Genting Spore 03 (Nov 14 - Dec 26)

[winston]

not vested

Genting Singapore’s share buyback gets Deutsche Bank’s nod

SINGAPORE (Nov 20): Genting Singapore ( Financial Dashboard)’s share-buyback programme is a step in the right direction, considering its current low share price and huge cash pile, which it has no immediate need of, says Deutsche Bank.

The gaming group has been actively buying back its own shares on the open market ever since they pulled back to a four-year low of about $1 last week, when it reported weaker 302014 results and said its near-term outlook would be challenging amid a slowdown in business from VIP players from China.

As of 30 Sept, the company had gross cash of $3.2 billion, $2.1 billion worth of available-for-sale financial assets, $2.3 billion worth of perpetual income securities, and $1.8 billion of debt.

“With no immediate need for its excess capital and given (its) current low share price, we view Genting Singapore’s buy-back program positively,” Deutsche Bank analyst Chia Aun-Ling said in a note.

“Shares purchased are to be cancelled, hence leading to a more effective capital management given its excess cash pile.”

The group has approval from shareholders to buy back up to 10% of its paid-up capital or 1.22 billion shares.

At its current price, Genting Singapore will need to spend $1.32 billion to mop up the maximum number of shares it can buy back, according to Chia, who has a “buy” call and $1.32 price target on the stock.

That would boost its earnings per share by 5.4%, she said.

“This is an amount that Genting Singapore can surely afford but from an EPS accretion point of view, we believe it makes more sense for Genting Singapore to buy below $1.25/share,” she noted.

“Beyond that, the benefit of EPS accretion is less clear.”

Genting Singapore shares rose 1.4% to $1.105 at 1:47pm (0547 GMT).

Source: The Edge

[winston]

not vested

DJ Genting Buyback Program Good for the Company and Investors -- Market Talk

GMT [Dow Jones] Genting Singapore (G13.SG) is up 1.4% at S$1.11 on Thursday after buying its own shares.

Deutsche Bank says the gaming firm has bought back its own shares since November 13, absorbing 21.6 million shares that are to be canceled.

Deutsche says it views the buy-back program positively as Genting has no immediate need for its excess capital and the cancellation of the shares will lead to a more effective capital management.

Genting closed at S$1.02 on Nov. 12, the lowest in more than four years.

Source: Dow Jones Newswires

[winston]

At What Price Would Benjamin Graham Buy Genting Singapore? By Adam Kuo

Value investing is all about finding stocks that are priced less than their intrinsic worth. Every investor has their own method of determining the intrinsic value.

Benjamin Graham, widely regarded as the founder of value investing, has his own set of criteria.

One of his criteria was that the earnings yield, the inverse of the P/E ratio, should be at least twice the yield on a triple-A bond. With the 10-year US Treasury currently at 2.4%, we should ideally be looking for an earnings yield coming close to 5%.

Genting Singapore PLC (SGX: G13), the operator of Resorts World Sentosa, has an earnings yield of 4%. On this measure Genting would seem overpriced.

In terms of its earnings yield, there are two ways that Genting could fall into the bracket of a value share. Firstly, its earnings could rise and inefficiencies in the market could lead to Genting becoming attractive.

Alternatively, for Genting to have a more appealing earnings yield its share price would have to fall by around 20%. This corresponds to a share price of around $0.90 or a fall of nearly 22 cents from its current price.

Perhaps a better measure is the price-to-book value, since the book value gives a good measure of the underlying value of a company. Genting has a price-to-book ratio of around 1.4. An ideal value share would be priced below its book value, that is it should have a price to book ratio of less than one.

To bring Genting’s price to book ratio down to one the share price would now have to fall to S$0.81 cents a share. This represents a hefty reduction of nearly 30% from its current value.

There are many other factors that need to be considered. For instance Graham placed an importance on finding a company that could demonstrate positive growth in its net income over the last five years. Genting achieved this until 2013.

