Genting Malaysia

Re: Genting Malaysia

Postby winston » Fri Mar 20, 2020 8:02 am

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Genting Malaysia pumps RM175mil into US gaming unit Empire Resorts

KUALA LUMPUR: Genting Malaysia Bhd has agreed to inject fresh capital up to RM175mil into struggling US gaming unit Empire Resorts Inc.

The company, in a filing with Bursa Malaysia today said it had on March 18 agreed to subscribe up to US$40mil of series G preferred stocks in Empire.

"The proceeds from the equity injection will be utilised by Empire for the purposes of a refinancing plan and working capital," it said.

Empire is currently working on both short and long-term solutions to refinance its outstanding debt of US$540mil with a syndicate of banks.

"The proceeds also provide Empire additional funds for its working capital, if required in view of the recently announced temporary closure of Resorts World Catskills (RWC) by the authorities due to the COVID-19 pandemic," it said.

For the financial year ended 2019, RWC registered a 48% growth in total gross gaming revenue to US$208.7mil from US$140.6mil previously.

"Strategic efforts that capitalise on synergies with Resorts World Casino New York City have generated positive results for RWC with continuing GGR growth of 31% for the first two months of financial year ending Dec 31, 2020 compared with the same period in 2019," it said.

Source: The Star

https://www.thestar.com.my/business/bus ... re-resorts
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Re: Genting Malaysia

Postby winston » Fri Mar 20, 2020 2:22 pm

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HLIB upgrades GENM, but cuts target price on lower earnings forecasts

by Arjuna Chandran Shankar

KUALA LUMPUR (March 20): Hong Leong Investment Bank (HLIB) has cut its target price (TP) on Genting Malaysia Bhd (GENM) to RM2.31, from RM3.13 previously, on the back of lower earnings forecasts.

In a note to investors this morning, the research house — which has also upgraded its call on the counter to “buy” from “hold” — said it would be cutting its earnings forecasts for the financial year ended Dec 31, 2020 (FY2020) by 35.1% as it expects lower numbers of Resorts World Genting (RWG) visitors and contributions from foreign casinos to reflect the stronger impact of the outbreak.

“Upgrade to ‘buy’ at RM1.91 with a lower TP of RM2.31 (from RM3.13) after updating the forecast changes while imputing a lower EV/Ebitda multiple of 5.5x (-2SD below 10-year mean) towards mid-FY21 Ebitda,” the research house said.

It noted that its sum-of-parts (SOP) derived TP includes a 20% discount to reflect the uncertainty over the duration of the Covid-19 outbreak.

As such, it believes its mid-FY21 valuation is a fairer timeline yardstick to use as GENM’s FY20 numbers on their own would undervalue its longer-term positive outlook with the outdoor theme park launch being a catalyst, while rolling over to FY21 would be neglecting the near-term impact of the outbreak.

HLIB added that despite its conservative estimates and large TP cut, it felt that the year to date (YTD) share price fall of 42% suffered by GenM has somewhat priced in the impact of Covid-19 and offers some buffer to bottom nibble.

“Share price may potentially remain subdued in the near term but the attractive dividend yield of 9.4% and positive longer-term prospects should hopefully serve as downside support to the share price,” the research house opined.

On its outdoor theme park, HLIB viewed that the targeted launch of the facility in the third quarter of this year will serve as a huge draw factor, combined with pent-up demand if Covid-19 is contained by then.

From a cash flow perspective, HLIB believes that GENM should be able to continue declaring a divided of some 18 sen per share, as the decline in operating cash flow will be offset by an approximately RM1 billion decrease in capital expenditure (capex), given that construction of the site is at its tail-end.

The research house is neutral on GENM’s equity injection into Empire Resorts Inc of US$40 million or RM174.8 million, as this amount is rather small relative to its balance sheet position.

“Our pro-forma calculation implies that net gearing would only inch up to 0.2x (from 0.19x as of 4Q19) after the transaction. We are not entirely surprised by this news as Empire had previously disclosed the need for capital injection alongside and/or restructuring of debt (which is currently ongoing),” HLIB said.

As of 9:28am, shares in GENM were trading 4.19% or eight sen higher at RM1.99, valuing it at some RM11.82 billion.

