in the interest bearing promissory notes (including accrued interest) as at 30 June 2017 amounts to US$347.4 million (or the equivalent of approximately RM1.49 billion).

The Group will work with the Tribe to review all options available for its investment in the promissory notes, and assess its recoverability and impact to the Group’s consolidated earnings and net assets for the financial year ending 31 December 2017.

The Group is supportive of the Tribe’s endeavour to protect its land base and their associated development rights.

Source: Bursa Malaysia

http://www.bursamalaysia.com/market/lis ... ts/5481049
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Re: Genting Malaysia

Postby winston » Thu Oct 26, 2017 9:19 am

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Highly Unusual Poor Run

Maintain HOLD despite GENM falling to a multi-month low over concerns of potential impairment of its RM1.5b investment in the US Mashpee tribal casino project, and in Malaysia, continuing poor luck and further delay in the opening of the 20th Century Fox theme park.

Nevertheless, downside is limited as valuation has fallen back to a more familiar range.

Target price: RM5.15. Entry price: RM4.80.

Source: UOBKH

https://research.uobkayhian.com/content ... 84432bb512
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Re: Genting Malaysia

Postby winston » Mon Oct 30, 2017 12:40 pm

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Genting Malaysia

Our target price for Genting Malaysia is based on sum-of-the-parts (SOTP) valuation comprising 20x 2017 P/E for domestic, UK and US gaming operations.

While the pegged target is higher than the historical trend, we believe that it is justifiable given the growth is sustainable for next three years.

We have pegged 1x historical PB to investment properties.

Downside risks include the possibility of further controversial M&A activity, intensifying
regional competition and regulatory tightening in operating and potential markets and lower-than-expected return for new investments in the US.

Given the lack of clarity in operational data, profit forecast accuracy is thus at risk.

Source: DB
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Re: Genting Malaysia

Postby winston » Tue Nov 07, 2017 9:11 am

Keeping our cards close to our chest for now

Maintain HOLD with a lower TP

GENM reports 3Q17 results on 23 Nov. The results may disappoint due to higher-than-expected Resorts World Genting (RWG) staff cost.

GentingUK’s (GENUK) London VIP volumes may have also been under pressure from stricter regulations.

That said, Resorts World New York (RWNY) will undergo an expansion that will boost its long term earnings.

We lower FY17-19 earnings forecasts by 4-11%, TP by 7% to MYR5.55.

Downside for TP is another 4% to MYR5.35 if its Mashpee Wampanoag investment sours.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/7 ... 542828.pdf?
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Re: Genting Malaysia

Postby winston » Tue Nov 07, 2017 9:11 am

Keeping our cards close to our chest for now

Maintain HOLD with a lower TP

GENM reports 3Q17 results on 23 Nov. The results may disappoint due to higher-than-expected Resorts World Genting (RWG) staff cost.

GentingUK’s (GENUK) London VIP volumes may have also been under pressure from stricter regulations.

That said, Resorts World New York (RWNY) will undergo an expansion that will boost its long term earnings.

We lower FY17-19 earnings forecasts by 4-11%, TP by 7% to MYR5.55.

Downside for TP is another 4% to MYR5.35 if its Mashpee Wampanoag investment sours.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/7 ... 542828.pdf?
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Re: Genting Malaysia

Postby winston » Thu Nov 09, 2017 10:24 am

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Genting Malaysia acquires remaining 49% in UK restaurant operator

by Samantha Ho

KUALA LUMPUR (Nov 8): Genting Malaysia Bhd has acquired the remaining 49% stake in Waters Solihull Ltd that it did not previously own, making the UK-incoprorated restaurant operator an indirect wholly-owned subsidiary of the group.

Genting Solihull Ltd, indirect wholly-owned subsidiary of Genting Malaysia, had acquired 25 ‘A’ ordinary shares from James Driscoll Associates Ltd and 24 ‘A’ ordinary shares from Andrew Mark Waters, the group said in a filing with Bursa Malaysia today.

“The considerations for the acquisitions are nil pursuant to the shareholders’ agreement previously agreed upon between the shareholders of Waters Solihull,” Genting Malaysia said.

To recap, Genting had in July 2015 incorporated the 51%-owned Waters Solihull which had an issued and paid-up share capital of 100 pounds sterling.

The acquisitions do not have any material impact on the net assets and earnings per share of the group for the financial year ending Dec 31, 2017, Genting Malaysia said.

Shares in Genting Malaysia were down 12 sen or 2.26% to RM5.18 today, giving the group a market capitalisation of RM30.76 billion.

Source: The Edge

http://www.theedgemarkets.com/article/g ... t-operator
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Re: Genting Malaysia

Postby winston » Fri Nov 24, 2017 11:32 am

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Genting Malaysia 3Q net profit down 65%

by Supriya Surendran

Genting Malaysia Bhd's (GENM) net profit dropped 65.2% to RM193.37 million in the third quarter ended Sept 30, 2017 (3QFY17) from RM555.73 million a year ago, mainly due to lower adjusted earnings.

Earnings per share also fell to 3.41 sen from 9.82 sen.

