GENTING MALAYSIA 5 YEARS FINANCIAL DATA

LAST 5 YEARS ANNUAL RESULTS

Fiscal year is January-December. All values MYR Millions. 

2021

 2020

 2019

 2018

 2017

 5-year trend 

INCOME STATEMENT

 Sales/Revenue

 4,157

 4,529

 0,407

 9,928

 9,330 

 Gross Income

 155

 (101)

 2,495

 2,662

 2,195 

 SG&A Expense

711

706

972

852

962 

 EBIT

(556)

(805)

1,522

1,811

 -

 Interest Expense

382

332

332

156

115 

 Pretax Income

(964)

 (1,852)

1,521

(4)

1,320

CASH FLOW STATEMENT

Net Income before Extraordinaries

(1,148)

(2,138)

 1,489

(4)

1,320 

 Funds from Operations

68

 (337)

2,161

 2,465

 1,997 

  Net Operating Cash Flow

35

(850)

2,208

2,488

2,062 

 Capital Expenditures

(876)

(1,079)

(2,521)

(1,854)

(2,659) 

 Free Cash Flow

(830)

(1,920)

(310)

634

(597)

 Free Cash Flow Yield -8.05% 

Cash Dividends Paid - Total 

(480) 

(1,130) 

(1,074) 

(1,075)

 (991)

 Net Financing Cash Flow

2,747

(1,778)

(988)

1,502

1,679

BALANCE SHEET

Cash & Short Term Investments

4,641

2,845

7,306

8,508

6,196 

ST Debt & Current Portion LT Debt

490

463

1,615

478

384 

Long-Term Debt

13,297

9,775

9,263

9,283

6,591 

 Total Current Assets

5,526

 3,965

 8,063

 9,339

7,059

 Total Current Liabilities

3,046

2,978

4,727

3,383

3,253

 Current Ratio

1.81

1.33

1.71

2.76

2.17

 Quick Ratio

1.77

1.29

1.68

2.73

2.14

 Cash Ratio

1.52

0.96

1.55

2.51

1.90

LAST 5 QTRS RESULTS

Fiscal year is January-December. All values MYR Millions.

30-Sep-2022

30-Jun-2022

31-Mar-2022

31-Dec-2021

30-Sep-2021

5-qtr trend 

INCOME STATEMENT

Sales/Revenue

2,271

2,176

1,721

1,889

 826 

ttm-Revenue 8,057

Gross Income

 535

 543

328

453

(66) 

SG&A Expense

303

318

287

242

243 

 Interest Expense

142

135

170

104

95 

 Pretax Income

102

93

(67)

219

(348) 

ttm-PBT  347

CASH FLOW STATEMENT

Fiscal year is January-December. All values MYR Thousands.

 Net Income before Extraordinaries

95,672.0

50,620.0

(116,072.0)

162,226.0

 (379,215.0) 

 Funds from Operations

394,910.0

472,556.0

192,591.0

580,900.0

(165,520.0) 

 Net Operating Cash Flow

636,401.0

 526,595.0

101,251.0

813,439.0

(93,035.0) 

 Capital Expenditures

(184,111.0)

(116,436.0)

 (137,682.0)

(207,040.0)

 (247,623.0) 

 Free Cash Flow

452,290.0

410,159.0

(36,431.0)

617,699.0

 (340,658.0) 

 Cash Dividends Paid - Total

 (339,913.0)

-

(508,787.0)

55.0

 -

 Net Investing Cash Flow

(201,307.0)

(177,975.0)

 (126,141.0)

 (669,399.0)

(272,969.0) 

PROFILE SUMMARY

Average Growth Rates 

Genting Malaysia Bhd 

Past Five Years Ending 12/31/2021 (Fiscal Year) 

Revenue -11.09%

 Net Income -36.33%

 Earnings Per Share -36.41% 

Capital Spending -13.41%

 Gross Margin +31.42%

 Cash Flow +7.81% 

 KEY STOCK DATA 

P/E Ratio (TTM) 317.86(12/16/22) 

EPS (TTM) RM0.01 

Market Cap RM15.09 B 

Shares Outstanding N/A 

Public Float 2.69 B 

Yield 4715 is not currently paying a regular dividend. 

