Genting Malaysia

Re: Genting Malaysia

Postby winston » Fri Jun 21, 2019 9:44 am

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Genting Malaysia (GENM MK)
Share Price: MYR3.38
Target Price: MYR3.40
Recommendation: Hold

The taxman cometh again

GENM withdrew its application for judicial review of Ministry Of Finance’s (MOF) decision to amend the terms of its Genting Integrated Tourism Plan (GITP) tax incentives.

This will lead to higher corporate tax rates in the near future.

Reflecting the above, we lower our FY19/FY20 EPS estimates by 9% p.a. but tweak our FY21 EPS estimate upwards by 2%; we also trim our SOTP-based TP to MYR3.40 from MYR3.46.

As upside potential has narrowed, we downgrade GENM to HOLD.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... b3a6fe.pdf
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Re: Genting Malaysia

Postby winston » Mon Jun 24, 2019 6:23 pm

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Genting Malaysia earnings per share to fall 9% following decision to dump Judicial Review into tax incentives: Maybank

Genting Malaysia granted leave for judicial review of MOF amendment to tax incentives

Malaysian investment bank Maybank has estimated that last week’s decision by Genting Malaysia to withdraw its application for a Judicial Review into a Ministry of Finance amendment to the terms of tax incentives will result in a 9% reduction in earnings per share in FY19/FY20.

Genting Malaysia had been granted tax incentives by the MOF in December 2014 for its multi-billion dollar Genting Integrated Tourism Plan (GITP) redevelopment, only for authorities to amend the agreement in December 2017 to significantly prolong the utilization period of those tax allowances.

The casino operator responded by filing an application for Judicial Review of the MOF Decision with the Kuala Lumpur High Court in January of this year, which was granted, only to announce last week that it had withdrawn its application. No reason for the change of heart was given.

In a research note published Monday, Maybank Research noted that Genting Malaysia can now expect higher corporate tax rates in the near future, with Resorts World Genting’s tax rate rising from a previously expected rate of 12% to around 20%.

As a result, earnings per share estimates have been revised down by 9% per annum through 2019 and 2020. However, earnings per share estimates for 2021 have been revised up by 2% as “there will now likely still be GITP tax incentives to be utilized then.”

Maybank estimates Genting Malaysia will see a 2.7% rise in revenue in 2019 to MYR10.19 billion(US$2.46 billion) in 2019, growing further to MYR10.53 in 2020.

But net profit forecasts are heading in the other direction, falling from a realized profit of MYR2.02 billion (US$487.7 million) in 2018 to an estimated MYR1.25 billion (US$301.8 million) in 2019 and MYR1.35 billion in 2020.

Source: Inside Asian Gaming

https://www.asgam.com/index.php/2019/06 ... s-maybank/
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Re: Genting Malaysia

Postby winston » Wed Jun 26, 2019 8:32 am

RHB maintains buy call on Genting Malaysia, TP at RM3.90

21 Jun 2019

KUALA LUMPUR: RHB research is neutral on the news that Genting Malaysia Bhd has withdrawn its application for a review of the terms for tax incentives.

"We are neutral on the news as we have not factored in any potential improvements in effective tax rates to 10-12%, following the filing of judicial review in January.

"We revise our FY19F-FY21F earnings by 3.5-3.6% after factoring in a higher effective tax rate of 18% from 15%," it said.

RHB also noted that there may be a reversal of tax credit of RM201mil, recognised from 4Q18 onwards, in the upcoming quarter, which will be treated as a non-recurring item.

It added that the quantum of qualifying capex on the MYR10.4bn GITP investment remains unchanged and is claimable as long as the business is a going concern.

The research house maintained its buy call and target price of RM3.90 on the counter.

On Jan 23 this year, Genting Malaysia had filed a judicial review to challenge the Finance Ministry's decision to prolong the utilisation period of its tax incentives.

In spearheading cost rationalisation efforts, the group CEO has said he will be taking a 20% cut to his remuneration, which in FY18 amounted to RM93.52mil and would save Genting Malaysia about RM18.7mil.

"The news is in line with our expectations as we have factored in some cost savings initiatives in our model.

"Nevertheless, we expect the impact on EBITDA margin to be less than the 10% hike in gaming tax given the cost cutting initiatives and higher revenue base," said RHB.

