Genting Berhad / Lim Kok Thay

[winston]

not vested

Genting Bhd (GENT MK)
Not much upside from the return of Chinese visitors
Maintain BUY and MYR5.35 SOP-based TP

Under a ‘blue sky’ scenario where the 1.0m Chinese visitors that visited RWG in FY19A return in FY24E and RWS FY24E mass market GGR recovers to 100% of FY19A levels driven by the return of Chinese tourists, our FY24E earnings for GENT could be raised by 10% but our SOP-based TP could be tweaked by only 3% to MYR5.51.

Yet, there could be upside from RWLV should Chinese visitors return to Las Vegas.

We maintain our earnings estimates, BUY call and MYR5.35 SOP-based TP for now.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/288197.pdf

[winston]

not vested

Best quarterly result in years
Maintain BUY call with higher TP of MYR5.49 (+2%)

Results handily beat our expectations on better-than-expected RWS VIP volume and Meizhou Wan contributions.

In fact, 3Q23 core net profit was the highest since 4Q19.

Going forward, we believe that the earnings outlook for GENT’s major segments is bright.

RWLV also appears to have found its footing with another record EBITDA of USD52m in 3Q23.

We raise FY23E/FY24E/FY25E EPS for GENT by 37%/15%/11% and our SOP-TP to
MYR5.49 from MYR5.36. Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/352732.pdf

[winston]

not vested

Winning at every table

9M23 core net profit was in line, at 74%/73% of our/Bloomberg consensus’ full-year forecasts, amid better performance for all subsidiaries.

GENT remains a strong proxy to the revival of tourist arrivals in both Malaysia and Singapore, in our view.

Reiterate Add with unchanged TP of RM6.95 based on a 30% SOP discount

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 541E4228CE

[winston]

not vested

Genting (GENT MK)
TauRx’s Positive Discovery A Potential Wild Card

TauRx’s convincing 24-month Phase 3 clinical trial data for its Alzheimer’s HMTM drug may be the missing puzzle piece for regulatory approval, and could eventually unlock deep value in GENT’s investment.

On hindsight, the procedure for HTMTM securing approval and commercial rollout may be lengthy. That said, even without the TauRx factor, GENT trades at a cheap valuation with plenty of re-rating catalysts.

Maintain BUY with a higher target price of RM6.13 as we partially impute TauRx’s option value.

Source: UOBKH

https://research.uobkayhian.com/content ... b4c6f7ebfb

[winston]

not vested

Genting’s 1Q net profit surges to RM589mil

In the first quarter ended March 31, Genting’s net profit surged to RM588.9mil, or earnings per share of 15.29 sen compared with RM98.04mil, or 2.55 sen achieved in the same quarter last year.

The group’s revenue rose 28% to RM7.43bil against RM5.82bil a year ago, contributed mainly by the leisure & hospitality division.

Source: The Star

https://www.thestar.com.my/business/bus ... o-rm589mil

[winston]

ESG 2.0: Could have done better

Maintain BUY and MYR5.83 SOP-TP GENT’s 2023 Sustainability Report is a lot more detailed than before.

Positively, 2 of its largest integrated resorts (i.e. RWG and RWS) have had their responsible gambling efforts recognised. Yet, we note a couple of points for improvement:-
(i) proportion of independent non-executive directors ought to return to ≥60%; and
(ii) more women directors could be appointed to its BOD.

We reduce our ESG 2.0 score for GENT to 52/100 from 59/100, the former based on disclosures in its latest reports.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/412916.pdf

[winston]

not vested

ESG 2.0: Could have done better

Maintain BUY and MYR5.83 SOP-TP GENT’s 2023

Sustainability Report is a lot more detailed than before. Positively, 2 of its largest integrated resorts (i.e. RWG and RWS) have had their responsible gambling efforts recognised. Y

et, we note a couple of points for improvement:-
(i) proportion of independent non-executive directors ought to return to ≥60%; and
(ii) more women directors could be appointed to its BOD.

We reduce our ESG 2.0 score for GENT to 52/100 from 59/100, the former based on disclosures in its latest reports.

TP: RM

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/412916.pdf

[winston]

vested

Genting posts first quarterly loss in two years, declares lower dividend

By Justin Lim

Reported its first quarterly loss in two years on higher finance costs and share of losses in joint ventures and associates.

The net loss of RM169.39 million for the fourth quarter Dec 31, 2024 (4QFY2024) compares with a net profit of RM150.99 million a year earlier.

Quarterly revenue dropped 5.3% to RM6.88 billion from RM7.27 billion in 4QFY2023, mainly due to reduced contributions from the leisure and hospitality division.

Genting's finance cost in the quarter rose 35.1% year-on-year to RM513.36 million from RM379.92 million.

For the full financial year, Genting posted a net profit of RM882.95 million, a 4.96% decrease from RM929.20 million in FY2023, despite revenue rising 2.21% to RM27.72 billion from RM27.12 billion.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/746169

[winston]

vested

Will wait until the odds improve

Downgrade to HOLD and SOTP-TP to MYR3.98 (-11%)

Results underperformed due to a weak GENM and RWLV.

Thus, we cut FY25E/FY26E earnings estimates by 34%/30%.

Rolling forward our valuation base year to end-FY25E, we cut our SOTP-based TP to MYR3.98 from MYR4.48.

With <10% upside, we cut GENT to HOLD from BUY.

We understand that dividends were cut to prepare to expand but fear that investors will not take it kindly.

Key catalyst would be 20%-owned TauRx obtaining regulatory approval for its Alzheimer’s combatting drug.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/440845.pdf

[winston]

vested

Tourism revival a boon for Genting

Source: The Star

https://www.thestar.com.my/business/bus ... or-genting