Genting Singapore inks new deal for $4.5 bil expansion of Resorts World Sentosa; exclusivity period for IR extended to end-2030
https://www.theedgesingapore.com/?q=gen ... -period-ir
|
|
Genting Spore 03 (Nov 14 - Dec 26)
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri Apr 05, 2019 11:37 am
Vested
Another update on the new tax structure for GENS effective from March 2022. Even with the rise in taxes, it is still well below Macau’s 39% gaming tax for casinos.
The S$4.5bn in additional capex to mainly expand its attractions and the new tax was a key reason for consensus downgrade of GENS yesterday.
GENS had net cash of S$3.2bn and generates close to S$1bn in FCF annually and hence, is in a good position to still bid for the potential integrated resort in Japan.
Overall, we think the sell-off was overdone and presents an attractive risk-reward trade over the next two quarters. Valuations are rock bottom with its 6.8x forward EV/EBITDA at a 50% discount to the 7-yr historical average. It pays out a decent 3.8% div yield.
Source: KGI
Another update on the new tax structure for GENS effective from March 2022. Even with the rise in taxes, it is still well below Macau’s 39% gaming tax for casinos.
The S$4.5bn in additional capex to mainly expand its attractions and the new tax was a key reason for consensus downgrade of GENS yesterday.
GENS had net cash of S$3.2bn and generates close to S$1bn in FCF annually and hence, is in a good position to still bid for the potential integrated resort in Japan.
Overall, we think the sell-off was overdone and presents an attractive risk-reward trade over the next two quarters. Valuations are rock bottom with its 6.8x forward EV/EBITDA at a 50% discount to the 7-yr historical average. It pays out a decent 3.8% div yield.
Source: KGI
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Tue Apr 09, 2019 7:45 am
vested
Sentosa; exclusivity period for IR extended to end-2030
By Stanislaus Jude Chan
03/04/19
SINGAPORE (Apr 3): Genting Singapore is committing to an investment of some $4.5 billion for the expansion of the integrated resort (IR) at Resorts World Sentosa (RWS), which will see the property increase its gross floor area by approximately 50%.
In view of the substantial investment and to provide business certainty, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands to end-2030. Authorities add that no other casinos will be introduced during this period.
Genting Singapore’s indirect wholly-owned subsidiary, Resorts World at Sentosa (RWSPL), on Wednesday entered into the second supplemental agreement with Sentosa Development Corporation (SDC).
The new deal will see Resorts World Sentosa add some 164,000 sq m of gross floor area of leisure and entertainment space.
The new developments will include the expansion of Universal Studios Singapore, with the addition of two new theme parks – Minion Park and Super Nintendo World; the expansion of the S.E.A. Aquarium to be re-branded as "Singapore Oceanarium"; and the conversion of the Resorts World Theatre into a new Adventure Dining Playhouse.
RWS will also see the addition of 1,100 hotel rooms, with two new destination hotels at a new waterfront lifestyle complex, together with the expansion of the Central Zone.
On top of an enhanced waterfront promenade to be lined with restaurants and retail outlets, there will also be an expansion of Meetings, Incentives, Conferences and Exhibitions (MICE) facilities.
To further improve accessibility into Sentosa, RWS will introduce a driverless transport system offering visitors new and more efficient last-mile connectivity, across the Sentosa Boardwalk.
The expansion development will be funded by way of internal resources including operating cash flows, as well as bank borrowings.
The group says the expansion development is a significant reinvestment and expansion opportunity for the company, which will set the stage for the group's sustained future growth.
“When completed, the expanded IR is anticipated to continue to provide a distinctive purpose-of-visit tourism experience and further broaden the IR’s appeal to a wider spectrum of premium customers and millennials,” Genting Singapore says in a statement on Wednesday.
“It will integrate with the future Greater Southern Waterfront and is expected to become the centrepiece of the new entertainment hub of Asia,” it adds.
