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Not sure about the filipino market, but can also hope so.. it's better than RWS who lost its market leadership since 3 quarters back and dwindled in its profits (due to luck)... 2011 report for Genting HK was good and hope it continues..
cruise businesses already reported their earnings and they are great. now is only for the consolidated report with the group..
are u vested?? It's taking up a very small portion of my portfolio hah..
risktaker ( Date: 17-Aug-2012 07:50) Posted:
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Genting Singapore 2Q Net Profit Falls 32% to S$165.5 Million Ebitda Misses
08/10/2012 | 08:23am US/Eastern-- Genting Singapore's second-quarter net profit slumps 32% to S$165.5 million
-- Second-quarter earnings before interest, tax, depreciation and amortization fell 10% to S$311 million
-- Group earnings affected by lower premium-gambler volumes, higher costs from expansion works
(Updates with details and background throughout.)
By Chun Han Wong
SINGAPORE--Genting Singapore PLC's (G13.SG) second-quarter net profit slumped 32% from a year earlier due mainly to lower premium-gambler volume and higher costs from ongoing expansion works at its integrated resort, the gaming company said Friday.
The operator of the Resorts World Sentosa casino resort in Singapore also reported lower-than-expected earnings before interest, tax, depreciation and amortization for the April-June period, reinforcing analysts' prognosis of slowing growth in the city-state's casino market and their views that the group may need to seek overseas opportunities for expansion.
" The global economy looks increasingly unfavorable...we will continue to see similar narrower Ebitda margins as in the current quarter," Genting Singapore said in a statement. But its strong cash position also " presents significant advantage for the group to capitalise on any suitable investment opportunities," it said.
Genting Singapore reported a net profit of 165.5 million Singapore dollars (US$132.8 million) for the three months ended June 30, compared with S$242.9 million.
Second-quarter Ebitda were S$311 million, down 10% from S$345.8 million a year ago. The result was also 17.4% lower than Ebitda of S$376.4 million in the first quarter.
A decline in casino business volumes especially in the premium-player segment weighed on earnings, the company said in a statement. The result also missed the S$373 million average Ebitda estimate of a Dow Jones Newswires poll of five analysts.
Resorts World Sentosa contributed S$313.1 million in Ebitda.
Group revenue for the period fell 3% to S$702.2 million, while gaming revenue from the casino--which opened in February 2010--fell 3.7% to S$562.3 million.
Genting Singapore, a unit of Malaysian gaming group Genting Bhd. (3182.KU), has raised about S$2.3 billion this year by issuing perpetual securities, and analysts believe it is seeking opportunities in markets like Mongolia, Japan and South Korea.
But its most aggressive moves in recent months have come in Australia, where Genting Singapore and sister company Genting Hong Kong Ltd. (S21.SG) have taken a combined 9.9% stake in Echo Entertainment Group Ltd. (> > Echo Entertainment Group Ltd), which owns casinos including The Star in Sydney.
The move sparked talk of a bidding war between Genting and Australian billionaire James Packer, who is also seeking to increase his holdings in Echo.
Board meeting next Friday. Expect results to be released by end this month.
Let's hope RWM performed better than RWS. Other controlled entities performed well. :)
Exited at $0.405 earlier. Low now $0.305
Potential with PE lower than average. Maintain horizon of 2-3months till the interim report in late July / early Aug.
I think can short Genting HK US$ today
Entry: $0.305 to $0.295
Stop-Loss: $0.330
More on my Blog at Alex Trades.
Good luck.
sk888, thanks
They report semi-annually. The next is expected to be around August.
Check its reports and announcements on their website or HKEx website.
Support at USD0.39
Best played as a growth stock
I believe Genting HK was a stock with high growth potential. Although it has beenincorporated since 1993, I believe it is currently in the early stage of a new evolution into a leading land and sea-based gaming and entertainment enterprise. After all the interest in Genting Singapore, it is time Genting HK gets its fair share of attention.
Foray into existing and new gaming markets
Taking on the big boys in Macau
A more ambitious but not unachievable goal is entry into Macau, one of the
largest and most lucrative gaming markets in the world. While the Genting Group
does not yet have a meaningful presence in this territory, where SJM, Wynn
Macau, Galaxy and Sands China are among the well-entrenched casino players,
GenHK has long set eyes on a slice of the pie. To be sure, it is no novice to the
field, given the extensive casino operations of its sister companies such as
Genting Singapore.
As early as 2007, GenHK took the first step into Macau by acquiring a 75%
interest in Macau Land Investment Corporation (MLIC) together with Genting
International. The reason: MLIC owns a piece of land, about 8,100 sq m in area,
which could be developed. However, new developments in the territory are
currently stalled as the government has announced a cap on the number of
gaming tables at 5,500 until 2013 and will not accept any new casino application
during this period.