Similarly there are measures of a company’s risk which need to be explored, too. A current ratio of two is preferable since it suggests the company is able to manage its debt obligations. A healthy balance sheet confers Genting with a current ratio of over 4.

Whilst Genting may meet some of the criteria Graham laid out when searching for a value share, its current price might be too inflated. With all other factors remaining constant, value investors are unlikely to be tempted in unless Genting’s share price falls below the S$1 mark.

Source: Motley Fool

[winston]

not vested

Genting Singapore Q4 Profit Drops by Monica Gerson

Genting Singapore PLC reported a 30% decline in its net profit for the fourth quarter.

Genting Singapore's quarterly net profit fell to 119 million Singapore dollars (US$87 million), from S$170 million, in the year-ago period.

Its revenue shrank 8% to S$638 million. Gaming revenue slipped 9% to S$461.3 million.

Adjusted earnings before interest, tax, depreciation and amortisation dropped 24% to S$190.2 million.

Source: Benzinga

[winston]

Genting Singapore: Expects VIP volume to remain weak

Genting Singapore (GS) reported a poorer-than-expected set of 4Q14 results last night, hit by the slide in China inbound visitors as well as a lower-than-expected win rate.

As such, FY14 revenue grew just 1% to S$2862.5m, about 5% below our forecast, while reported NPAT slipped 12% to S$517.3m, or nearly 10% below our estimate.

GS declared a final dividend of S$0.01/share, unchanged from last year.

Going forward, GS expects its VIP business to remain weak, with potential for more bad debt provisions in the near term; but will focus more on the mass premium market to help make up the numbers.

A potential boost could come in Jun 2015 with the opening of its 550-room hotel in Jurong; this could bring an additional 1.5k daily visitors to its IR this year.

Nevertheless, we opt to pare our FY15 estimates for revenue by 12% and NPAT by 23%, preferring to err on the side of caution.

Having said that, our DCF-based fair value improves slightly from S$1.01 to S$1.03 as we include some contribution from its Jeju IR from FY17 onwards.

Maintain HOLD and believe that value is emerging around S$0.95 or better.

Source: OCBC

[winston]

There Might Be A $1.1 Billion Hole In Genting Singapore PLC’s Pocket

http://www.fool.sg/2015/03/05/there-mig ... cs-pocket/

[winston]

not vested

The Competitive Strengths and Weaknesses of Genting Singapore PLC That Investors Should Know

http://www.fool.sg/2015/03/18/the-compe ... ould-know/

[behappyalways]

Tumbling ringgit raises stakes for budget gamblers in Singapore
http://www.reuters.com/article/2015/04/ ... IB20150402

[winston]

Genting Singapore: Medium-term challenges remain

Genting Singapore (GS) reported a weak set of 1Q15 results last night, with revenue down 23% at S$639.2m, meeting just 23% of our full-year forecast; core earnings fell 70% to S$61.3m, meeting just 13% of our FY15 estimate.

Going forward, management notes that the environment for the gaming industry in Asia remains challenging, especially for the premium segment; and it does not expect any respite in the medium term.

In light of the near-term challenges and potential provisions, we see the need to revise down our forecasts again – paring our FY15 revenue forecast by 12% and earnings by 28%; FY16 revenue by 9%, earnings by 16%.

This will also reduce our DCF-based fair value from S$1.03 to S$0.95.

Downgrade to SELL for now.

Source: OCBC

[winston]

not vested

Genting Singapore: Pessimism likely priced in

Genting Singapore’s (GS) share price continues to languish around the S$0.90 region, just off fresh 52-week low of S$0.895;

But around current levels, we believe that most of the pessimism is likely priced in.

Despite the near-term challenges, we continue to see GS as a 2017 story and one with a strong overseas angle.

The first being the opening of its integrated resort on Jeju Island, South Korea and the second will be the building of IRs in Japan.

For these reasons and also on valuation grounds, we maintain our HOLD rating on the stock with an unchanged fair value of S$0.95.

Source: OCBC