Source: The Star

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

Postby winston » Wed Jul 24, 2019 9:20 am

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Outdoor Theme Park to open soon?

Lift TP by 12% to MYR3.80 – U/G to BUY from HOLD

We gather that Resorts World Genting (RWG) could be opening its Outdoor Theme Park (OTP) a lot earlier than we expected.

Our earnings estimates are unchanged but we remove the 10% discount we previously ascribed to our SOP-based valuation on added certainty that the OTP will finally open.

Our revised TP is MYR3.80 (MYR3.40 previously).

We are optimistic that the OTP will drive GENM’s next phase of earnings growth regardless of whether it opens in 1Q21 as we expect or earlier.

Another potential catalyst is the write-back of its Mashpee Wampanoag promissory notes. Recall that GENM wrote off its MYR1.8b (MYR0.32/sh) Mashpee Wampanoag (MW) promissory notes in 3Q18 as the MW tribe failed to be recognised as ‘Indian’ under either Category 1 or Category 2 of the Indian Reorganization Act 1934. This precluded the MW tribe from building their First
Light Resort & Casino (FLRC) and repaying GENM.

On 16 May 2019, the United States House of Representatives passed H.R.312 - The Mashpee Wampanoag Tribe Reservation Reaffirmation Act. If a similar bill is passed in the United States Senate and President Donald Trump does not veto the bills, the MW can build their FLRC and repay GENM. Should this occur, we opine GENM may write back its MW promissory notes and resume recognising USD60m of interest income p.a.


Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... dfc44a.pdf
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Re: Genting Malaysia

Postby winston » Fri Jul 26, 2019 8:08 am

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Genting Malaysia reaches settlement over outdoor theme park development

KUALA LUMPUR (Bernama): Genting Malaysia Bhd has fully resolved its dispute with Fox Entertainment Group Llc, Twentieth Century Fox Film Corporation, Foxnext Llc, Twenty First Century Fox Inc and The Walt Disney Company over the development of an outdoor theme park.

In a filing with Bursa Malaysia today, Genting Malaysia said as part of the settlement terms, all parties had entered into a restated memorandum of agreement granting the company a license to use certain Fox intellectual properties.

Following the settlement, all parties agreed to dismiss all claims and counterclaims between the parties in the pending legal action in the United States District Court for the Central District of California, it said.

"Genting Malaysia is currently updating its development and construction plans to complete the outdoor theme park utilising both Fox and non-Fox intellectual properties.

"The outdoor theme park shall also be renamed,” it added.

Source: The Star

https://www.thestar.com.my/business/bus ... TGC3b3c.99
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Re: Genting Malaysia

Postby winston » Fri Jul 26, 2019 11:53 am

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Tranquility

As hoped, GENM and Twenty-First Century Fox (Fox) have entered into a settlement agreement, ending a an eight-month legal impasse.

GENM now has the license to utilise Fox’s intellectual property (IP) for the eventual opening of its long-delayed outdoor theme park, which would also feature non-Fox IP.

Maintain HOLD but revise up our target price to RM3.90.

Entry price: RM3.60

Missing essential part of details.

The company remains tight-lipped on the details of the outdoor theme park, such as settlement details and the opening timeline.

Meanwhile, we could not confirm speculation that the settlement comes at the cost of GENM paying a higher effective royalty payment to Fox.


Source: UOBKH

https://research.uobkayhian.com/content ... 33e0a3c322
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Re: Genting Malaysia

Postby winston » Fri Jul 26, 2019 2:10 pm

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Reunited and it feels so good
Maintain MYR3.80 TP and BUY call


After a falling out in Nov 2018, GENM and Fox/Disney have reconciled.

Curiously, GENM’s Outdoor Theme Park will also incorporate non-Fox intellectual properties going forward.

Details are lacking at this point in time.

Nonetheless, we view this development positively.

We gather all eyes will be on the 2Q19 results conference call scheduled for 29 Aug 2019 for more details on this development.

Until then, we maintain our earnings estimates, MYR3.80 SOTP-based TP and BUY call.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 4744b7.pdf
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Re: Genting Malaysia

Postby winston » Fri Jul 26, 2019 2:32 pm

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HLIB Research raises target price for Genting Malaysia to RM4.21

KUALA LUMPUR (July 26): Hong Leong IB Research has maintained its “Buy” rating Genting Malaysia Bhd (GenM) at RM3.67 with a higher target price (TP) of RM4.21 (from RM3.53) and said the dispute between Fox-Disney and GenM is fully resolved.

