Genting Malaysia

[winston]

vested

Are investors cutting losses on Genting Malaysia?

By Emir Zainul

Net profit of RM251.28 million for the financial year ended Dec 31, 2024 (FY2024), down 42.5% year on year from RM436.79 million.

Resorts World New York City, which could require an investment of US$5 billion (RM22.32 billion) should Genting Malaysia secure a downstate casino licence.

A potential move into Thailand’s gaming market could demand another US$3 billion in capital expenditure.

Source: The Edge Malaysia

https://theedgemalaysia.com/node/749906

[winston]

Genting Malaysia takes full control of Empire Resorts from Lim family in US$41 mil deal

By Justin Lim

Kien Huat Realty III will assign a US$39.7 million debt — including accrued interest — that Empire Resorts owes to Genting Malaysia.

Empire Resorts owns and operates integrated casino Resorts World Catskills and video lottery terminal Resorts World Hudson Valley, along with Resorts World Bet, a mobile sports betting platform.

Genting Malaysia first bought a 46% stake in Empire Resorts, which has been loss-making for over two decades, from Kien Huat Realty III for US$128 million, cash, in 2019. Genting Malaysia's investments in Empire Resorts prior to the latest acquisition totalled US$724.4 million.

Genting Malaysia's total borrowings will increase to RM13.5 billion post-acquisition, up 10.44% from RM12.2 billion as at end-December 2024. Hence, Genting Malaysia's gearing will also increase to 1.13 times from 1.03 times.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/753817

[winston]

vested

Bringing a painful chapter to a close

Trim SOTP-TP to MYR2.08 but U/G to BUY

GENM will acquire the remaining 10% economic interest in loss generating Empire Resorts (Empire) (Fig. 1).

Our FY25E-FY27E earnings are trimmed 2-4% on the higher economic interest.

We cut our SOTP-TP to MYR2.08 from MYR2.41 as we impute higher debt and capex.

We do not view this proposal positively but hope that this will be the last value destroying related party transaction (RPT).

With >20% total returns to our TP, we upgrade GENM to BUY from HOLD.

Key near term catalysts are:
(i) resolution to the USD600m lawsuit relating to Resorts World Bimini soon; and
(ii) Resorts World New York winning a full casino license by year end.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/454307.pdf

[winston]

vested

Empire Resorts deal ‘pricey’, to drag Genting Malaysia’s earnings — analysts

By Izzul Ikram

The price tag represents an enterprise value to earnings before interest, taxes, depreciation, and amortisation multiple of 72.7 times, compared with US-listed peers’ average of 10 times.

“Between FY2020 and FY2024, Genting Malaysia has recognised total associated losses of RM160 million to RM280 million a year, which we attribute the bulk of this to Empire Resorts.

“We project that it would remain a loss-making operation of Genting Malaysia due to the cannibalisation of Resorts World Catskills following the opening of Resorts World Hudson Valley in December 2022”.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/753927

[winston]

vested

Genting Malaysia raises eyebrows with RPT again

By Kathy Fong

Empire Resorts Inc was on the brink of filing for bankruptcy in 2019.

Empire Resorts is still bleeding red ink, six years after Genting Malaysia bought a 49% stake in it.

Net borrowings have more than doubled in five years to RM8.6 billion at end-2024 from RM3.52 billion at end-2019.

To date, Genting Malaysia has invested some US$765 million, or RM1.91 billion (based on the current exchange rate of RM4.28), in Empire Resorts — more than 10% of its shareholder equity of RM11 billion.

Investment analysts expect Empire Resorts to be loss-making for the next three years at least. It incurred net losses of US$53.1 million in FY2024 and US$57 million in FY2023.

It is worth noting that in 2018,Genting Malaysia impaired RM1.83 billion for its investment in the promissory notes issued by Mashpee Wampanoag Tribe.

Source: The Edge Malaysia

https://theedgemalaysia.com/node/754901