Genting Spore 03 (Nov 14 - Dec 26)

[winston]

by behappyalways:-

RWS: Singaporean staff dropped by 15%?

http://www.tremeritus.com/2016/09/09/rw ... ped-by-15/

[winston]

not vested

GEN Singapore a hoarder of cash on Japan hopes: UBS

UBS estimated that Genting Singapore – which operates the Resorts World Sentosa property, one of two casino venues in Singapore – would have net cash of SGD3.81 billion as of year-end 2016.

The institution assumed there would be bad debt provision of SGD229 million at Resorts World Sentosa for 2016 – with the second half contributing SGD83 million of the annual total. It expects provision for aged credit to decline to SGD154 million for 2017.

Source: GGR Asia

http://www.ggrasia.com/gen-singapore-a- ... hopes-ubs/

[winston]

not vested

Genting Singapore 3Q profit doubles on better margins

Genting Singapore Plc reported net profit of SGD106.9 million (US$77.1 million) for the third quarter of 2016, compared to SGD37.2 million in the prior-year period.

Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 12 percent year-on-year to SGD233.6 million.

The company is the operator of Singapore casino complex Resorts World Sentosa (pictured) and is a subsidiary of Malaysian conglomerate Genting Bhd.

“The group performed very well in this third quarter 2016,” Genting Singapore said in Singapore Exchange filing on Thursday. “This achievement has been the fruits of our ongoing commitment to focus on better-margin business and [on] managing operational efficiency for better margins,” the firm added.

Genting Singapore reported aggregate revenue of SGD581.5 million for the three months to September 30, down by 9 percent from a year earlier.

The company’s gaming revenue fell by 10 percent year-on-year, to SGD407.4 million. Genting Singapore said it remained “cautious” regarding its VIP business, given what it termed the “ongoing uncertainty in the gaming industry in Asia”.

“Since early 2016, we have scaled down this business segment and the provision for bad debts related to this segment has consequently reduced. We will continue to see improved margins in this segment over the next few quarters,” said the firm.

The company reported an impairment loss on trade receivables – including credit extended to VIP players but not paid back – of SGD50.2 million for the quarter, down 46 percent from the prior-year period.

“Together with a measured approach in the premium mass market, we are confident of a sustainable earnings growth into the next year,” said Genting Singapore.

The company stated that Resorts World Sentosa “delivered a healthy set of results against the backdrop of a challenging operating environment”.

The property’s revenue increased by 21 percent quarter-on-quarter “from the favourable performance of the attractions and hotel business as well as improved VIP rolling win percentage”.

For the first nine months of 2016, Genting Singapore registered revenue of SGD1.67 billion, down by 10 percent from the prior-year period. Adjusted EBITDA for the nine-month period declined by 26 percent year-on-year to SGD545.3 million.

Genting Singapore announced on Thursday an interim dividend of SGD0.015 (US$0.011) per ordinary share, to be paid on December 7.

Source: GGR Asia

https://www.ggrasia.com/genting-singapo ... r-margins/

[winston]

not vested

Superb margins, surprise dividend
S$0.76 tp:S$0.89

3Q adj. EBITDA exceeded expectations on the back of lower operating expenses as cost efficiency initiatives paid off. Adj. EBITDA margin was the highest in 9 quarters.

9M core net profit formed 75%/82% of our/consensus full-year forecasts.

A surprise interim DPS of 1.5 Scts was declared (101% payout of 9M16 core EPS).

Maintain Add, with an unchanged SOP-based target price of S$0.89.

Source: CIMB

https://brokingrfs.cimb.com/ByMBVRMIGej ... HKceA2.pdf

[winston]

not vested

Genting Singapore: More than a lucky quarter

Genting Singapore’s (GS) posted a strong set of 3Q16 results.

Revenue growth was in line with expectations: 3Q16 revenue dropped 8.6% YoY to S$581.5m.

However, adj. EBITDA beat our expectations at S$233.6m, or 11.6% higher YoY, due to the greater-than-expected cost-savings from GS’s right-sizing exercise in 2Q.

3Q and 9M adj. EBITDA constituted 34% and 79% of our initial FY16 forecast respectively.

Management appears optimistic with regard to the Japanese Diet’s casino bill debate, which is expected to happen 9 Nov 2016.

Having scaled down its VIP segment and taken less credit risk, GS appears to be in better stead in this tough operating environment.

Including Genting’s 1.5 S cent interim dividend, our blended FY16/FY17 dividend yield comes to 2.6%.

Source: OCBC

[behappyalways]

Genting Singapore's 3Q earnings more than quadruple to $107 mil
http://www.theedgemarkets.com.sg/sg/art ... le-107-mil

[winston]

not vested

After a tough run, Genting Singapore’s earnings look set to recover

By Michelle Zhu

SINGAPORE (Nov 4): DBS Vickers Securities is reiterating its “buy” call on Genting Singapore (GENS) with an unchanged target price of 91 cents, with a view that the resorts and casino operator is closing in on a recovery of earnings in FY17.

