Genting Malaysia

Re: Genting Malaysia

Postby winston » Mon Jan 02, 2017 6:38 am

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CHOO SWEE KEE
TA Investment Management Bhd Stock pick: Genting Malaysia Bhd

GenM’s assets as being on the matured side, with a jaded theme park and rather old hotel rooms. TA Investment, however, opines that GenM deserves a relook in 2017 after being out of favour with investors, as the GITP should provide it with a major rerating catalyst.

The outlook should get more interesting as the new attractions come onstream, starting with the new cable car system and the Genting Premium Outlet by the first quarter of 2017.

TA Investment’s positivity on the stock is premised on several catalysts. Firstly, the GITP will add gaming capacity, which, in turn, will translate into higher core gaming revenue.

The new non-gaming attractions will also attract more patrons to Genting Highlands, which, in turn, will increase the average spend per person.

Additionally, GenM is also catching the attention of Chinese tourists, as they seek to avoid visitations to Macau in view of the anti-corruption clampdown. Visitors from China rose 49% year-on-year (y-o-y) in the first nine months of 2016.

The Government has also made it easier for Chinese tourists to visit Malaysia by issuing e-visas within 24 hours for stays of up to 30 days.

Lastly, the weak ringgit should also help with visitor numbers, as it is affordable to the average tourist. This is evidenced by the rise in foreign arrivals by 7% y-o-y in the first nine months of 2016.

GenM aims to improve the number of visitors from 19 million in 2015 to 30 million by 2020 and this is possible with the GITP.


Source: The Star
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Re: Genting Malaysia

Postby winston » Mon Jan 02, 2017 6:41 am

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CHUE KWOK-YAN
Head of research, Affin Hwang CapitalStock pick: Genting Malaysia Bhd

THERE is a structural growth story in Genting Malaysia Bhd (GenM), thanks in particular to its Genting Integrated Tourism Plan (GITP).

GenM is one of the few companies in the country with expanding capacity, which basically will be generating growth in 2017-2018.

This translates into a strong upside potential for GenM shares, .

The house’s target price for GenM is RM5.60, which represents an upside of about 20% from its closing price at end-2016.

The counter is expected to offer dividend yields of around 2% for the next two years.

The first phase of the GITP is scheduled for opening throughout 2017, with the main attraction – the 20th Century Fox theme park – slated for operation by the end of 2017.

Once the GITP is completed, it will reinvent Genting Highlands as a competitive integrated resort regionally, which will not only help retain local visitors but also attract regional visitors.

The house expectation is that GenM’s foreign ventures, namely, in the United Kingdom and the United States, are also turning around, as the company’s management has taken steps to address the recent volatilities in its operations in these countries.

The UK operation has shifted focus from high-roller VIPs to premium-mass players who don’t require credit facilities, while the US operation has also acquired the rights to install 1,000 more slot machines on better commercial terms.

Source: The Star

http://www.thestar.com.my/business/busi ... gers-pick/
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Re: Genting Malaysia

Postby winston » Mon May 22, 2017 8:24 am

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Genting risks RM1bil write-off

BY TEE LIN SAY

PETALING JAYA: Genting Malaysia Bhd (GenM) may have to write off an investment of US$274mil (RM1.18bil) should the US Department of Interior (DOI) effectively decide that construction of the First Light Resort & Casino (FLRC) in Massachusetts is not able to proceed.

A definite decision on this issue will be made by June 19, 2017.

The construction of the FLRC has ceased for a year due to reservation land issues.

GenM’s venture in Massachusetts started in April 2016. GenM announced then that it would manage the FLRC, a native American-destination resort casino in Massachusetts to be built by the Mashpee Wampanoag tribe.

GenM’s appointment as manager was expected to be for seven years starting from the opening of the 900-room resort casino in Taunton, in the state of Massachusetts.

The GenM group does not have any equity interest in the project, which is sovereign.

It has, however, invested US$274mil in interest bearing promissory notes issued by the Mashpee Wampanoag Tribal Gaming Authority for the initial development phase of the project.

GenM had said that the investment in notes allows the group to enhance the returns expected from its involvement in the project.

“GenM invested US$274mil, equivalent to 20 sen per share, in MW promissory notes that carry interest rates of 12% and 18% per annum,” said Maybank Investment analyst Yin Shao Yang in his report recently.

