Genting Malaysia

Re: Genting Malaysia

Postby winston » Wed Sep 18, 2019 9:16 am

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Genting Malaysia (GENM MK)
Not “Sporting” Enough


Empire-owned Resort World Catskill recently offered on-site betting for New York’s sports betting market and hopes that the government would further liberalise to allow online sports betting.

However, we gauge that the incremental revenue from New York sports betting would still be insufficient to stem Empire’s substantial losses.

GENM’s hefty investment in Empire, which may need a long rehabilitation period, will cap GENM’s price recovery.

Maintain HOLD. Target price: RM3.01. Entry price: RM2.80.

Source: UOBKH

https://research.uobkayhian.com/content ... 8909bcea5a
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Re: Genting Malaysia

Postby winston » Wed Sep 25, 2019 7:57 am

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Genting Malaysia may list US operations, says Affin Hwang

KUALA LUMPUR: Affin Hwang Capital research believes there is a possibility of Genting Malaysia Bhd listing its US operations within the next five to ten years, despite a few "milestones" the gaming company needs to first achieve.

However, any potential listing of the US operations is unlikely to happen in the near term as the Malaysian operations is still recovering from the gaming tax hike.

"We believe that a listing is feasible in the mid to long term, as the monetisation of these assets will not only help to reduce negative perception on the company with regards to its RPT, but also reward shareholders with a special dividend payout," it said.

Investors would be looking forward to a turnaround of Resorts World Catskills as soon as possible with the total investment amount likely to to rise due to an equity injection to refinance some of the property's debt.

"We believe that monetising RWC can help reduce the negative perception of GENM, as the acquisition of the loss-making casino is from a related party.

"We are projecting RWC to EBITDA breakeven by 2024, supported by revenue CAGR of 7.3%," said Affin Hwang.

The research house also said there is a possibility that Genting Malaysia could include its Miami assets and RW Bimini in the future listing, with the assets worth US$1.5bil to US$1.9bil in 2025.

Genting Malaysia could also play a role in GENTING BHD-owned Resort World Las Vegas, most likely as the casino operator, it said.

Affin Hwang did not include the Mashpee investment given the uncertainties over the lands rights issue.

The research house maintained its hold call on Genting Malaysia and target price of RM3.40.

Source: The Star

https://www.thestar.com.my/business/bus ... pmld2FQ.99
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Re: Genting Malaysia

Postby winston » Sat Oct 12, 2019 10:42 am

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Minority shareholder sues Genting Malaysia, Empire Resorts over Resorts World Catskills privatisation plans

Genting Malaysia to form part of new merged entity taking full ownership of New York’s Empire

A minority shareholder of Empire Resorts – the parent company of embattled New York casino Resorts World Catskills – is suing the company over privatization plans involving Genting Malaysia and the family trust of Genting boss Lim Kok Thay.

According to local media outlet Times Herald-Record, David Mullen launched the suit earlier this week against Empire Resorts, its Chairman Emanuel Pearlman, board members Keith Horn, Gerard Ewe Keng Lim, Edmund Marinucci and Nancy Palumbo, Genting Malaysia and Lim’s Kien Huat Realty III.

The suit claims Empire and its associates are steering the company towards privatization against the interests of other shareholders.

As previously reported by Inside Asian Gaming, Genting Malaysia has entered into a binding term sheet with Kien Huat Realty III Ltd – which already holds an 86% stake in Empire Resorts – for the company’s wholly-owned subsidiary Genting (USA) Ltd to acquire 13.2 million shares in Empire, equivalent to a 35% stake.

In turn, Kien Huat will acquire all remaining Empire shares and form a new joint venture entity to be 51% owned by Kien Huat and 49% by Genting (USA) Ltd.

Genting Malaysia says it wants to better position the Resorts World brand in the region through cross-marketing with Resorts World Casino New York City, attract additional customers from other states via those marketing efforts, achieve significant upside through revenue and cost synergies associated with providing arm’s length operating services to Empire, and leverage Genting Malaysia’s experience in the leisure and hospitality industry to enhance Empire’s ramp-up.

A Special Committee of the board of directors of Empire Resorts has already recommended that shareholders approve the merger, with a vote expected to take place before the end of the year.

However, Mullen’s suit alleges Empire did not provide enough information for shareholders to properly assess the offer by Genting Malaysia and Kien Huat Realty III Ltd, that the deal was endorsed to financially benefit Empire board members and that any potential third-parties had been scared off making offers of their own.