(See also: Genting Singapore’s 3Q earnings more than quadruple to $107 mil)

In a Thursday report, analyst Mervyn Song says he expects VIP volumes to go up as volumes bottom out this year, VIP win rate to normalise to a theoretical 2.85%. Song also expects the easing of bad debts, given GENS’ “more selective and conservative credit policy” over the past year.

“Following two tough years, we believe now is the opportune time to buy into a highly cash generative business in a two player oligopoly,” says the analyst.

However, Song acknowledges that GENS’ overall VIP rolling chip remains soft, having dropped between 35-40%, while its mass business “continues to lack significant momentum”.

Aside from GENS’ Resorts World Sentosa, the only other integrated casino resort in Singapore’s gaming market is Marina Bay Sands, owned by US company Las Vegas Sands Corp.

Song also highlights GENS’ net cash of $3.7 billion, which represents about 40% of its current market capitalisation and allows the company to remain in a strong position to fund any potential development of an integrating resort, despite increasing its dividends.

“We are not ruling out share buybacks given GENS depressed share price. In our view, the strong balance sheet also provides GENS with financial muscle to invest in a Japanese integrated resort should legislation be passed to legalise casinos in November,” says Song.

Either of these developments would be catalysts in re-rating the stock, he adds.

Shares of Genting Singapore closed 5 cents higher at 90 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/a ... et-recover

[winston]

not vested

Genting Singapore a bet on earnings recovery, higher dividends

By Benjamin Cher

SINGAPORE (Nov 24): DBS Group Research is reiterating its “buy” call for Genting Singapore with a higher target price of $1.15, citing earnings recovery and potential doubling of dividends.

Analyst Mervin Song notes that the company has the ability to increase its FY16 dividend to 6 cents per share, up from FY15’s 3 cents per share.

This is due to its cash generation and net cash position, even with the redemption of its perpetual securities and potential bid for a Japanese casino.

“We believe the positive market response following the declaration of a 1.5 cents interim dividend will encourage Genting Singapore’s management to return more cash back to its shareholders,” says Song.

“This in turn should continue the rerating post the 3Q16 results,” he adds.

Song believes that now is an opportune time to buy into the stock, with 2017 marking a recovery in earnings. This is driven by recovery in VIP volumes as it bottoms out this year, normalising of VIP win rates to 2.85% from 2.6% in 9M16 and easing of bad debts from a more selective and conservative credit policy over the past year.

The stock is also trading on depressed valuations, even after the recent rally, notes Song. The counter currently trades at a 30% discount to its Macau counterparts on an EV/EBITDA basis.

“With increasing dividends, earnings turnaround in sight and potential Japanese casino in the medium term, we believe Genting Singapore can rerate closer to its average EV/EBITDA multiple of 13.1x,” says Song.

Shares of Genting Singapore closed at 96 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/g ... 6-87358173

[winston]

not vested

Chips are rolling in for Genting investors next year

By Michelle Zhu

SINGAPORE (Dec 6): CIMB is giving Genting Singapore (GENS) an “add” recommendation, with a target price of 89 cents, while declaring Singapore’s gaming sector as “overweight”.

“GENS has done well to shift its business focus from the VIP gaming segment to the mass and premium mass segments in the face of headwinds from China’s anti-corruption drive,” notes analyst Jessalynn Chen in a Monday report.

The leisure, hospitality and integrated resorts development specialist recently embarked on a restructuring of its business. This included deploying staff from VIP to mass; removing redundancies; refreshing and upgrading its hotels and exhibits; and introducing targeted events and initiatives in attempts to draw in new crowds.

“These efforts have paid off, with 3Q16 adjusted EBITDA margin reaching the highest level in nine quarters,” she comments.

“We expect 3Q16’s hold-normalised adjusted EBITDA to be the baseline level going forward, as the tail end of cost cuts and potential upside from efforts to draw in mass and premium mass visitation come through.”

(See also: Genting Singapore’s 3Q earnings more than quadruple to $107 mil)

The analyst sees two key catalysts ahead for the stock:
1. GENS’s commitment to pay higher a higher proportion of cash generated from Resorts World Sentosa (RWS) to its shareholders, as well as
2. Positive news from Japan on its impending casino bill.

“Key risks to our positive outlook on the gaming sector include a slowdown in tourist arrivals to Singapore, especially from the key markets of China, Indonesia and Malaysia, and no casino bill being passed,” says Chen.

Shares of GENS closed 2 cents higher at 98 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/c ... up-content

[behappyalways]

Genting Singapore shares extend rally as Japan edges closer to legalizing casinos
http://www.cnbc.com/2016/12/06/genting- ... sinos.html