Source: The Edge

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

Postby winston » Mon Mar 30, 2020 10:38 am

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BUY (Upgrade from Fully Valued)
Price Target 12-mth: RM2.40 (22% upside) (Prev RM2.65)

What’s New

The stock has dropped ~40% YTD, with valuation metrics showing near/below 1998 and 2008 crisis levels at this juncture

FY20 is a challenging year for the group, but earnings are likely to rebound post FY20

Conservatively cut FY20/21 earnings by 26/16% for reduced visitations and lower overseas contributions

Upgrade to BUY with lower TP of RM2.40

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fchgekhfj
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Re: Genting Malaysia

Postby winston » Mon Jun 01, 2020 8:59 am

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Genting Malaysia – BUY

GENM is one of the cheapest casino stocks globally and may retain high DPS payout to
deliver a dividend yield of above 6.5%, which would be among the top-yielding Bursa-listed
companies. GENM can theoretically maintain its DPS payout in 2020 using its high cash
backing despite a significant fall in 2020F EBITDA.

We expect Genting Highlands to see a moderate recovery until the COVID-19 pandemic is
contained, given that GENM is highly dependent on tourists from ASEAN countries where
the number of COVID-19 cases are relatively under control and on a declining trend. Share
price has rebounded about 2% from its low.

We also expect pent-up demand from local trippers (who account for 65-70% of Genting
Highland’s visitors) on the government’s economic stimulus package including incentive
vouchers to promote domestic tourism and safer inbound travelling.


Share Price Catalyst

Sustainable high dividend yield of >6.5%, taking into account that GENM’s capex for the
construction of its outdoor theme park is nearing completion.

Gradual resumption of retail and F&B businesses after a temporary closure to comply with
MCO.

Source: UOBKH
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Re: Genting Malaysia

Postby winston » Mon Jul 20, 2020 9:53 am

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Genting Malaysia
ADD, TP RM2.75, RM2.49 close

We forecast GENM to incur a core net loss of RM125m in FY20F due to low visitor arrivals (MCO impact), social distancing SOPs post-MCO, the maiden full-year share of Empire Resorts’ losses
and potential normalisation of VIP hold rates.

We then see FY21F core net profit rebounding to RM1.0bn post Covid-19 and then rising 6.4% in FY22F.

Source: CIMB
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Re: Genting Malaysia

Postby winston » Fri Aug 28, 2020 8:05 am

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2Q 2020 Results

Genting Malaysia Bhd (GENM) declared an interim dividend of six sen per share despite the losses posted in 2QFY20.

It posted a net loss of RM900.42 million for the second quarter ended June 30, 2020 (2QFY20). This is more than double the RM417.96 million net loss it had reported for the preceding quarter.

In contrast, the group had recorded a net profit of RM416.48 million for last year’s second quarter (2QFY19).

GENM saw revenue of RM114.91 million for 2QFY20, down 94.12% compared with RM1.96 billion in 1QFY20, and down 95.58% compared with RM2.6 billion in 2QFY19.

Source: The Edge
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Re: Genting Malaysia

Postby winston » Mon Aug 31, 2020 8:39 am

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Genting Malaysia
Medium-term recovery story still intact


Worse-than-expected 2Q20 core net loss of RM796m was due to Covid-19 closures but 1H20 interim DPS of 6 sen was a positive surprise.

We now expect earnings to slowly recover to pre-Covid-19 levels only by FY22F (previous: full recovery in FY21F) due to social distancing.

Reiterate Add with a 2% higher SOP-based target price of RM2.80.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AA866EC0DE
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Re: Genting Malaysia

Postby winston » Fri Nov 27, 2020 9:17 am

Genting Malaysia (GENM MK)
3Q20: Impressive GGR Recovery Supports Generous Dividends


GENM’s 3Q20 results met expectations.

Revenue declined 46% yoy and EBITDA plunged 55% yoy, reflecting the partial impact of the COVID-19 lockdown at its gaming properties and largely reduced gaming capacity.

A major and highly impressive surprise was Genting Highlands regaining much of its GGR led by VIP volumes.

Investors will now appreciate the earnings recovery potential and the sustainability of
its lush dividends.

Maintain BUY. Target price: RM3.10.

Source: UOBKH

https://research.uobkayhian.com/content ... c4b5dd7436
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Re: Genting Malaysia

Postby winston » Mon Nov 30, 2020 6:12 pm

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Headwinds abound but recovery imminent

3Q20 earnings were a beat on better-than-expected RWG revenue & opex.

We expect earnings to slowly recover to pre-Covid-19 levels over FY21F before rebounding strongly in FY22F, helped by SkyWorlds’s opening.

Reiterate Add with a 9% higher SOP-based target price of RM2.95.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9DBF410133
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Re: Genting Malaysia

Postby winston » Tue Dec 08, 2020 8:47 am

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Genting Malaysia — Paving its road to recovery

Increasing buying interest seen so far, with anticipation of significant improvement in arrivals to its resorts

Chart-wise, it is trading above all key moving averages line which is also a positive sign

Source: The Edge
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