Genting Singapore says the expansion development is not expected to have a material impact on the group's earnings per share or net tangible asset value per share for the current financial year.
Shares in Genting Singapore closed 0.9% higher at $1.07 on Wednesday, before the release of the announcement.
Separately, in a joint press release on Wednesday, the Ministry of Trade and Industry, the Ministry of Finance, the Ministry of Home Affairs and the Ministry of Social and Family Development say RWS will be given an option to deploy an additional 500 sq m of approved gaming area (AGA). The IRs are currently each allowed 15,000 sq m of AGA.
RWS will also be given an option to increase its allowable gaming machines by 800. Within the AGA, each IR is currently allowed 2,500 gaming machines.
The government on Wednesday also announced that casino entry levies for Singaporeans and permanent residents will be raised by 50% from April 4, 2019.
The daily levy will be raised from $100 to $150, and the annual levy will be increased from $2,000 to $3,000, with a 5-year moratorium.
Source: The Edge
https://www.theedgesingapore.com/?q=gen ... 401b309bc7
Sentosa; exclusivity period for IR extended to end-2030
By Stanislaus Jude Chan
03/04/19
SINGAPORE (Apr 3): Genting Singapore is committing to an investment of some $4.5 billion for the expansion of the integrated resort (IR) at Resorts World Sentosa (RWS), which will see the property increase its gross floor area by approximately 50%.
In view of the substantial investment and to provide business certainty, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands to end-2030. Authorities add that no other casinos will be introduced during this period.
Genting Singapore’s indirect wholly-owned subsidiary, Resorts World at Sentosa (RWSPL), on Wednesday entered into the second supplemental agreement with Sentosa Development Corporation (SDC).
The new deal will see Resorts World Sentosa add some 164,000 sq m of gross floor area of leisure and entertainment space.
The new developments will include the expansion of Universal Studios Singapore, with the addition of two new theme parks – Minion Park and Super Nintendo World; the expansion of the S.E.A. Aquarium to be re-branded as "Singapore Oceanarium"; and the conversion of the Resorts World Theatre into a new Adventure Dining Playhouse.
RWS will also see the addition of 1,100 hotel rooms, with two new destination hotels at a new waterfront lifestyle complex, together with the expansion of the Central Zone.
On top of an enhanced waterfront promenade to be lined with restaurants and retail outlets, there will also be an expansion of Meetings, Incentives, Conferences and Exhibitions (MICE) facilities.
To further improve accessibility into Sentosa, RWS will introduce a driverless transport system offering visitors new and more efficient last-mile connectivity, across the Sentosa Boardwalk.
The expansion development will be funded by way of internal resources including operating cash flows, as well as bank borrowings.
The group says the expansion development is a significant reinvestment and expansion opportunity for the company, which will set the stage for the group's sustained future growth.
“When completed, the expanded IR is anticipated to continue to provide a distinctive purpose-of-visit tourism experience and further broaden the IR’s appeal to a wider spectrum of premium customers and millennials,” Genting Singapore says in a statement on Wednesday.
“It will integrate with the future Greater Southern Waterfront and is expected to become the centrepiece of the new entertainment hub of Asia,” it adds.
Genting Singapore says the expansion development is not expected to have a material impact on the group's earnings per share or net tangible asset value per share for the current financial year.
Shares in Genting Singapore closed 0.9% higher at $1.07 on Wednesday, before the release of the announcement.
Separately, in a joint press release on Wednesday, the Ministry of Trade and Industry, the Ministry of Finance, the Ministry of Home Affairs and the Ministry of Social and Family Development say RWS will be given an option to deploy an additional 500 sq m of approved gaming area (AGA). The IRs are currently each allowed 15,000 sq m of AGA.
RWS will also be given an option to increase its allowable gaming machines by 800. Within the AGA, each IR is currently allowed 2,500 gaming machines.
