GENM
Genting Malaysia Berhad
Company Background
Tourism Revival a Boon for Genting
Genting Bhd is expecting international tourism to remain strong, with continued growth driven by positive demand and the ongoing recovery in global travel.
Consequently, the operator of integrated resorts said the regional gaming market is expected to maintain its recovery momentum.
With the release of its results for the fourth quarter (4Q24) and the full year for 2024 (FY24), Genting posted a net loss of RM169.4mil, a reversal from the RM150mil profit it made in 4Q23.
Revenue also slipped 5.3% year-on-year (y-o-y) to RM6.88bil, which Genting attributed to lower income from its leisure and hospitality division.
Looking at the whole FY24, the group saw net profit dip 5% y-o-y to RM882.9mil, despite a marginal 2.2% increase in turnover to RM27.7bil.
Genting said the increase in yearly revenue was attributable mainly to the contribution from its leisure and hospitality division.
“Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM8.78bil for FY24 was marginally lower over the previous financial year,” it reported.
Genting said higher revenue was recorded by Resorts World Sentosa (RWS) in Singapore as the resort delivered a strong performance across both the gaming and non-gaming categories for FY24.
Although turnover had surpassed pre-pandemic levels, the group said rising costs and inflationary pressure remained significant challenges, contributing to a decline in adjusted Ebitda.
Additionally, revenue from Resorts World Genting (RWG) in FY24 was higher mainly due to an increased volume of business compared with FY23.
The leisure and hospitality businesses in the Britain and Egypt recorded higher revenue mainly due to a higher volume of business, matched by Resorts World New York City (RWNYC) and Resorts World Bimini, which also saw higher income primarily due to higher contribution from RWNYC as a result of better volume.
At the same time, Genting said its plantation division’s revenue was marginally lower in FY24, primarily attributable to lower sales in the downstream manufacturing segment, partly mitigated by higher palm product prices.
“However, adjusted Ebitda was higher on the back of stronger palm product prices. The downstream-manufacturing segment also recorded higher adjusted Ebitda in FY24 attributable to improved margins,” the group added.
Meanwhile, the group’s subsidiary Genting Malaysia Bhd (GENM) similarly saw a net loss of RM457.9mil for 4Q24, compared with a RM239.6mil net profit in 4Q23, even though revenue had stayed flattish at RM2.73bil.
GENM attributed the 4Q24 net loss to the recognition of net unrealised foreign exchange losses of RM356.9mil mainly on its US dollar denominated borrowings recorded in 4Q24 compared with net unrealised foreign exchange gains of RM130.4mil in 4Q23.
It said a higher share of losses in associates of RM13.2mil due to higher operating expenses in 4Q24 also impacted earnings during the quarter.
GENM said net profit for FY24 decreased by 42.5% y-o-y to RM251.3mil, even though turnover grew 7.1% to RM10.9bil.
It said the growth in revenue was primarily due to higher volumes of business seen in the leisure and hospitality business in Malaysia, Britain and Egypt, as well as in the United States and the Bahamas.
While posting higher y-o-y Ebitda of RM2.9bil in FY24, GENM attributed higher operating expenses, including payroll related expenses across all business segments, to the lower net earnings.
Genting declared a dividend of five sen per share for 4Q24, bringing its total dividends for FY24 to 11 sen, while GENM also proposed a dividend of four sen per share for 4Q24, bringing total dividends for FY24 to 10 sen per share.
Separately, Genting’s plantation unit Genting Plantations Bhd (GenP) announced that Datuk Indera Lim Keong Hui will assume the role of chief executive effective March 1, transitioning from his position as deputy chief executive, which he has held since Jan 1, 2019.
In a statement, the plantation group said Lim remained a non-independent executive director of GenP.
Keong Hui, the son of Tan Sri Lim Kok Thay, who is current chairman and chief executive of Genting, also holds positions at Genting Bhd and Genting Malaysia , both as deputy chief executive and executive director.
GenP said the appointment followed Datuk Seri Tan Kong Han stepping down as chief executive on the same date, a role he had held since 2019.
Tan will no longer manage GenP’s daily operations but will remain an executive director and support Lim in leading the group.
Meanwhile, Genting Bhd has appointed Tan as its new chief executive officer, effective March 1, replacing Kok Thay, who has held the position for nearly two decades.
$GENTING / 3182 (GENTING BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$GENP / 2291 (GENTING PLANTATIONS BERHAD)
Source: The Star
Titan Trading Notes For Tuesday [18/2/2025]:
KLCI retraced back towards the 1582 points region with an overall negative market sentiment as we saw over 700 counters closing red for the day. Daily trading volume maintained around the 2.98 billion mark, which is still alright.
