Genting Malaysia Berhad (GENM)

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		2,315,836		347,145		6.13		-
25-Aug-11		31-Dec-11		2	30-Jun-11		1,896,025		313,753		5.54		-
26-May-11		31-Dec-11		1	31-Mar-11		1,950,580		417,698		7.37		-
23-Feb-11		31-Dec-10		4	31-Dec-10		1,558,525		362,125		6.39		-

ttm-EPS  25.43 sen

Price $ 3.86

Trailing PE 15.2x

	High   Low Prices 1 Month 3.910   (16-Nov-11) 3.620   (02-Nov-11)   Prices 3 Months 3.910   (16-Nov-11) 3.010   (26-Sep-11) Prices 12 Months 3.930   (07-Jul-11) 3.010   (26-Sep-11) Volume 12 Months 227,765   (31-Mar-11) 6,802   (22-Apr-11)

Selected Bursa counters 2 (COASTAL, DLady, GENM, Latexx, MBB, UMW)

Genting M'sia raised to ‘buy’ at Maybank

Genting Malaysia Bhd, a casino and hotel operator, was raised to “buy” from “sell” at Maybank Investment Bank Bhd to reflect its resilient operations and growth prospects.

The share price estimate was increased to RM3.67 from RM2.90 , Wong Chew Hann, an analyst at Maybank, wrote in a report today. - Bloomberg

Read more: Genting M'sia raised to ‘buy’ at Maybank http://www.btimes.com.my/Current_News/BTIMES/articles/20110224095917/Article/index_html#ixzz1ErtyFuhU

Genting expediting share buyback

Genting expediting share buyback


Written by Yong Min Wei
Thursday, 10 February 2011 14:25

KUALA LUMPUR: Genting Malaysia Bhd appears to be expediting its share buy back activities while at the same time committing fresh investment into gaming assets in the US and UK.

As at Feb 8, 2011, total Genting shares retained in the treasury account amounted to 252.95 million shares, which is worth RM870.2 million based on GenM’s closing price of RM3.44 yesterday. The number of treasury shares has risen by 21.5% from 208.2 million as at May 31, 2010.

Genting shares retained in the treasury account currently represented about 4.3% of the group’s total issued shares of 5.92 billion shares.

Note that in a filing with Bursa Malaysia on Jan 26, the group had said it “intends to purchase up to a further 340.86 million of its shares (representing approximately another 5.76% of the issued and paid-up share capital) within the next five months.” As at Jan 26, Genting had 4.24% of its shares in the treasury account.
Such further purchase is expected to cost the group at least another RM1.17 billion, assuming if Genting’s shares doesn’t fall from its current level, and nudge its total treasury shares to the permitted 10% level.

An artist's impression of the Aqueduct Racino in New York.

As per Bursa’s listing requirement, a public listed entity generally is not permitted to own shares or hold any of its shares as treasury shares if this results in the aggregate of the shares purchased or held exceeded 10% of its issued and paid-up capital.


“Share buybacks can enhance the returns per share of a company. It will be better if the shares are purchased when they are undervalued,” said a market observer, explaining that such moves theoretically favour shareholders as earnings and dividends are split among fewer shares.

An analyst familiar with Genting believes that the group will continue to buy back shares in the weeks to come, even if the stock looks firm to potentially test its 52-week high of RM3.72, adding that the group has sufficient cash flow to purchase more than 300 million of its shares within five months.

He said Genting’s decision to buy back shares also enables the group to earn a stronger return on excess cash. He noted Genting’s 30-year contract to redevelop the Aqueduct Racetrack in Ozone Park, New York, has made the group “extremely attractive.”

“Genting has been comfortable and actively buying back several tranches (of its own shares) at RM3.20 to RM3.30 levels. With close to RM900 million worth of treasury shares, it could also keep a portion for strategic choices, such as cancelling it or distributing it to shareholders,” he said while not discounting Genting declaring interim dividend payment in the first half of FY2011 ending Dec 31.

Genting’s net profit for 3QFY10 ended Sept 30 dipped 6.4% to RM336.41 million from RM359.45 million a year ago on the back of a lower revenue of RM1.2 billion versus RM1.34 billion. It posted basic earnings per share of 5.92 sen in 3QFY10 while net assets per share stood at RM1.96 as at Sept 30.