The government on Wednesday also announced that casino entry levies for Singaporeans and permanent residents will be raised by 50% from April 4, 2019.
The daily levy will be raised from $100 to $150, and the annual levy will be increased from $2,000 to $3,000, with a 5-year moratorium.
Source: The Edge
https://www.theedgesingapore.com/?q=gen ... 401b309bc7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Thu Apr 11, 2019 11:44 am
vested
Genting Singapore ($0.965, down 0.5 cents) announced that Resorts World at Sentosa Pte.
Ltd., an indirect wholly-owned subsidiary of the Company, will make a voluntary full
prepayment of the outstanding S$680mln under its S$2.27bln syndicated senior secured
credit facililities dated 23-Mar-15 (the “Loan Repayment”), and cancel the said facililities on
25-Apr-19.
The Loan Repayment will be paid from internal cash resources of the Group (being the Company and its subsidiaries) and will allow the Group to improve its capital efficiency.
Following the above, the borrowings of the Group will be reduced from S$933mln to S$253mln.
Source: Lim & Tan
Genting Singapore ($0.965, down 0.5 cents) announced that Resorts World at Sentosa Pte.
Ltd., an indirect wholly-owned subsidiary of the Company, will make a voluntary full
prepayment of the outstanding S$680mln under its S$2.27bln syndicated senior secured
credit facililities dated 23-Mar-15 (the “Loan Repayment”), and cancel the said facililities on
25-Apr-19.
The Loan Repayment will be paid from internal cash resources of the Group (being the Company and its subsidiaries) and will allow the Group to improve its capital efficiency.
Following the above, the borrowings of the Group will be reduced from S$933mln to S$253mln.
Source: Lim & Tan
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Thu Apr 25, 2019 10:17 pm
vested
Genting Singapore Has Fallen 13.5%. Is it Cheap Now?
by Tim Phillips
Source: Motley Fool
https://www.fool.sg/2019/04/24/genting- ... cheap-now/
Genting Singapore Has Fallen 13.5%. Is it Cheap Now?
by Tim Phillips
Genting reported a decent set of earnings for the fiscal year 2018. Revenue was up 6% year-on-year to S$2.5 billion, while operating profit rose 9% year on year to S$975 million.
Genting is generating an average of S$1 billion of free cash flow per year. Thus, it would seem that the company should not have trouble funding the S$0.9 billion of spending per year to upgrade and renew the IR.
Also, with a large cash balance in excess of S$4 billion, this also means that the company should be able to tap this for further funding needs, and would also imply that it should be able to continue paying its current dividend of 2 Singapore cents per share.
Source: Motley Fool
https://www.fool.sg/2019/04/24/genting- ... cheap-now/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri May 10, 2019 8:44 am
vested
Genting Singapore posts 5% drop in 1Q earnings to $205.5 mil on lower gaming revenue
By Samantha Chiew
SINGAPORE (May 9): Genting Singapore (GENS) reported 1Q19 earnings fell 5% to $205.5 million from $217.2 million in 1Q18.
This came on the back of a 5% drop in revenue to $640.4 million from $675.1 million last year, mainly due the group’s gaming business in Resorts World Sentosa experiencing an 8% y-o-y drop in revenue to $430.2 million.
This was partially offset by higher revenue from the group’s non-gaming business in the Singapore IR, which saw 1% y-o-y increase to $209.3 million, marking its eighth consecutive quarter of y-o-y revenue growth with higher spend per visitor; as well as a 56% increase from other revenue to $0.9 million.
However, cost of sales increased by 6% to $351.2 million, causing 1Q19 gross profit to come in 16% lower at $289.2 million from a year ago.
Other operating income saw a fourfold increase to $4.9 million, compared to $1.2 million in the previous year.
Interest income also increased 39% y-o-y to $21.8 million.
Administrative expenses increased 1% to $43.1 million, while selling and distribution expenses dropped 1% to $12.3 million and other operating expenses fell 83% to $3.9 million.