It also questions how Genting’s offer price of US$9.74 per outstanding share was arrived at, suggesting the Empire shares may have been undervalued.

Neither Empire not Genting Malaysia has offered any comment on the suit.

Source: Inside Asian Gaming

https://www.asgam.com/index.php/2019/10 ... ion-plans/
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Re: Genting Malaysia

Postby winston » Wed Oct 16, 2019 9:24 am

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TP Revision

Genting Malaysia (GENM MK)
Share Price: MYR3.03
Target Price: MYR3.27
Recommendation: Hold

More +ve on Empire Resorts but not overly excited

We tweak our GENM FY20/FY21 EPS estimates by +7%/+4% as its soon-to-be 49%-owned Empire Resorts (NYNY US, Not Rated) provided better than expected forecasts.

That said, we cut our DPS estimates and this tweaks our SOP-based TP up to MY3.27 from MYR3.24 (Fig 7).

We still expect Empire’s shareholders’ equity to fall to nil without further equity injection and expect Empire to call on GENM for equity injections.

Even under our ‘blue sky’ scenario, Empire’s outlook will not improve greatly.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 2a609b.pdf
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Re: Genting Malaysia

Postby winston » Fri Oct 18, 2019 8:22 am

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Genting Malaysia's tax overhang lifted, sentiment to recover: RHB Research

KUALA LUMPUR: Sentiment on Genting Malaysia Bhd stock should recover as the gaming tax hike overhang has been lifted, said RHB Research.

While it did not foresee any such hike in the 2020 Budget in the first place, RHB Research said the street’s concerns on the matter had been present since the unexpected steep gaming tax hike in the previous budget.

The firm noted that Genting Malaysia management expects Empire Resorts to be EBITDA-positive by financial year 2020, ahead of street and its estimates.

“While the acquisition of Empire Resorts has raised some environmental, social and governance concerns, investors should look beyond this related-party transaction, which is ultimately a non-core joint venture asset.

“Instead, the focus should be on Genting Malaysia’s core business in Resorts World Group, which contributes 80 per cent of group EBITDA.”

RHB Research said Resorts World had repeatedly showed its capability in cushioning the gaming tax hike impact and beating street estimates over the past two quarters.

Its strategy to focus on the premium mass market over high rollers will continue to mitigate the tax hike impact.

“Visit Malaysia 2020 and the opening of its outdoor theme park (slated to open by the third quarter of 2020, if not earlier) should be earnings growth drivers ahead,” the firm added.

RHB Research reiterated its “buy” call on Genting Malaysia with a target price of RM3.90, which represents a 27 per cent upside.

Source: NST

https://www.nst.com.my/business/2019/10 ... b-research
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Re: Genting Malaysia

Postby winston » Mon Oct 21, 2019 9:06 am

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Genting Malaysia (GENM MK)

Share Price: MYR3.05
Target Price: MYR3.27
Recommendation: Hold

First look at Outdoor Theme Park (GENM MK, CP MYR3.05, HOLD, TP MYR3.27, Gaming)

It has been nearly three months since GENM and Fox-Disney reached a settlement over GENM's Outdoor Theme Park (OTP).

GENM hosted a site visit for the investment community to OTP last Friday.

While OTP may open two quarters earlier than we expected, it will incur more capex (which we did not expect) and its ticket pricing has not been set yet.

Pending more details, we maintain our earnings estimates, HOLD call and MYR3.27 SOP-based TP.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 510094.pdf
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Re: Genting Malaysia

Postby winston » Mon Oct 21, 2019 4:29 pm

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Genting Malaysia may need more than a new theme park: Hong Leong

KUALA LUMPUR (Oct 21): Genting Malaysia is on track to launch its outdoor theme park in 3Q next year, which Hong Leong Investment Bank views favorably, raising its 2021 earnings forecast by 6.2%.

But Hong Leong maintains hold on the Malaysian casino operator with an unchanged target price of RM3.38, citing uncertainties of the turnaround plans for the loss-making U.S. entertainment group Empire Resources which Genting Malaysia had acquired, which will weigh on its earnings beginning next year.

Source: The Edge

https://www.theedgemarkets.com/article/ ... hong-leong
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Re: Genting Malaysia

Postby winston » Mon Oct 21, 2019 4:29 pm

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Genting Malaysia may need more than a new theme park: Hong Leong

KUALA LUMPUR (Oct 21): Genting Malaysia is on track to launch its outdoor theme park in 3Q next year, which Hong Leong Investment Bank views favorably, raising its 2021 earnings forecast by 6.2%.