Main stocks that showed strong buying momentum today would be the likes if GENM, ASIAPLY, LHI, PERDANA, TANCO, NOTION, GENETEC, and PMETAL. All of which were able to sustain their rallies throughout the day despite the weak market sentiment on the top volumes list.
$GENM / 4715 (GENTING MALAYSIA BERHAD) definitely having a pretty interesting recovery here since breaking out from its RM 2.30+ major resistance from the day before, breaking out towards the RM 2.45+ regions today with good volume and buying momentum.
So far looking quite strong here and as long as able to hold above its RM 2.35+ immediate support levels, could continue on towards and beyond its RM 2.55 major resistance levels soon for a further recovery rally.
Will be monitoring GENM closely here.
$PMETAL / 8869 (PRESS METAL ALUMINIUM HOLDINGS BERHAD) on the other hand seems to be recovering quite well too since it retested its RM 4.80+ major support levels just a few weeks ago on the daily chart. Today, it was able to breakout strong towards the RM 5.20 regions with good volume.
So far looking quite well off here and as long as able to hold above its RM 5 immediate support level on the daily chart, could breakout towards and beyond its RM 5.20++ major resistance levels for a further breakout.
Will be monitoring PMETAL closely.
$NATGATE / 0270 (NATIONGATE HOLDINGS BERHAD) on the other hand been consolidating over the past week here with RM 1.94+ as the main support levels, but was able to rebound strong back towards the RM 2 regions towards closing today with good volume.
This could be a sign that it will be ripe for an incoming breakout towards its RM 2.10 - RM 2.20+ major resistance levels soon in the coming week here. Overall still looking quite strong.
Will be monitoring NATGATE closely.
Titan Trading Notes For Monday [18/2/2025]:
KLCI retraced slightly back towards the 1591 points region with an overall negative market sentiment as we saw almost 600 counters closing red for the day here. Daily trading volume settled around the 3.2 billion mark, mainly dominated by sellers.
Main stocks that showed strong buying momentum would be the likes of MPIRE, GAMUDA, LHI, YTL, GENTING, SCGBHD, CAPITALA, and ABLEGLOB. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.
$GENM / 4715 (GENTING MALAYSIA BERHAD) following its earlier sell down back towards the RM 2.10 main support levels, been able to form a solid base and broke out strong towards the RM 2.40+ major resistance levels on Friday with good volume and buying momentum here.
Seems to have formed its dip region here already and if able to hold above its RM 2.30+ immediate support levels on the daily chart, could continue to rebound further towards its RM 2.45 - RM 2.50+ major resistance until its next pullback.
Will be monitoring GENM closely here.
$LHI / 6633 (LEONG HUP INTERNATIONAL BERHAD) on the other hand been able to breakout towards the RM 0.63 regions with good volume and buying momentum, following the recent bird flu that hit across USA, sending egg prices soaring high up.
For now looking strong here and will be facing its RM 0.635 - RM 0.65+ major resistance levels soon. As long as able to hold above its RM 0.60 support, could breakout and trend back up towards the RM 0.66 - RM 0.69+ regions soon for an uptrend continuation pattern.
Will be monitoring LHI closely, along with all the other poultry counters.
Stocks like $NOTION / 0083 (NOTION VTEC BERHAD) and YBS took a huge hit on Friday here, having huge and sudden selling activities out of nowhere, suggesting that it could be a potential margin call on some larger investors which led to the potential forced selling activities.
NOTION for now still have some support around RM 0.48 here and needs to hold strongly before we can expect any further rebound from this stock here.
YBS on the other hand broke past below its RM 0.53+ major support levels and retraced back towards the RM 0.47 regions earlier in the morning. Although was able to rebound back towards the RM 0.595 regions, still not looking too good yet here.
Will monitor YBS and NOTION closely here, but not having a good feeling about it. as so far nobody knows what's going on yet.
Suddenly everyone just like sinful stocks
$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$GENTING / 3182 (GENTING BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by CGSI
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Reports by CGSI
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Reports by MAYBANK
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Report by TA
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Report by PBIV
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Report by MAYBANK
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research Report by CGSI
$GENM / 4715 (GENTING MALAYSIA BERHAD)
How the mighty have fallen. I thought GENM could stay permanently in KLCI Top 30. Now it's not certain.
Things seem to not get in the way of GENM, from USD600mil lawsuit, to its dropping share prices.
Would Nov-Dec be the month where the banker get back their profits once and for all? Or will GENM descend further to sub RM2 levels, a level since Covid times?
Just to play Devil's Advocate, if GENM gives out Special Dividend, will investors come back?
KUALA LUMPUR: Genting Malaysia Bhd has downplayed any significant impact from the lawsuit filed by RAV Bahamas Ltd, saying it will not affect the group’s financial performance or operations.