Shares in Genting  yesterday added four sen to close at RM3.44 with turnover of 9.82 million units. The counter had posted a 52-week high of RM3.72 on Sept 21, 2010 and a low of RM2.46 on July 2, 2010.
Of the 25 stockbroking firms polled by Bloomberg that were covering Genting, there were 11 “buy” recommendations consensus target price of RM3.65. Currently, the stock is trading at a consensus forward price-to-earnings ratio of 15.22 times.


http://www.theedgemalaysia.com/in-the-financial-daily/181320-genting-expediting-share-buyback.html

Genting Malaysia Berhad (GENM)

Date announced 25/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010

STOCK GENM (Resorts) C0DE  4715 

Price $ 3.38 Curr. ttm-PE 15.12 Curr. DY 2.16%
LFY Div 7.30 DPO ratio 31%
ROE 11.4% PBT Margin 34.6% PAT Margin 28.0%

Rec. qRev 1202916 q-q % chg -2% y-y% chq -10%
Rec qPbt 416262 q-q % chg 1% y-y% chq -12%
Rec. qEps 5.92 q-q % chg 10% y-y% chq -6%
ttm-Eps 22.35 q-q % chg -2% y-y% chq 120%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 13.00 Avg. L PE 11.00
Forecast High Pr 3.71 Forecast Low Pr 2.49 Recent Severe Low Pr 2.49
Current price is at Upper 1/3 of valuation zone.

RISK: Upside 27% Downside 73%
One Year Appreciation Potential 2% Avg. yield 3%
Avg. Total Annual Potential Return (over next 5 years) 5%

CPE/SPE 1.26 P/NTA 1.72 NTA 1.96 SPE 12.00 Rational Pr 2.68



Decision:
Already Owned: Buy, Hold, Sell, Filed; Review (future acq): Filed; Discard: Filed.
Guide: Valuation zones - Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr


Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 3.46
(Figures in Malaysian Ringgits)
1 Week -1.1% 13 Weeks -3.1%
4 Weeks 12.0% 52 Weeks 18.5%

Genting Malaysia Berhad Key Data:
Ticker: RESORTS Country: MALAYSIA
Exchanges: KUL Major Industry: Miscellaneous
Sub Industry: Hotel & Motel Chains

2009 Sales 4,991,700,000
(Year Ending Jan 2010).
Employees: 13,700
Currency: Malaysian Ringgits Market Cap: 20,447,107,522
Fiscal Yr Ends: December Shares Outstanding: 5,909,568,648
Share Type: Common Closely Held Shares: 2,670,000


Day's Range: 3.37 - 3.40
52wk Range: 2.46 - 3.72
Volume: 4,064,100
Avg Vol (3m): 8,538,920

Genting Malaysia Berhad (GENM)

Date announced 26/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK GENM (Resorts)
C0DE  4715 

Price $ 3.5 Curr. ttm-PE 15.40 Curr. DY 2.09%
LFY Div 7.30 DPO ratio 31%
ROE 12.8% PBT Margin 33.8% PAT Margin 24.9%

Rec. qRev 1226492 q-q % chg -9% y-y% chq 2%
Rec qPbt 414130 q-q % chg 4% y-y% chq -6%
Rec. qEps 5.36 q-q % chg 12% y-y% chq -7%
ttm-Eps 22.73 q-q % chg -2% y-y% chq 132%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 13.00 Avg. L PE 11.00
Forecast High Pr 3.77 Forecast Low Pr 2.49 Recent Severe Low Pr 2.49
Current price is at Upper 1/3 of valuation zone.

RISK: Upside 21% Downside 79%
One Year Appreciation Potential 2% Avg. yield 3%
Avg. Total Annual Potential Return (over next 5 years) 4%

CPE/SPE 1.28 P/NTA 1.98 NTA 1.77 SPE 12.00 Rational Pr 2.73


Decision:
Already Owned: Buy, Hold, Sell, Filed; Review (future acq): Filed; Discard: Filed.
Guide: Valuation zones - Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

Genting pays New York US$380m for parlor

Genting pays New York US$380m for parlor
Published: 2010/09/28

Genting Malaysia Bhd paid New York state US$380 million to develop an electronic slot machine parlor at New York City’s Aqueduct Racetrack, US$80 million more than the minimum specified by the state.

The payment by the Kuala Lumpur, Malaysia-based company arrived five days before the due date. New York state plans to sell US$250 million of bonds backed by its personal income tax to help finance the project, said Erik Kriss, a spokesman for the Budget Division.

“After almost a decade of delay, this project is finally becoming a reality and all New Yorkers will benefit,” Governor David Paterson said in a statement. The payment exceeded the US$300 million assumed by lawmakers in the state budget, which closed a US$9.2 billion gap. Similar assumptions in previous years were inaccurate.

The state expects the video-lottery machines will produce more than US$279 million of revenue annually after paying gambling prizes and other expenses, according to Jennifer Givner, a spokeswoman for the New York Lottery, which handled bidding for the project.