In a note today, the research house said the outdoor theme park (OTP) will proceed with partly Fox and non-Fox IP.

“We believe excitement will return as this will still be the first theme park in Asia with Fox’s IP, and is likely to increase footprint.

“For now we keep our forecast unchanged pending clearer indication on OTP’s opening timeline. This may act as a good catalyst for foreign shareholders to return, as foreign shareholding on GenM is at an alltime low of circa 31%.

“Maintain Buy, with higher TP of RM4.21, as we increase our EV/EBITDA multiple to 9.0x (1SD above 3 years mean). Post upgrading GenM, our TP on Genting Bhd would increase to RM7.05, maintain Hold,” it said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ysia-rm421
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Re: Genting Malaysia

Postby winston » Mon Jul 29, 2019 11:25 am

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Genting Malaysia (GENM MK) : HOLD
Mkt. Cap: US$5,042m I 3m Avg. Daily Val: US$6.3m
Last Traded Price ( 25 Jul 2019): RM3.67
Price Target 12-mth: RM3.35 (9% downside) (Prev RM3.35)

Fox saga – the empire strikes back

Full settlement with Disney on postponed Fox outdoor theme park and dismissal of all legal claims

Possible opening of revamped outdoor theme park in early 2020

Stock rallied 9.2% in three days on speculation of early opening of theme park; positive developments priced in

Maintain HOLD with RM3.35 TP

Prospects remain challenging. Despite the positive development, we believe that GENM’s earnings prospects remain challenging due to;
(1) punitively high casino tax and increased casino licence fees effective in 2019 and
(2) the accelerated US-China trade war which could dampen domestic and regional discretionary consumption growth and limit visitations to Genting Highlands.

The group could also be vulnerable to the potential exit of foreign investors from emerging markets if external risks heighten further. This is due to GENM’s high percentage of foreign shareholdings at 31% as at end 31st March.


Source: DBS

https://researchwise.dbsvresearch.com/R ... =eghcbkiia
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Genting Berhad / Lim Kok Thay

Postby winston » Wed Aug 07, 2019 8:11 am

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Genting Malaysia buys stake in Nasdaq listed Empire Resorts

KUALA LUMPUR: Genting Malaysia Bhd (GENM) is consolidating its gaming business in the US.

The company, in a filing with Bursa Malaysia today, said wholly owned Genting (USA) Ltd has proposed to acquire 13.2 million shares in Empire Resorts Inc from its single largest shareholder Kien Huat Realty III (KH) for US$128.6mil (RM538.8mil).

It is further proposing a joint venture between GENM and KH to gain full control of Empire Resorts.

The 13.2 million shares currently represents approximately 46% of the shares of common stock held by KH and which also represents approximately 35% of the outstanding voting power of Empire on a fully diluted basis after conversion of all preferred stock currently outstanding into common stock.

KH is currently the largest shareholder of Empire, owning approximately 28.91 million shares or 84% of common stock.

Empire is a gaming and entertainment company publicly traded on the Nasdaq Stock Market.

The company owns and operates Resorts World Catskills (RWC), a casino resort situated on a 1,700-acre site in Sullivan County, New York in America. Empire also owns and operates Monticello Casino and Raceway.

Empire has also entered into a sportsbook and digital gaming collaboration agreement with an affiliate of Bet365 Group Limited, a British online gaming company based in the United Kingdom.

"Following the collaboration agreement, Bet365 will participate with Empire in the offering of retail sports betting and online sportsbook, online casino and online poker in New York State, if and when permitted by applicable law," said GENM.

On the rationale for this move, GENM said that this would better position the Resorts World brand in the northeastern US gaming market through more effective cross marketing with Resorts World Casino New York City.

Additionally it would also attract additional customers from other states, such as New Jersey and Pennsylvania by introducing new marketing efforts in these geographies and increasing market penetration of high-end players.

It would also be able to participate in Empire’s future growth opportunities in the Orange County Opportunity, which is located close to Woodbury Commons Premium Outlet Mall, a renowned shopping outlet in the state of New York which is popular with international tourists.

Source: The Star

https://www.thestar.com.my/business/bus ... z80ttcU.99
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