© New Straits Times Press (M) Bhd
KUALA LUMPUR: Genting Malaysia Bhd’s (GENM) pursuit of a casino licence in New York could be affected by a legal complaint filed by its joint-venture partner in Florida, according to CGS International Research.
© New Straits Times Press (M) Bhd
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by Maybank
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by CGSI
KUALA LUMPUR: Genting Malaysia Bhd, Capital A Bhd, AirAsia X Bhd (AAX), Critical Holdings Bhd, Exsim Hospitality Bhd and Fajarbaru Builder Group Bhd are among the stocks to watch on Tuesday.
KUALA LUMPUR: Genting Malaysia Bhd, Capital A Bhd, AirAsia X Bhd (AAX), Critical Holdings Bhd, Exsim Hospitality Bhd and Fajarbaru Builder Group Bhd.
KUALA LUMPUR: Genting Malaysia Bhd’s US subsidiary, Genting Americas Inc. (GAI), is being sued by RAV Bahamas Ltd in relation to the operations of Resorts World Bimini (RW Bimini) in the Bahamas.
© New Straits Times Press (M) Bhd
PETALING JAYA: Genting Malaysia Bhd’s (GENM) US incorporated subsidiary is being sued RM2.6bil (US$600mil) for fraud by its joint venture (JV) partner.
Genting Malaysia Bhd (GenM) is expected to see earnings recovery in the coming quarters, driven by tourism growth and increased revenue from its integrated leisure complex, Resorts World Genting (RWG).
$GENM / 4715 (GENTING MALAYSIA BERHAD)
This stock's probably gonna get booted out of KLCI Top 30 for 1st time in decades.
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by CGSI
Phillip Research has revised downward its headline earnings forecasts for Genting Malaysia Bhd for the next few years, accounting for costs associated with a stronger ringgit.
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by Public
Outperform - TP RM3.00
"Dragged By Higher Costs"
Genting Malaysia’s (GENM) 2QFY24 net profit rose 74.5% YoY to RM82.3m due to higher contribution from the Leisure & Hospitality segment, particularly Malaysia and the UK & Egypt. However, after stripping out foreign exchange effect and non-operating items, core net profit was down 17% YoY due to higher operating expenses. For 1HFY24, results were below expectations at 31% and 34% of our and consensus full-year estimates respectively. The variation in our forecast
was mainly due to higher-than-expected depreciation and tax costs. As we raise our depreciation cost assumption for FY24-26F, we reduce our earnings forecasts by an average of 14%. We re-introduce our SOTP-based TP of RM3.00 following a temporary suspension of coverage. Maintain Outperform. An interim dividend of 6.0sen per share was declared.
Analyst:
Eltricia Foong
eltriciafoong@publicinvestbank.com.my
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by Maybank
Buy - TP RM3.09
"Slight pause after stellar 1Q24"
2Q24/6M24 results were within our expectations. Positively, the negative impact of the Sales & Service Tax (SST) hike has been tepid. On another note, GENM has not decided when its old mass gaming floors will reopen. We maintain our earnings and dividends estimates, BUY call and MYR3.09 DCF-TP. We still like GENM for its earnings recovery coupled with the prospect of Resorts World New York City securing a full casino license by end next year that could add at least MYR0.50 to our DCF-TP.
Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by HLIB
Buy - TP RM3.03
"Impacted by higher costs"
GenM registered 1HFY24 core PATMI of RM286.3m (+173.8% YoY), making up 28%/35% of our/consensus full year forecast. The key negative deviation to our forecast was mainly due to lower-than-expected revenue, alongside higher-
than-expected finance costs and taxes. Going forward, we anticipate that GenM will continue to reap the advantages of the recovery in foreign visitations. We lowered our FY24f/25f/26f by 28%/24%/23% to mainly reflect lower revenue, higher finance and tax expenses assumptions. We maintain BUY rating on GenM with a lower SOP-derived TP of RM3.03.
Analyst:
Chee Kok Siang
cheeks@hlib.hongleong.com.my
$GENM / 4715 (GENTING MALAYSIA BERHAD)
Research by TA
Buy - TP RM3.13
"Supports from Foreign Tourists"
We maintain GENM’s DCF valuation to RM3.13/share with unchanged CAPM of 19.3%. Maintain Buy on GENM for its compelling dividend yield of more than 6.0%.
Analyst:
Tan Kam Meng, CFA
kmtan@ta.com.my
$FACBIND / 2984 (FACB INDUSTRIES INCORPORATED BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$HOHUP / 5169 (HO HUP CONSTRUCTION COMPANY BHD)
$ANNJOO / 6556 (ANN JOO RESOURCES BERHAD)