About 1,600 machines are to be installed within six months, followed within six months by another 2,925 terminals, a 2,100- space parking garage and a new pedestrian bridge to the Aqueduct subway station, according to the recommendation by the Lottery. Later, Genting will build a new covered entrance to the race track, which is in Queens.

The payment came almost two weeks after Genting’s stock rose to a two-year high in Kuala Lumpur when the contract was approved. -- Bloomberg

Read more: Genting pays New York US$380m for parlor http://www.btimes.com.my/Current_News/BTIMES/articles/20100928084600/Article/index_html#ixzz10pQtp846

Genting posts record 2Q profit, thanks to S’pore

Genting posts record 2Q profit, thanks to S’pore

Written by Max Koh
Friday, 27 August 2010 13:59

KUALA LUMPUR: Lady Luck is smiling on Genting Bhd.

The group posted its highest quarterly pre-tax profit ever of RM1.59 billion for the second quarter ended June 30, 2010 (2QFY10), up 179% from RM570.45 million a year earlier, boosted by the newly opened Singapore operations.

Its net profit jumped 244.6% to RM739.17 million for the quarter, from RM214.49 million a year earlier. Revenue doubled to RM4.09 billion from RM2.1 billion, while earnings per share improved to 20 sen from 5.8 sen. It also declared a dividend of 3.3 sen per share for 1H10.

Genting said the increase in revenue and profitability came mainly from its leisure and hospitality division with the commencement of the Resorts World Sentosa operations in Singapore.

Within the leisure and hospitality division, its Singapore operations contributed RM2.03 billion in revenue, compared with RM1.2 billion from Malaysia, and RM250 million from UK and others. Another RM607.6 million in revenue came from its power, plantation, property and investment divisions.

The Singapore operations contributed a pre-tax profit of RM1.19 billion for the quarter, compared with RM592.3 million from Malaysia. This gave the Singapore operations a higher pre-tax profit margin of 58.6% versus 49.3% for Malaysia.

“The improved revenue from Resorts World Genting is mainly due to better luck factor in the premium players business. The UK casino business in 2QFY10 also benefited from an increase in business volume. However, the weaker pound translated to lower casino revenue in ringgit terms,” it said in a filing with Bursa Malaysia.

The group’s plantation arm, Genting Plantations Bhd, also saw higher revenue and profit due to higher palm products prices and increased fresh fruit bunch (FFB) production.

However, the group’s power division, Genting Energy Ltd, recorded lower revenue due to lower generation of electricity by the Meizhou Wan power plant in China.

“The oil & gas division also posted lower revenue and profit, as a result of lower share of entitlement in China despite higher average oil prices achieved, as well as higher expenses incurred. The share of results in jointly controlled entities and associates increased in 2Q10, as the results in 2Q09 was impacted by the share of loss in a jointly controlled entity in Genting Singapore Plc arising from lower property valuation of a property in London,” Genting said.

For the first half ended June 30, 2010, the group posted RM971.6 million in net profit on the back of RM7.2 billion in revenue, due to higher contribution from the leisure and hospitality, plantation and property divisions.

The period also saw a net impairment loss of RM1.3 billion and net dilution gain of RM436.3 million, which arose from the company’s shareholding in Genting Singapore, when the remaining S$450 million convertible bonds were fully converted into new ordinary shares of Genting Singapore in 1H10.

“The net fair value gain on derivative financial instruments of RM67.9 million was mainly in respect of Genting Singapore’s fair value gain on derivative financial instruments from the valuation of the conversion option embedded in the convertible bonds,” it said.

For the rest of the year, the group said it was cautiously optimistic as regional competition continued to impact its performance, with better contribution from its Singapore operations.

“With the opening of Marina Bay Sands, Resorts World Sentosa’s business showed resilience and its business model displayed impressive strength.

“It would continue to make improvements to its attractions, facilities and infrastructure to meet the expectations of its valued guests,” Genting said, adding that construction of its West Zone had started and was expected to commence operations next year.

On Wednesday, CIMB Research maintained its outperform call on Genting with the target price raised to RM10.90 from RM9.40. It also raised its FY10-12 earnings per share (EPS) for Genting by 27%-32%.

“The past two months have seen a slew of activities within the Genting group. While the UK asset transfer is largely neutral for the parent Genting Bhd, Genting Malaysia’s winning bid for the Aqueduct racino and our significant earnings upgrade for Genting Singapore following a stellar 2Q10 for Resorts World Sentosa are positive,” it said.

While remaining neutral on Genting Malaysia, CIMB said it was bullish on Genting Singapore due to its strong results.