“If the new record-of-decisions (ROD) is unfavourable, we gather that GenM may write off the investment and forego net interest income of RM105mil. If the new ROD is favourable, we estimate that GenM will also earn management fees of some RM60mil per annum for seven years from 2019 and lift our target price by 14 sen a share,” said Yin.

Thus, he said, that if the outcome is unfavourable, his sum of parts (SOP) based target price may be trimmed by 20 sen per share. If the outcome is favourable, his target may instead get a 14 sen lift.

GenM closed 1 sen lower to RM5.80 last Friday. It is up some 28.35% on a year to date basis.

For now, Yin’s financial year (FY) ended Dec 31, 2017 to FY19 numbers are little changed and he has a hold call, with a 2% upward tweak to his SOP target price of RM5.40.

The group’s foray into the gaming industry in Massachusetts is expected to complement and further establish its growing presence in the US, where it already has operations and developments in the states of New York and Florida.

The group also has a casino in Las Vegas but it is under Genting Bhd, the parent company.

Source: The Star

http://www.thestar.com.my/business/busi ... AJDvv8p.99
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Re: Genting Malaysia

Postby winston » Wed Jun 14, 2017 10:40 am

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Genting Malaysia price to inch up in near term, says HLIB Research

KUALA LUMPUR (June 14): Hong Leong IB Research said Genting Malaysia Bhd’s (GenM) share prices slid 13.1% from 52-week high of RM6.38 (May 25) to a low of RM5.54 (June 13) before creeping up to end at RM5.63 yesterday, mainly driven by:
1) A sluggish 1Q17 results;
2) The recent 3.9% m-o-m slump of pound sterling against ringgit as its UK’s leisure & hospitality business accounted about 10-15% of EBITDA;
3) The earlier-than-expected tourism tax (to be imposed as early as Aug 17) and
4) Potential delays in the opening of new amenities of Genting Integrated Tourism Plan (GITP).

In a trading idea note today, the research house said that currently, GenM is trading at 15x FY18 P/E (8.5% below its average 10-year average P/E of 16.4x), supported by a strong 11.2% earnings CAGR for FY16-19.

“We believe such valuations and steeply oversold positions have priced in most of the negatives, providing sufficient margin of safety to cushion further plunge in sharp share.

“Given the formation of Tweezers bottom pattern and upticks in daily slow stochastic and MACD histogram, we expect prices to inch up further in the near term.

“A decisive breakout above the immediate resistance of RM5.74 will likely to lift share prices higher towards RM5.86-6.06 levels. Key supports are near RM5.48-5.54. Cut loss at RM5.43,” it said.

Source: The Edge

http://www.theedgemarkets.com/article/g ... b-research
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Re: Genting Malaysia

Postby winston » Fri Sep 08, 2017 11:44 am

Genting Malaysia (GENM.KL, Buy) – All you need to know; reiterating Buy

Genting Malaysia's (GENM) FY18E profit could be 63% higher vs. FY16A.

New facilities in Resort World Genting in Malaysia Highland should draw 20% more visitors (FY18E: 24mn/yr vs. 5yr avg: 20mn/yr).

The new theme park should lengthen stay and lift spend/visitor by 37% (FY18E: MYR383 vs. 5yr avg:MYR280).

Monopoly dominance, untapped Malay, Chinese tourists and young local Chinese market provide tailwind to our bullish thesis;

Buy at MYR9 TP.

Source: DB

http://pull.db-gmresearch.com/cgi-bin/p ... 89b.pdf%3E
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Re: Genting Malaysia

Postby winston » Wed Oct 11, 2017 9:41 am

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August 25, 2017

Not So Lucky in 2Q17

1H17 core profit declined by 23.1% YoY to RM589.1mn despite higher revenue of 1.5% YoY.

The earnings decline or drop in margins were due to:
1) poor luck factor in 2Q17 which affected Malaysia and UK casino business;
2) significant increase in depreciation and other fixed costs, e.g.: energy and staff cost, as GENM progressively opened up more GITP facilities in 2017;
3) acceleration in depreciation after GENM closed down the in-door theme park to make way for refurbishment. This was partly offset by increased contribution from US operations.


Valuation

Given the change in earnings, we downgrade GENM’s DCF valuation to RM6.53/share (from RM6.54/share previously) based on an unchanged discount rate of rate of 8.8%.

We downgrade the stock to Hold (from Buy) as the stock’s potential return has diminished to 9.5% after a strong rally in share price, which appreciated by 32% YTD.


