Genting Bhd - Return on Retained Earnings

Genting Bhd
Year		DPS		EPS		Retained EPS
2002		2.8		20.7		17.9
2003		3		20.3		17.3
2004		3.2		26.3		23.1
2005		3.7		28.3		24.6
2006		4.5		36.1		31.6
2007		26.8		43.1		16.3
2008		5.4		46		40.6
2009		5.3		31.5		26.2
2010		5.6		80.5		74.9
2011		6		63.7	P	57.7
Total		66.3		396.5		330.2
2002-2011
EPS increase (sen)				43.0
DPO				17%
Return on retained earnings				13%
(Figures are in sens)

Genting Berhad

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		5,143,899		1,086,511		16.16		-
26-May-11		31-Dec-11		1	31-Mar-11		4,889,158		1,446,050		22.25		-
23-Feb-11		31-Dec-10		4	31-Dec-10		4,086,714		806,175		12.57		-
25-Nov-10		31-Dec-10		3	30-Sep-10		3,909,209		1,222,727		20.72		-

ttm-EPS 71.7 sen
Price  $ 10.28
Trailing PE  14.3 x

High		Low
	Prices 1 Month	11.040	(09-Nov-11)	10.000	(24-Nov-11)
	Prices 3 Months	11.040	(09-Nov-11)	8.370	(26-Sep-11)
	Prices 12 Months	11.980	(14-Jan-11)	8.370	(26-Sep-11)
	Volume 12 Months	183,152	(10-Feb-11)	2,729	(27-Dec-10)

Genting Bhd 4Q earnings up 89.6pct to RM465.43m, for FY10 RM2.2b

Genting Bhd 4Q earnings up 89.6pct to RM465.43m, for FY10 RM2.2b
Written by Joseph Chin of theedgemalaysia.com
Wednesday, 23 February 2011 19:17


KUALA LUMPUR: GENTING BHD []’s net profit surged 89.6% to RM465.43 million in the fourth quarter ended Dec 31, 2010 from RM245.4 million a year ago.

It said on Feb 23 revenue rose 76% to RM4.086 billion from RM2.320 billion. Earnings per share were 12.57 sen compared with 6.64 sen while it proposed a final dividend of 4.5 sen compared with 4.20 sen a year ago.

It said the higher revenue was mainly from the leisure and hospitality division with the commencement of operations of Resorts World Sentosa in Singapore, during the first quarter of 2010.

“Revenue from Resorts World Genting in Malaysia increased mainly due to better luck factor in the premium players business. The revenue from the UK casino operations decreased mainly due to poor luck factor and the weaker sterling pound. However, the UK business volume has shown improvement over the previous year’s corresponding quarter,” it said.

Genting said the PLANTATION [] division benefited from higher palm products prices. However, its power division recorded lower revenue due to lower generation of electricity by the Kuala Langat and the Meizhou Wan power plants.

“The higher adjusted EBITDA from the Leisure & Hospitality Division in 4Q2010 was mainly attributable to RWS. RWG’s adjusted EBITDA increased due to higher revenue, whilst the UK casinos’ adjusted EBITDA was affected by lower revenue,” it said.

As for FY10, its earnings rose 110.9% to RM2.202 billion from RM1.044 billion while revenue surged 71% to RM15.194 billion from RM8.893 billion.

Group revenue rose by 71% to record a new high of RM15.19 billion in FY2010 (FY2009: RM8.89 billion), while group profit before tax rose by 74% to post a new high of RM4.39 billion in FY2010 (FY2009: RM2.53 billion).

Group adjusted EBITDA rose by 89% to post a new high of RM7.11 billion in FY2010 (FY2009: RM3.77 billion).