Latest Dividend RM0.0599999987(09/29/20) 

Ex-Dividend Date 09/10/20 ? 

SHORT INTEREST () 

N/A ? 

STOCK MONEY FLOW 

N/A

Genting likely to still work on terminated theme park

December 4, 2018, Tuesday

By Sharon Kong, sharonkong@theborneopost.com



AffinHwang Capital believes that Genting Malaysia will still work on the outdoor theme park, although management did not provide any colour on its plan for the outdoor theme park due to the impending law suit against Fox and Disney.

KUCHING: Genting Malaysia Bhd (Genting Malaysia) will likely still work on the recently terminated Disney-Fox theme park, analysts project, despite the management not providing any details on the group’s plan.

Affin Hwang Investment Bank Bhd (AffinHwang Capital) believed that Genting Malaysia will still work on the outdoor theme park, although management did not provide any colour on its plan for the outdoor theme park due to the impending law suit against Fox and Disney.

However, AffinHwang Capital projected that the opening date is likely to be delayed beyond the planned first half of 2019 (1H19).

“As such we have lowered our visitation rate forecast, with the assumption that an outdoor theme park will open its doors in 2020,” the research firm said.

“In our view, even without a branded theme park, visitation growth is still sustainable, albeit not as strong as previously forecasted.

“As an indication, prior to the refurbishment, the ‘old’ theme park managed to attract circa two million to 2.5 million visitors a year.

“Overall visitation for the first nine months of 2018 (9M18) is up 14 per cent year on year (y-o-y), even without the presence of the outdoor theme park.”

Meanwhile, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) highlighted that since the Budget 2019 announcement in early November, the share price of Genting Malaysia had tanked 37 per cent and it is likely to slide further today as the RM1.83 billion impairment is negative for sentiment.

According to Kenanga Research, the fall in share prices started when the casino operator was slapped with 10 per cent hike in casino duties during the announcement of Budget 2019, then the news of unexpected termination of Twentieth Fox Theme Park last week, which pushed the share price to multi-year lows.

“Although the impairment is one-off, we believe this will impact the already fragile sentiment further,” the research arm said.

AffinHwang Capital noted that management did not provide any guidance on earnings before interest, tax, depreciation and amortisation (EBITDA) margins after the upcoming gaming tax hike, but did allude that current 9M18 margins of 35 per cent are unsustainable.

“Genting Malaysia will likely have to undergo a cost rationalisation program to lower its costs, while seeking a balance between margins and volume,” the research firm further noted.

“Thus, we are lowering our margin assumptions for 2019-2020E to 28 per cent (from 32 per cent), as we believe Genting Malaysia will need to sacrifice margins to remain competitive in the VIP segment. The government has raised the gaming tax on net wins to 35 per cent (from 25 per cent) from January 1, 2019.”



http://www.theborneopost.com/2018/12/04/genting-likely-to-still-work-on-terminated-theme-park/

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

Cash Hoard – Boon Or Bane For Shareholders

EDUCATION | 16 MARCH 2010

Cash Hoard – Boon Or Bane For Shareholders

By Ernest Lim 

Imagine if you have S$100m in your bank account, what joys and problems would you face? I believe some of the joys would entail sacking your boss, living it extravagantly but problems would include the deployment of cash, as well as, fearing for your life if people are aware of your immense wealth.

If the above situation happens to companies with large cash holdings, the management would also face similar problems, especially on the issue of effective cash deployment. So for companies with a large cash hoard, is it a boon or a bane? Let’s delve into the pros and cons of maintaining a substantial cash hoard.

Advantages

Reflective of a company with strong business performance

One of the advantages is that a large cash hoard signals that the company seems to accumulate cash faster than it can deploy (assuming that the company is effectively deploying its cash but it is still accumulating).

Furthermore, it is also reflective of a good business performance as cash is derived from profitable operations.

Buffer against bad times

Cash can be used as a buffer against bad times or mistimed acquisitions. For example, during the recession in 2008/09, companies with large amounts of debt and little cash face refinancing difficulties and some even have problems paying off the loans when they are due. Ferrochina, ex Singapore listed firm in the manufacturing sector, is a case in point.