Source: The Edge

http://www.theedgemarkets.com/article/g ... it-down-65
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Re: Genting Malaysia

Postby winston » Wed Dec 27, 2017 7:14 pm

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GENTING MALAYSIA BHD

Rating: Neutral (Maintained)
Target price: RM5.05

GENTING Malaysia Bhd’s (GenM) indoor theme park and the 20th Century Fox World outdoor theme park are expected to be opened in the first and second half of 2018.

As at Sept 30, 2017, GenM spent RM7.8bil on Genting Integrated Tourism Plan, which is 75% of the cost.

The house said although volume was smaller for the mass market, margins were higher and more stable. For the financial year 2018 (FY18) forecast, PublicInvest forecast the UK operations to contribute about 10% of the group’s earnings before interest, tax, depreciation and amortisation (with remaining 82% from Malaysia and 8% from the United States and other markets).

In the meantime, as at Sept 30, GenM’s total investment in promissory notes for the financing of the Mashpee Wampanoag Tribe’s development of an integrated resort in the United States amounted to US$368.9mil (RM1.56bil).

“This is mainly due to the low base in FY17, while earnings momentum is expected to pick up only in second half of 2018,” PublicInvest said, keeping a “neutral” rating on the stock with unchanged target price of RM5.05.

Source: Public Investment Bank Research
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Re: Genting Malaysia

Postby winston » Thu Feb 08, 2018 10:34 am

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Genting Malaysia near-term prospects clouded by higher costs

KUALA LUMPUR: CIMB Equities Research sees Genting Malaysia’s near-term outlook clouded by higher costs as it retains its FY17-19F earnings forecasts.

The research house said on Thursday it is expecting the group to chart earnings growth of 24% on-year for FY18F on the back of normalising VIP hold rates as well as gaming volumes for its casinos in Malaysia.

“Nonetheless, we retain our Hold call as we think that Genting Malaysia’s short-term earnings growth from the new Genting Integrated Tourism Plan (GITP) has been priced in its valuations at 9x CY19F EV/EBITDA (in line with Genting Malaysia’s 10-year EV/EBITDA mean). Our RNAV-based target price of RM5.45 remains unchanged,” it said.

CIMB Research recently met up with the group to discuss Genting Malaysia’s near-term earnings prospects, which mainly centered on the timeline for the opening of its multiyear renovation and development of the GITP project as well as key strategies for 2018.

“In our view, we think that the escalating operating and depreciation costs could outpace Genting Malaysia’s revenue growth from its new facilities in the near term, thus putting pressure on margins, at least for 1H18,” it said.

The research house said following lacklustre earnings over the past few quarters (due to a poorer VIP hold rate percentage), it believes that there could be a sequential improvement in the earnings in 4Q17.

This is on the back of the normalisation of VIP win rates, tracking closer to its theoretical rate of c.2.5-3% and seasonally higher business volumes for both the VIP and mass market due to year-end holidays and festivities.

To recap, 3Q17 VIP volumes were up “double-digit” while non-VIP volumes were up “single-digit” quarter-on-quarter.

Genting Malaysiais aiming to re-open part of its indoor theme park (closed since April 2017), which will feature 18 new rides, before the 2018 Chinese New Year festivities (in mid-Feb). It will also be fully operational by end-1H18F.

Nonetheless, the group still thinks that the catalytic crowd puller for its non-gaming assets would be its 20th Century Fox outdoor theme park, which will be ready to open by end-2H18F.

“Going forward, we think that the latter could further boost visitor arrivals and as such, visitations and revenues.

“Over the past few years, Genting Malaysia has focused more on rewarding existing RWG members (which typically carry higher yields) rather than foreign visitors, particularly Chinese tourists.

“This has proven effective as 3Q17 mass market volume grew c.10% yoy (from flat to 1% over the past few quarters). Nonetheless, Genting Malaysia’s has shared that it will begin ramping up its efforts in marketing to Chinese tourists by 2H18, leading up to the opening of its outdoor theme park which should drive more overall foot traffic,” it said.

Source: The Star

https://www.thestar.com.my/business/bus ... 5g3mDXg.99
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Re: Genting Malaysia

Postby winston » Mon Jun 11, 2018 2:00 pm

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Trading Buy: GENM - 4715
(Last price: RM5.01, Potential upside +11.4%)

Company Profile
• GENM is principally involved in the leisure and hospitality business covering theme parks, gaming, hotels, seaside resorts and entertainment in Malaysia, US and UK

Trading Catalyst
• Downside risk is limited amid undemanding 15.2x FY19 P/E (vs 10Y average of 17x) and the oversold positions coupled with the optimism from multiyear fruit yielding (from FY18 onwards) for its GITP investment.
• The high visitation rate will continue to provide the springboard for growth amid the progressive rollouts of new amenities, followed by 20th Century Fox theme park by year end. Meanwhile, the worry on the erosion of margin will be offset by the upside provided by the zerorisation of GST.
• Potential downtrend line breakout with upside targets at RM5.20-5.58.

Technical View
• Resistance: RM5.20 / RM5.38 / RM5.58
• Support: RM4.86 / RM4.72
• Cut loss: RM4.69

Key Financial Stats
• Trading at 15.2x FY19 P/E (10.6% lower than 10Y historical 16.7x).
• HLIB Institution TP is RM5.80, offering another 15.8% upside.

Source: HLIB
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