During the quarter, hotel occupancy remained high at 93%.
Notwithstanding challenges from both the local and regional economies, the group says it will continue its marketing efforts especially towards the regional premium mass segment.
Source: The Edge
https://www.theedgesingapore.com/gentin ... 401b309bc7
Genting Singapore posts 5% drop in 1Q earnings to $205.5 mil on lower gaming revenue
By Samantha Chiew
SINGAPORE (May 9): Genting Singapore (GENS) reported 1Q19 earnings fell 5% to $205.5 million from $217.2 million in 1Q18.
This came on the back of a 5% drop in revenue to $640.4 million from $675.1 million last year, mainly due the group’s gaming business in Resorts World Sentosa experiencing an 8% y-o-y drop in revenue to $430.2 million.
This was partially offset by higher revenue from the group’s non-gaming business in the Singapore IR, which saw 1% y-o-y increase to $209.3 million, marking its eighth consecutive quarter of y-o-y revenue growth with higher spend per visitor; as well as a 56% increase from other revenue to $0.9 million.
However, cost of sales increased by 6% to $351.2 million, causing 1Q19 gross profit to come in 16% lower at $289.2 million from a year ago.
Other operating income saw a fourfold increase to $4.9 million, compared to $1.2 million in the previous year.
Interest income also increased 39% y-o-y to $21.8 million.
Administrative expenses increased 1% to $43.1 million, while selling and distribution expenses dropped 1% to $12.3 million and other operating expenses fell 83% to $3.9 million.
During the quarter, hotel occupancy remained high at 93%.
Notwithstanding challenges from both the local and regional economies, the group says it will continue its marketing efforts especially towards the regional premium mass segment.
Source: The Edge
https://www.theedgesingapore.com/gentin ... 401b309bc7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri May 10, 2019 10:13 am
vested
Genting Singapore (GENS SP)
1Q19: Minor Earnings Beat
1Q19 EBITDA slightly beat expectations, but we expect softer EBITDA momentum in subsequent quarters - easing gaming volumes and assuming the win % falls back to the theoretical levels.
The key re-rating catalyst continues to be its bid for the Japan gaming concession (RFC submission expected in 3Q19).
Meanwhile, the company’s balance sheet and cash flow can amply fund both RWS’ hefty capex and the Japan concession, while maintaining dividends.
Maintain BUY. Target price: S$1.26.
Source: UOBKH
https://research.uobkayhian.com/content ... 38881358b2
Genting Singapore (GENS SP)
1Q19: Minor Earnings Beat
1Q19 EBITDA slightly beat expectations, but we expect softer EBITDA momentum in subsequent quarters - easing gaming volumes and assuming the win % falls back to the theoretical levels.
The key re-rating catalyst continues to be its bid for the Japan gaming concession (RFC submission expected in 3Q19).
Meanwhile, the company’s balance sheet and cash flow can amply fund both RWS’ hefty capex and the Japan concession, while maintaining dividends.
Maintain BUY. Target price: S$1.26.
Source: UOBKH
https://research.uobkayhian.com/content ... 38881358b2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri May 10, 2019 10:13 am
vested
Genting Singapore (GENS SP)
1Q19: Minor Earnings Beat
1Q19 EBITDA slightly beat expectations, but we expect softer EBITDA momentum in subsequent quarters - easing gaming volumes and assuming the win % falls back to the theoretical levels.
The key re-rating catalyst continues to be its bid for the Japan gaming concession (RFC submission expected in 3Q19).
Meanwhile, the company’s balance sheet and cash flow can amply fund both RWS’ hefty capex and the Japan concession, while maintaining dividends.
Maintain BUY. Target price: S$1.26.