Moreover, cash serves as a safety net against unpredictable events. Companies which carry out acquisitions, joint ventures, or maiden expansions into new markets or geographies are likely to face their fair share of failures and difficulties. Some business ventures may not reach their desired results and may run into temporary losses. Cash can be used to cover the losses in such situations.

Business facilitator

Companies with cash holdings are also likely to be able to get favourable credit terms with suppliers and banks. This is apparent as suppliers and banks have to access the credit risk of the companies which they are doing business with and companies with a considerable amount of cash holdings would allay part of their credit concerns. This would aid in the business operations of the companies.

Flexibility for future growth

Cash also provides management with a myriad of options for future growth. For example, management can decide on the following options

• Look out for attractive acquisition targets either to expand horizontally or vertically along the value chain.

• Carry out capital expenditure such as to acquire land for future purpose, or expand their production capacity through buying more machines etc.

• Invest in listed companies purely for investment purposes.

Disadvantages

Dearth of attractive investment opportunities

One of the most obvious reasons for a large cash hoard is that management has exhausted attractive investment opportunities at the moment and is keeping cash for future opportunities whenever that may be. This does not benefit shareholders as holding substantial cash incurs an opportunity cost and also drag down the return generated by the companies. Besides, shareholders prefer companies to return cash or carry out share buybacks if there are no attractive investment opportunities by the companies.

Lack of long term planning

Some companies may not have the practice of planning for the long term. Thus, as they do not have a concrete idea of their cash requirements over the next three to five years, they would prefer to hold cash as this provide them with flexibility. Nonetheless, it is generally non ideal to invest in companies which do not execute long term planning, as “failure to plan means planning to fail”.

Agency costs

With substantial cash in the companies’ coffers, management may be tempted to use these funds to build their own empire by spending on non synergistic acquisitions and loss making projects, so as to boost their power, reputation and prestige.

Possibility of incurring suspicion and indignation from shareholders

If the cash hoard is increasing and management does not have concrete plans on the use of such funds, this may incur the suspicion on the authenticity of actual cash owned by the companies. For example, Oriental Century, a Singapore listed firm in the education sector, has a large amount of cash in its books. However, it is subsequently revealed that its Chief Executive Officer has allegedly inflated the cash holdings.

Another company, China Hongxing, a Singapore listed firm in the sports shoe and apparel sector, has been incurring the indignation of shareholders for more than a year by sitting on a large cash hoard, amounting to RMB3b at Dec 09, up from RMB1.9b at Dec 08. The collapse in its share price from the high of S$1.45 in Oct 07 to a low of S$0.055 in Mar 09 was due in part to investors’ angst and displeasure in China Hongxing management of cash. However, China Hongxing management has recently unveiled plans on how it would be deploying its cash.

Conclusion – evaluate against the overall context

To determine whether having a large cash hoard is beneficial to shareholders, shareholders have to evaluate against the following criteria:

• Companies’ existing and future incoming cash flows;

• Companies existing and future cash flow requirements (i.e. outflows);

• Stage of business cycles;

• Existing loan and interest repayments.

Thus, if the companies have concise plans to deploy their cash, either to satisfy outstanding loan repayments, or for synergistic acquisition purposes, or for capital expenditure in view of the recovery in the business cycles, then the cash hoard is a boon as it creates shareholder value.

Conversely, if management has no concrete plans to deploy the cash or to deploy them in reckless fashion, then, the cash hoard is a bane as it destroys shareholder value.

Once again, investors have to put on their thinking hats and do some work to reach a decision on whether the cash hoard is a boon or a bane for shareholders.

Ernest Lim currently works as an assistant treasury and investment manager. Prior to this role, he was with Legacy Capital Group Pte Ltd, a boutique asset management and private equity firm, as an investment manager since 2006. He received a Bachelor of Accountancy (Honours) from Nanyang Technological University in 2005. He is a Chartered Financial Analyst, as well as, a Certified Public Accountant Singapore. He is currently taking a short break before embarking on a new role.

http://www.sharesinv.com/articles/2010/03/16/cash-hoard-boon-bane-sharesholders/