But Hong Leong maintains hold on the Malaysian casino operator with an unchanged target price of RM3.38, citing uncertainties of the turnaround plans for the loss-making U.S. entertainment group Empire Resources which Genting Malaysia had acquired, which will weigh on its earnings beginning next year.

Source: The Edge

https://www.theedgemarkets.com/article/ ... hong-leong
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Re: Genting Malaysia

Postby winston » Mon Oct 21, 2019 8:57 pm

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Genting theme park cost to go above US$700mln: analyst

Genting Malaysia Bhd’s heralded outdoor theme park for its Genting Highlands casino resort (pictured) near Kuala Lumpur, Malaysia, will “incur more“ capital expenditure before it can be completed, “which we did not expect,” said Maybank Investment Bank Bhd in a Monday memo.

The note to investors followed a site visit to the facility at the gaming complex – Resorts World Genting – held for analysts on Friday.

“Genting Malaysia expects to incur more capex to complete the outdoor theme park in addition to the capex to date of approximately MYR3 billion [US$717 million] but has not quantified how much yet,” said Samuel Yin Shao Yang, of the bank’s unit Maybank IB Research.

The institution said it was likely the outdoor theme park – described as 26 acres (10.5-hectares) in area – would have a soft opening in the third quarter of 2020, with 20 rides at that stage – four of them rollercoaster-type attractions – using “Fox intellectual property”.

The latter was a reference to the Fox entertainment brand. Assets of that brand were recently subject of a takeover move by Walt Disney Co, that was clinched in March.

When construction of Resorts World Genting’s outdoor theme park is completed it will have 25 rides, “of which two will run underground,” suggested Maybank.

“For the remaining five rides, Genting Malaysia may employ intellectual properties from other studios but has not decided on which ones yet. This is why the outdoor theme park cannot reassume its previous name, 20th Century Fox World,” wrote Mr Yin.

The analyst said that work on the theme park structures “must be completed by first quarter 2020 to allow for several months of rides testing”. “Fox Disney” would need to provide “final certification,” before anything could open, noted the analyst.

‘Dynamic pricing’

In July Genting Malaysia said it had reached a settlement “fully resolving” a US$1-billion lawsuit versus several entities of the Fox entertainment brand and the Walt Disney Co.

Mr Yin gave guidance in his Monday memo that Genting Malaysia management expected the theme park to have circa 1,100 employees, 40 percent of whom had already been hired, with the remainder due to be taken on “three to four months” before the soft opening.

“Curiously, Genting Malaysia now does not provide guidance on average ticket prices (approximately MYR200 previously, Maybank Kim Eng forecast: MYR150),” wrote Mr Yin.

The casino firm had given guidance it would use “dynamic pricing” for the facility – i.e., higher prices during peak periods and lower ones at other times – and that there would be “no distinction” in ticket pricing between Malaysians and non-Malaysian patrons.

The outdoor theme park would have seven restaurants – three of them “outsourced” and 11 food kiosks, said Maybank. “Initially, the outdoor them park will run for 10 hours a day. That said, Genting Malaysia stated that the outdoor theme park could run for longer during weekends and anniversaries going forward.”

In other developments, Bloomberg reported on Sunday – citing public information from a sales agent – that a so-called “super yacht” purchased by Genting Malaysia six months ago for US$126 million, was being listed to sale again with an asking price of US$200 million; nearly 60 percent more.

The 300-foot (91-metre) vessel was once owned by financier Low Taek Jho, who was implicated in a major financial scandal connected to Malaysian sovereign wealth fund 1MBD. The yacht was formerly known as ‘Equanimity’ and is now named ‘Tranquility’.

Source: GGR Asia

https://www.ggrasia.com/genting-theme-p ... n-analyst/
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Re: Genting Malaysia

Postby winston » Tue Nov 05, 2019 4:46 pm

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Genting Malaysia buys stake in U.S.-listed Empire Resorts for about $129 million

(Reuters) - Casino and resorts operator Genting Malaysia (GENM.KL) said on Tuesday its U.S. unit bought about 13.2 million shares in Empire Resorts Inc (NYNY.O) from its largest shareholder, Kien Huat Realty III Ltd, for about $128.6 million.

Genting said the Empire shares were bought at $9.74 a share, the same as what it had offered to pay for a 46% stake held by Kien Huat in August.

Genting had proposed to acquire and privatize Empire at the time.

Following the acquisition, Genting (USA) now holds a 38.3% stake in Empire.

Source: Reuters

https://www.reuters.com/article/us-empi ... SKBN1XF0KR
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