One Year Performance of Selected Stocks in KLSE (3)

Genting Berhad

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

STOCK GENTING C0DE  3182 

Price $ 10.4 Curr. ttm-PE 19.38 Curr. DY 0.69%
LFY Div 7.20 DPO ratio 25%
ROE 13.2% PBT Margin 36.3% PAT Margin 19.6%

Rec. qRev 3909209 q-q % chg -4% y-y% chq 63%
Rec qPbt 1418393 q-q % chg -11% y-y% chq 76%
Rec. qEps 20.72 q-q % chg 4% y-y% chq 106%
ttm-Eps 53.65 q-q % chg 25% y-y% chq 192%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 17.00 Avg. L PE 15.00
Forecast High Pr 11.64 Forecast Low Pr 6.20 Recent Severe Low Pr 6.20
Current price is at Upper 1/3 of valuation zone.

RISK: Upside 23% Downside 77%
One Year Appreciation Potential 2% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 4%

CPE/SPE 1.21 P/NTA 2.57 NTA 4.05 SPE 16.00 Rational Pr 8.58



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): 10.22
(Figures in Malaysian Ringgits)
1 Week 0.6% 13 Weeks -2.7%
4 Weeks 18.7% 52 Weeks 43.5%

Currency: Malaysian Ringgits Market Cap: 37,877,353,780
Fiscal Yr Ends: December Shares Outstanding: 3,706,199,000
Share Type: Ordinary Closely Held Shares: 684,598,840


Day's Range: 10.18 - 10.40
52wk Range: 6.20 - 10.82
Volume: 3,081,400
Avg Vol (3m): 7,254,500

OSK Research maintains Buy on Genting

OSK Research maintains Buy on Genting
Written by The Edge Financial Daily
Monday, 15 November 2010 08:41


KUALA LUMPUR: OSK Research is maintaining its Buy call on GENTING BHD [] but lowered the target price to RM13.81.

The research house said on Monday, Nov 15 the lower TP was after factoring in its recent downward revision in Genting Singapore’s fair value from S$2.65 to S$2.51 and after building in lower than expected sales proceeds of RM425 million from the sale of its Muturi oil & gas deferred consideration rights.

OSK Research said the disposal was a positive move for Genting to focus on gaming operations.

In 2001, the group sold its stake in the Muturi Production Sharing Contract in Indonesia and struck a separate deal that would entitle it to a share of future cash flow from the sale of liquefied natural gas.



However, delays and the risk of future fluctuation in natural gas prices coupled with the group’s intention to focus on its gaming related assets led to it realizing a one-off payment now rather than the rights to future recurring payments, which would have been subjected to the volatility of gas prices.

http://www.theedgemalaysia.com/business-news/177084-osk-research-maintains-buy-on-genting.html

----

Genting up on O&G project rights sale
Published: 2010/11/15


Genting Bhd, a Malaysian casino and power group, rose the most in almost a month in Kuala Lumpur trading after receiving US$136.5 million from selling its rights to future sales of an oil and gas (O&G) project in Indonesia.

The stock climbed 1.6 per cent to RM10.32 at 10.51 am, set for its steepest gain since October 19.

Genting also climbed after its share-price estimate was raised to RM13 from RM10.65 at Credit Suisse Group AG, which said Genting is a “cheaper” exposure to its Singapore unit. - Bloomberg



Read more: Genting up on O&G project rights sale http://www.btimes.com.my/Current_News/BTIMES/articles/20101115113005/Article/index_html#ixzz15LLvlq3J

Genting S'pore net profit down but long-term prospects good

Saturday November 13, 2010

Genting S'pore net profit down but long-term prospects good
By FINTAN NG
fintan@thestar.com.my


PETALING JAYA: Genting Singapore Plc's prospects, like the city-state's gaming industry in general, are still good in the medium to long term, despite the over 52% plunge in the company's net profit to S$187.8mil for the third quarter ended Sept 30 compared with the preceding quarter.

The company's share price dived following the release of the quarterly results on Wednesday with the shares closing down 15 cents to S$2.13 yesterday.

Genting Singapore, a subsidiary of Genting Bhd, operates Resorts World Sentosa, one of two integrated resorts in the city-state, the other being the Marina Bay Sands operated by Sheldon Adelson's Las Vegas Sands Corp.

The company's share price, which has been steadily rising since the beginning of the year, was at its highest ever on Nov 9, when it closed at S$2.35.

The share price and valuation, according to a market sceptic, did not seem to reflect the short-term challenges ahead.