Source: UOBKH
https://research.uobkayhian.com/content ... 38881358b2
Genting Singapore (GENS SP)
1Q19: Minor Earnings Beat
1Q19 EBITDA slightly beat expectations, but we expect softer EBITDA momentum in subsequent quarters - easing gaming volumes and assuming the win % falls back to the theoretical levels.
The key re-rating catalyst continues to be its bid for the Japan gaming concession (RFC submission expected in 3Q19).
Meanwhile, the company’s balance sheet and cash flow can amply fund both RWS’ hefty capex and the Japan concession, while maintaining dividends.
Maintain BUY. Target price: S$1.26.
Source: UOBKH
https://research.uobkayhian.com/content ... 38881358b2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri May 10, 2019 10:16 am
vested
Genting Singapore (GENS SP, NEUTRAL, TP: SGD1.02)
Muted Topline Growth; Keep NEUTRAL
Results Review
Stay NEUTRAL, new DCF-based TP of SGD1.02 from SGD1.08, 7% upside plus 3% FY19F yield.
Genting Singapore’s 1QFY19 core earnings of SGD207.8m (-4.4% YoY) are within our but above Street estimates.
The YoY drop in core earnings was due to lower gaming volume, partially cushioned by lower costs.
We tweak FY19-21 projections by 0-5.2%, imputing lower VIP growth assumptions, capex for the re-development of RWS, as well as a minor model up-keeping exercise – which led to a lower TP.
Source: RHB
https://research.rhbtradesmart.com/atta ... 465d76.pdf
Genting Singapore (GENS SP, NEUTRAL, TP: SGD1.02)
Muted Topline Growth; Keep NEUTRAL
Results Review
Stay NEUTRAL, new DCF-based TP of SGD1.02 from SGD1.08, 7% upside plus 3% FY19F yield.
Genting Singapore’s 1QFY19 core earnings of SGD207.8m (-4.4% YoY) are within our but above Street estimates.
The YoY drop in core earnings was due to lower gaming volume, partially cushioned by lower costs.
We tweak FY19-21 projections by 0-5.2%, imputing lower VIP growth assumptions, capex for the re-development of RWS, as well as a minor model up-keeping exercise – which led to a lower TP.
Source: RHB
https://research.rhbtradesmart.com/atta ... 465d76.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Re: Genting Spore 03 (Nov 14 - Dec 19)
by winston » Fri May 10, 2019 10:22 am
vested
Genting Singapore (GENS SP)
Share Price: SGD0.95
Target Price: SGD1.04
Recommendation: Hold
High VIP win rate masked weak fundamentals in 1Q19
1Q19 net profit exceeded our expectation on higher-than-expected VIP win rate.
That said, 1Q19 Resorts World Sentosa (RWS) VIP volume and mass market gross gaming revenue (GGR) weakened YoY.
We opine it will not be easy for both to grow going forward and trim our EBITDA estimates by 5-6%.
Ascribing an unchanged 8x FY19E EV/EBITDA (-1 SD to long-term mean), we trim our TP to SGD1.04 from SGD1.12.
Reiterate HOLD for moderate TP upside and potential expansion into Japan.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... d80180.pdf
Genting Singapore (GENS SP)
Share Price: SGD0.95
Target Price: SGD1.04
Recommendation: Hold
High VIP win rate masked weak fundamentals in 1Q19
1Q19 net profit exceeded our expectation on higher-than-expected VIP win rate.
That said, 1Q19 Resorts World Sentosa (RWS) VIP volume and mass market gross gaming revenue (GGR) weakened YoY.
We opine it will not be easy for both to grow going forward and trim our EBITDA estimates by 5-6%.
Ascribing an unchanged 8x FY19E EV/EBITDA (-1 SD to long-term mean), we trim our TP to SGD1.04 from SGD1.12.
Reiterate HOLD for moderate TP upside and potential expansion into Japan.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... d80180.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 112616
- Joined: Wed May 07, 2008 9:28 am
Who is online
Users browsing this forum: No registered users and 6 guests