“The key winner to emerge from these developments is Genting Singapore. The sale of its UK asset will allow management to concentrate on its flagship property, Resorts World Sentosa. More importantly, its strong 2QFY10 results thumped all expectations and stamped Genting Singapore’s mark as Singapore’s gaming market leader in 2Q,” it added.

Genting gained one sen to close at RM9 yesterday with 6.2 million shares traded.


This article appeared in The Edge Financial Daily, August 27 2010.

Historical Investment Data of Genting Malaysia GENM (7.6.2010)

Historical Investment Data of  Genting Malaysia GENM (7.6.2010)
http://spreadsheets.google.com/pub?key=tnwEh7I1JjIN3EviG6ZylQg&output=html

A quick look at Genting Malaysia GENM (27.5.2010)

A quick look at Genting Malaysia GENM (27.5.2010)
http://spreadsheets.google.com/pub?key=t6p93zBmPtzub4oIFBVLGCg&output=html

Benjamin Graham's Checklist for GENM (28.5.2010)
http://spreadsheets.google.com/pub?key=tAN3tcyRLcCj8SFLWNuMeCA&output=html

A quick look at Genting Malaysia GENM (2.5.2010)

Genting Malaysia Berhad Company

Business Description:
Genting Malaysia Berhad Formerly known as Resorts World Berhad. The Group's principal activities are leisure and hospitality business which comprises hotel, gaming, cruise and cruise related operations, entertainment businesses, golf resorts, tours and travel related services and other support services. Other activities include property development and management provision of training, offshore financing, utilities and cable car management services, proprietary timeshare ownership scheme, selling and letting of apartment and investment holding. The Group operates in Malaysia and Asia Pacific.

Wright Quality Rating: AAA1 Rating Explanations







A quick look at GENM (2.5.2010)
http://spreadsheets.google.com/pub?key=tp5o0Wh0t3M0rC_NfN1I6Ag&output=html

Comment:
GENM is a great company by my criteria.  GENM earned MR 1.32 billion and paid 'miserable' dividend of MR 300 million last year.  It carries cash equivalent to MR 5.25 billion.  To date the management has not proven itself to be able to employ this cash productively in the new ventures they had undertaken in recent years.  Why not return this cash to the shareholders?  Let's look at what Buffett wrote on GREAT companies.

The Three Gs of Buffett: Great, Good and Gruesome

Here are some golden words from Buffett.


1.  On 'Great' businesses, Buffett says, "Long-term competitive advantage in a stable industry is what we seek in a business.

• If that comes with rapid organic growth, great. 
• But even without organic growth, such a business is rewarding. 
• We will simply take the lush earnings of the business and use them to buy similar businesses elsewhere. 
• There's no rule that you have to invest money where you've earned it. 
• Indeed, it's often a mistake to do so: Truly great businesses, earning huge returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at high rates of return."

----
OSK Research: Genting Malaysia to trade sideways
Written by OSK Research
Friday, 30 April 2010 10:07




KUALA LUMPUR: OSK Research says Genting Malaysia’s shares, which were actively traded on Thursday, April 29, could continue trending sideways.


The research house said on Friday, April 30 that the stock has been trending sideways for many months and a trading range has been detected. It is ranging from the RM2.68 level to the RM3.00 level.


"That means the stock is expected to until one of these two levels is violated. In other words, yesterday’s active trading in the stock’s shares does not signal anything significant," it said.


OSK Research said the stock’s longer-term outlook will remain a sideways bias until it has violated one of these two critical levels.


Within the trading band, look for an immediate support at the RM2.75 level and an initial resistance at the RM2.88 level

From: The Edge Malaysia

A quick look at GENM (Genting Malaysia)

Genting Malaysia Berhad Company

Business Description:
Genting Malaysia Berhad Formerly known as Resorts World Berhad. The Group's principal activities are leisure and hospitality business which comprises hotel, gaming, cruise and cruise related operations, entertainment businesses, golf resorts, tours and travel related services and other support services. Other activities include property development and management provision of training, offshore financing, utilities and cable car management services, proprietary timeshare ownership scheme, selling and letting of apartment and investment holding. The Group operates in Malaysia and Asia Pacific.
Wright Quality Rating: AAA1 Rating Explanations







A quick look at GENM
http://spreadsheets.google.com/pub?key=tBTCgSu7ESHENiACNLUujkg&output=html

AAA1 Wright Quality Rating.  With this company generating so much FCF and a lack-lustre DPO of 22.6%,  the growth of GENM is rather anaemic the last few years.  It is hoarding cash to the tune of RM 0.92 per share.  At RM 2.79, its PE is 12 and DY is 1.88%.

Also read:

Cash Hoard – Boon Or Bane For Shareholders