Appeal of Sri Lanka
GenHK’s subscription for shares in the Union Bank of Colombo in 2010, resulting
in a 5.96% stake, appears to confound investors. Collectively, the Genting Group
holds an effective 26% stake in the bank. Market talk suggested that the move
was a stepping stone for GenHK to be ready for an opening up of legislations in
Sri Lanka for a new gaming market. The island appeals chiefly because it has
recently emerged from a civil war and, based on our conversations with
management, is reminiscent of Malaysia when it was an emerging economy many
years ago.
Taiwan gaming market en route to liberalisation Taiwan is another potential market where legislation to liberalise casino gaming
is underway. GenHK has been operating cruises to Taiwan and we believe it is
part of its efforts to position itself for land-based operations if market
liberalisation were to materialise.
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Ticker: |
GENHK SP |
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Shares Issued (m): |
7,772.2 |
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Market Cap (US$ m): |
3,070.0 |
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3-mth Avg Daily Turnover (US$ m) |
4.9 |
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ST Index: |
2,990.08 |
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Free float (%): |
23.3 |
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Major Shareholders: |
% |
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Lim Kok Thay |
57.5 |
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Resorts World Ltd |
18.4 |
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Key Indicators ROE – annualised (%) |
8.9 |
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Net gearing (x): |
0.09 |
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NTA/shr (US$): |
0.28 |
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Interest cover (x): |
2.0 |
Lim Kok Thay hold 57.5%. He must know something.
Other key developments
Hive of activity at RWM.
In June last year, RWM formally launched the Genting Club. In November, it opened 309 rooms of the 712-room Remington Hotel. The other rooms are scheduled to fully open by 1H12. In December, it threw open the gates of its amusement centre, GameZoo. In the meantime, RWM is building a 112,050-sq-m convention centre with 14 function rooms and four ballrooms. The centre is expected to be completed next year. Additional luxury hotels would also be built and launched in phases over the next two years. This series of expansion should draw more visitors to RWM.
Two new vessels for NCL.
The Norwegian Breakaway and Norwegian Getaway are the two newest ships that would join NCL’s fleet in 1H13 and 1H14, respectively. Together they are expected to expand existing capacity by about 30%. We estimate that this would raise EBITDA to US$677m in FY14F. Vast improvement in gearing. GenHK’s net gearing has improved tremendously from 0.18x in FY10 to only 0.09x in FY11. This was a far cry from the high of 1.8x in FY07. The company’s conscious effort to pare down debt through asset rationalisation over the past five years has yielded positive results.
Share premium reduction to lead to dividend payment?
GenHK has proposed a reduction of its share premium account and to transfer the credit amount to its retained earnings. The credit amount of the share premium account was about US$1.51b and would be used to offset against US$574m of current accumulated losses. The proposed reduction is subject to shareholder approval in the forthcoming AGM. The proposal is a positive sign and could mean that GenHK may be able to pay out dividends in the near future.
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Genting HK- Buy (unchanged) |
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Share price: |
US$0.395 |
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Target price: |
US$0.53 (from US$0.45) |
Turnaround on all fronts Record profit confirms turnaround. Genting Hong Kong (GenHK) reported FY11 revenue of US$515.5m (+28.9% YoY) with a record net profit of US$182.2m (+120.5% YoY). The results met our expectations and were far ahead of consensus.
They confirmed the company’s turnaround on all fronts. Norwegian Cruise Line (NCL) delivered a record EBITDA of US$506.0m. Resorts World Manila (RWM) performed well in its second year of operation with Travellers International posting EBITDA of US$214.4m, more than double last year’s US$102.0m. Reiterate Buy with the target price raised to US$0.53. Asian cruise strategy a success. GenHK has been fine-tuning its Asian cruise strategy and its fleet rationalisation has produced positive results. What came as a pleasant surprise was the 42.6% improvement in gaming revenue as a result of these actions. We believe that the routes to Hong Kong and Taiwan have spawned this increase.
NCL bookings on the rise again. Net yield for NCL inched up by 3% to US$173.4 for FY11. The company will also take delivery of two new vessels in 1H13 and 1H14, which would add about 15% each to its existing capacity. This should lift EBITDA to US$677m in FY14F, based on our forecast. The Costa Concordia cruise ship incident had had only a short-lived adverse impact on the industry and we understand that booking trends have picked up after a negative knee-jerk reaction.
Positive factors bode well for Manila gaming business. Average daily visitors to RWM reached 19,500 last year, from about 12,700 the previous year. Travellers thus saw an 85.3% YoY surge in revenue for FY11. Moreover, key macro data in the Philippines are positive, with January 2012 tourist arrivals hitting above 400,000 for the first time. We understand that most VIPs currently are locals and there should be ample room to build up on overseas VIP volume. Ongoing developments in RWM should drive visitor volume upwards.
I bought during December 2011 at average USD0.265.
After 4 months, my capital gain is almost 40%. I believe is good enough unless you have something for me that growth 50% in 4 months time?
francisd ( Date: 23-Mar-2012 15:45) Posted:
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