Source: TA Securities
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Re: Genting Malaysia

Postby winston » Wed Oct 11, 2017 9:43 am

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July 6, 2017

Valuation:

We marginally revise our earnings estimates mainly for bookkeeping purposes.

Maintain HOLD with SOP-based TP of RM5.50.

Although we remain optimistic of its earnings prospects, we believe that its current share price offers limited upside potential at this juncture.

Source: Alliance DBS
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Re: Genting Malaysia

Postby winston » Fri Oct 13, 2017 3:29 pm

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DOI sets new timelines for legal case over tribal land

8 Jul 2017

Dispute is over US casino resort to be managed by Genting Malaysia

PETALING JAYA: The legal wrangle over Genting Malaysia Bhd's proposed resort and casino sited on tribal land in the US is expected to be a prolonged one, as the US Department of Interior (DOI) has set new timelines for document submission and counter arguments with regards land rights.

In a Bursa filing yesterday, Genting said the DOI set a timeline of Aug 31 2017 for the tribe and the plaintiffs to submit materials for further analysis.

It has also set another deadline – Oct 31, 2017 – for the parties involved to reply to the opposing submissions.

As at June 30, 2017, Genting has invested a total of US$347.4 million (about RM1.49 bil) in interest-bearing promissory notes, including accrued interest, the Bursa filing said yesterday.

The group subscribed to the promissory notes issued by the Mashpee Wampanoag tribe to finance the pre-development expenses of the integrated gaming resort in Taunton, Massachusetts.

Genting said in the Bursa filing that it will work with the tribe to review “all options available” for its investment in the promissory notes.

It will also “assess its recoverability and impact” to the Group’s consolidated earnings and net assets for the financial year ending Dec 31, 2017, the filing said.

The recoverability of the promissory notes is dependent on the resolution of this on-going legal tussle. The dispute among the opposing groups, between the natives and a group of Taunton residents – where the resort casino was to be located, arose over how the land should be legally categorised.

This is important as the town’s residents, who are opposing the project, are questioning the tribe’s rights to the land.

Given that the legal wrangle 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, the statement said.

Source: The Star

http://www.thestar.com.my/business/busi ... x4ATsJr.99
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Re: Genting Malaysia

Postby winston » Fri Oct 13, 2017 3:34 pm

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Genting Malaysia’s US casino plans face uncertainty

“If construction of the FLRC is not allowed to proceed, then our target price could be trimmed by up to 20 sen a share.

“If construction of the FLRC is allowed to proceed, then our target price may get a 14-sen-a-share lift,” Maybank IB said.

PETALING JAYA: Genting Malaysia’s proposed First Light Resort and Casino (FLRC) project located on native American land may face more obstacles despite the native American tribe withdrawing a request for a review of the land.

Maybank Investment Bank Research (Maybank IB) said the Mashpee Wampanoag (MW) tribe unexpectedly withdrew a request for a category one review of the land.

The research house believed that the MW tribe would appeal for a category two review instead.

“We are now uncertain if construction of the FLRC can proceed. Recall that Genting Malaysia invested US$274mil in MW promissory notes.

“If construction of the FLRC is not allowed to proceed, then our target price could be trimmed by up to 20 sen a share.

“If construction of the FLRC is allowed to proceed, then our target price may get a 14-sen-a-share lift,” it said.

The US Department of Interior (DoI) was supposed to issue a new record-of-decisions (RoD) on whether it could hold MW reservation land in trust under category one, it said.

“The tribe did not elaborate on the options, but we gather that it would appeal the July 28, 2016 ruling by federal district court judge William G. Young that favoured a group of Taunton residents who challenged the initial RoD to hold MW reservation land in trust under category two of the Indian reorganisation Act – tribe living continuously on an existing reservation,” the research house pointed out.

Maybank IB said it understood that, save for a Congressional hearing, category one and category two are the only ways for the DoI to hold reservation land in trust for a native American tribe.

It said given that the MW tribe withdrew its request for a category one review and the Taunton residents had challenged the category two review, “we gather that the MW tribe will have to wage long-drawn legal battles to determine if construction of the FLRC can proceed.”

Genting Malaysia closed lower by one sen to RM5.58, with some 4.15 million shares changing hands yesterday.

Several dealers said the project had likely not been priced into investors’ forecasts because of it was currently under early stages of planning.

Source: The Star

http://www.thestar.com.my/business/busi ... S3iVxs0.99
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Re: Genting Malaysia

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

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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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