The company has an enterprise value/earnings before interest, taxes, depreciation and amortisation (EV/Ebitda) of 19.42 times and a price-to-earnings ratio of over 32 times.

The short-term challenges, according to analysts, essentially revolved around when junket operations could commence legally and when the industry could reach a level of maturity when growth, like Macau, would be exponential.

These challenges, however, would mean that parent company Genting would miss out on better contributions from the Singaporean operations although several analysts felt that there could be earnings surprises down the road.

"The company's Resorts World Sentosa is only in the first year of operations, so there is definitely more room for growth," an analyst with a local investment bank told StarBizWeek.

She said although the share price might have run a little ahead of valuation, long term the prospects were still good.

HwangDBS Vickers Research Sdn Bhd analyst Yee Mei Hui said even if EV/Ebitda was on the high side, there was a premium based on the fact that the Singaporean market was a duopoly.

"It is also quite clear regulations-wise over the next 10 years, so there's lower risk and the market has yet to see its full potential as in Macao," she added.

Besides which, Yee said, junkets could start as early as the beginning of 2011.

http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7418599&sec=business

Genting to record one-off net gain of RM390m

Saturday November 13, 2010

Genting to record one-off net gain of RM390m

PETALING JAYA: Genting Bhd is expected to record a one-off net gain of about RM390mil after its indirect 95%-owned subsidiary Laila Ltd received a total cash consideration of US$136.5mil.

Genting said in a statement to Bursa Malaysia yesterday that Laila had signed an agreement dated July 2, 2001, to sell Cairns Ltd, which had a 45% interest in the Muturi production-sharing contract (PSC) in Indonesia, to BP Global Investments Ltd (BPGIL).

Laila, which received an initial payment of US$106.8mil, was also entitled to payments of deferred consideration starting in the month in which commercial petroleum production attributable to the contract area and ending with the Muturi PSC termination.

“Laila has on Nov 12 received a total cash consideration of US$136.5mil to release BPGIL from its obligation to make any and all future payments including the deferred consideration, pursuant to an agreement signed with BPGIL on Oct 1, 2010,” Genting said.

“With the release, Laila is able to realise the value of the deferred consideration upfront instead of receiving future monthly payments of deferred consideration that would be subject to changes in commodity price, production and operational risks.”

It said the one-off net gain of about RM390mil would contribute an increase of about 10.6 sen to its earnings per share and net assets per share.

Genting added that none of the directors and/or major shareholders of the company and/or persons connected with them had any direct or indirect interest in the release.

http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7421804&sec=business

Genting Berhad

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

STOCK GENTING
C0DE  3182 

Price $ 10.16 Curr. ttm-PE 23.64 Curr. DY 0.71%
LFY Div 7.20 DPO ratio 25%
ROE 11.5% PBT Margin 39.0% PAT Margin 18.1%

Rec. qRev 4085070 q-q % chg 31% y-y% chq 94%
Rec qPbt 1593130 q-q % chg 696% y-y% chq 179%
Rec. qEps 20.00 q-q % chg 218% y-y% chq 245%
ttm-Eps 42.98 q-q % chg 49% y-y% chq 496%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 17.00 Avg. L PE 15.00
Forecast High Pr 9.33 Forecast Low Pr 6.89 Recent Severe Low Pr 6.89
Current price is at Upper 1/3 of valuation zone.

RISK: Upside -34% Downside 134%
One Year Appreciation Potential -2% Avg. yield 1%
Avg. Total Annual Potential Return (over next 5 years) 0%

CPE/SPE 1.48 P/NTA 2.71 NTA 3.75 SPE 16.00 Rational Pr 6.88


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 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.

A quick look at Genting Berhad (3.5.2010)

Genting Berhad Company

Business Description:
Genting Berhad. The Group's principal activities are operating hotel, gaming and entertainment, tours and travel related services. Other activities include generation and supply of electric power, oil palm plantations, palm oil milling, construction, property development and management, oil and gas exploration, sale of crude oil and investment holding. Operations of the Group are carried out in Malaysia, Asia Pacific, Europe and other countries.

Wright Quality Rating: ACD0 Rating Explanations






A quick look at Genting Berhad (3.5.2010)
http://spreadsheets.google.com/pub?key=tn_N2jnN3rN857OjJ3soAyA&output=html

Genting gains, seen as cheaper option

Genting gains, seen as cheaper option
Published: 2009/09/07


Shares in Genting, Asia’s largest casino operator by market share, were higher as the stock is seen as a cheaper option for exposure to its Singapore casino business than its unit Genting Singapore.

By 0704 GMT, Genting shares have gained 4.6 per cent to RM7.27 a share on volume of 7.8 million shares.

Genting Singapore was up 4.5 per cent at S$1.17.

“The upside in Genting lies in two key angles, 1) the explicit re-rating of Genting Singapore as a subsidiary and 2) the narrowing of the “discount to entry” as a parent (company),” said CLSA in a research note published today.

“The current share price is pricing in a value of S$0.63 per share for Genting Singapore and we thus advocate a buy call on Genting Bhd on the premise that investors are paying around 50 per cent “discount to entry”, said CLSA.

Malaysian gaming stocks are also playing catch-up with their regional peers, which rose sharply last week on reports gaming revenue in Macau, the world’s top gambling market, rose to a new high in August, said a dealer from a local brokerage. -- Reuters

http://www.btimes.com.my/Current_News/BTIMES/articles/20090907170417/Article/index_html

Genting offers cheaper exposure to Singapore IR

Genting offers cheaper exposure to Singapore IR

Tags: Genting RWS Singapore IR

Written by Financial Daily
Wednesday, 05 August 2009 12:11

CIMB Research yesterday maintained an outperform call on GENTING BHD [ GENTING 6.210 -0.070 (-1.115%) ] at RM6.30 with a 19% higher target price, calling it a cheaper alternative for indirect exposure to the “promising” Resorts World at Sentosa (RWS) project.

“We are impressed by the speed of work at RWS. We believe that the odds have increased for Genting Singapore Ltd’s RWS to open ahead of its rival. Our earlier estimates are overly conservative given the integrated resort’s (IR) potential for opening before the year is out,” CIMB said in a note.

CIMB raised its price target for Genting to RM9.40 from RM7.90. This was after updating Genting’s sum-of-parts value with its revised target price for Genting Singapore (GS) and its latest market risk premium assumptions.

“Although GS is the listed vehicle with the direct exposure to RWS, its parent Genting offers a cheaper indirect exposure to the promising project,” CIMB said.

Genting’s price-to-earnings (P/E) and price-to-book (P/BV) valuations are at 40% to 50% discounts to Genting Singapore’s ratings, the brokerage house noted.

Nonetheless, it went on to say that Genting Singapore looked more attractive from a price earnings-to-growth (PEG) perspective, trading at less than one time PEG versus the sector’s average of 2.4 times. This, CIMB said, was “not surprising” as Genting Singapore’s three-year earnings per share (EPS) growth potential is “way higher than 100%” while most of its peers are projected to notch only single-digit growth.

Among potential catalysts for Genting include potential mergers and acquisitions (M&As), more news flow on the progress of works at Sentosa IR, and higher weighting in the market benchmark.

“We believe Genting Bhd should trade close to its sum-of-parts (SOP) valuation given that the group is continuously looking to unlock value via the disposal of its non-core assets. Also, discounts usually evaporate during a bullmarket environment. Note that we also value other conglomerates like SIME DARBY BHD [ SIME 8.310 0.030 (0.362%) ] at their SOPs,” CIMB said.

It now prefers Genting Bhd over Genting Malaysia (previously Resorts) as its top pick in the Malaysian gaming sector, given its renewed enthusiasm on RWS’ prospects.

Nonetheless, Genting Malaysia is still an attractive investment proposition, given its resilient domestic operations and its sizeable RM4.86 billion cash hoard which could mean potential M&As and/or higher dividends, CIMB added.

Genting added 10 sen to close at RM6.40 yesterday while Genting Malaysia shed one sen to RM2.92.


This article appeared in The Edge Financial Daily, August 5, 2009.