GENTING
Genting 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
Suddenly everyone just like sinful stocks
$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$GENTING / 3182 (GENTING BERHAD)
$GENTING / 3182 (GENTING BERHAD)
Big Genting kicked out of KLCI Top 30. Shows how difficult it is to sustain KLCI Top 30 position. Even legacy stocks like Genting aren't guaranteed a spot forever.
Dividend seekers eyeing Genting could be rubbing their hands in glee now. But losing KLCI status may mean that potential upside is capped when you don't have the strong arm of fund managers supporting.
$GENTING / 3182 (GENTING BERHAD)
Research Report by TA
$GENTING / 3182 (GENTING BERHAD)
Research Report by PBIV
$GENTING / 3182 (GENTING BERHAD)
Research Report by MAYBANK
$GENTING / 3182 (GENTING BERHAD)
Research Report by CGSI
$GENTING / 3182 (GENTING BERHAD)
At RM3.94, GENTING is really at saat genting (critical juncture) now. The main support at RM4 gave way.
Without much positive catalysts, GENTING should languish around RM3.60-RM4 for some time. Maybe some special dividends to maintain shareholders' support?
Big GENTING should still be in KLCI. But GENM is at real risk of getting booted out of KLCI, which means more downside.
KUALA LUMPUR: Genting Bhd’s 95%-owned subsidiary, PT Layar Nusantara Gas (PTLNG), has signed a definitive agreement with China National Machinery Import & Export Corporation and Shandong Kerui Energy Development Co. Ltd.
$GENTING / 3182 (GENTING BERHAD)
Research by Maybank
KUALA LUMPUR: The FBM KLCI ended 0.34% lower at the midday break today, dragged down by losses in Public Bank Bhd and Genting Bhd.
$GENTING / 3182 (GENTING BERHAD)
Research by Public
Outperform - TP RM6.00
"Above Expectations"
Genting Bhd’s (GENT) 2QFY24 net profit jumped 49.3% YoY to RM239.7m, predominantly driven by higher contribution from the plantation and oil & gas segments. Stripping out non-operating items, 1HFY24 core net profit of RM1,179m exceeded our and market expectations, accounting for 67% and 68% of full-year estimates respectively. The discrepancy in our forecast was mainly due to higher-than-expected contribution from Singapore. As we cut our earnings forecasts on Genting Malaysia and raise the contribution from Singapore, our FY24-26F estimates are adjusted up by an average of 8%. Our SOTP-based TP remained unchanged at RM6.00. Maintain Outperform. An interim dividend of 6.0sen per share was declared.
Analyst:
Eltricia Foong
eltriciafoong@publicinvestbank.com.my
$GENTING / 3182 (GENTING BERHAD)
Research by Maybank
Buy - TP RM5.83
"Took a breather before seasonally stronger 2H24"
2Q24/6M24 earnings were within our expectations but dividends disappointed. We trim our SOP-TP by 1sen to MYR5.83 only to reflect our latest TP for GENP (MYR5.95 vs. MYR6.21) while ascribing an unchanged 60% discount to SOP/shr valuation (-2.5 SD to long term mean). GENT refrained from commenting on the complaints against it by the Nevada Gaming Control Board but confirmed that 20%-owned TauRx ought to know whether its drug will be approved in the United Kingdom by year end.
Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com
$GENTING / 3182 (GENTING BERHAD)
Research by HLIB
Buy - TP RM7.83
"Within expectations"
GenT registered 1HFY24 core PATMI of RM1,120.2m (+116.1% YoY), making up 54% of our (within) and 65% of the streets’ (above) full year forecast. Hence, we made no changes to our FY24f/25f/26f earnings forecast. Going forward, GenT is on track for sustained recovery momentum, with multiple factors in play contributing to its positive outlook. The group is expected to benefit from the continued recovery in foreign visitations at both RWG and RWS. Furthermore, GenT has the potential value-add from TauRx Pharmaceutical if HMTM receives FDA approval. Maintain BUY on GenT, with a slightly higher SOP-derived TP of RM7.83 to mainly reflect higher TP for GenS.
Analyst:
Chee Kok Siang
cheeks@hlib.hongleong.com.my
$GENTING / 3182 (GENTING BERHAD)
$GENTING / 3182 (GENTING BERHAD)
Research by TA
Buy - TP RM4.76
"The Laggard in FBMKLCI"
We cut upgrade Genting SOP-valuation to RM4.76/share (from RM5.77) after revising GENS’ DCF valuations lower post earnings downgrade. Maintain Buy
Analyst:
Tan Kam Meng, CFA
kmtan@ta.com.my
$GENTING / 3182 (GENTING BERHAD)
Research by CGS
Add - TP RM6.65
"Low valuations signal Add opportunity"
■ 2Q24 results were within expectations; interim dividend of 6 sen declared.
■ While RWLV AML is an overhang, the stock is trading at just 10x FY25F P/E.
■ Reiterate Add but cutting FY24F-25F EPS and TP to RM6.65.
Analyst:
CHONG Tjen-San, CFA
tjen-san.chong@cgsi.com
LEW Cheng Wei
chengwei.lew@cgsi.com
$GENTING / 3182 (GENTING BERHAD)
Research by Maybank
“Nearing Rating Upside Trigger"
Genting lost its long-held AAA rating at the height of the pandemic, being reduced to AA1/negative before stabilizing at AA1/stable in Sep 2022 following relaxation of travel curbs. Credit metrics have since improved meaningfully, supported by higher revenue and profitability, and reduced capex. One of two RAM financial upside triggers has been met, raising hope for a positive outlook. A key risk to rating upside is large new investments that could strain its credit profile.
Analysts:
Winson Phoon, FCA
winsonphoon@maybank.com
Se Tho Mun Yi, CFA
munyi.st@maybank-ib.com
PETALING JAYA: Genting Bhd’s power plant project in China and floating liquified natural gas (FLNG) venture in Indonesia will be earnings accretive from 2026 onwards and the business expansion for its energy division will yield good returns over mid to long-term horizon.
Genting Bhd’s recent corporate moves have put a spotlight on the group’s commitment to other businesses.
$GENTING / 3182 (GENTING BERHAD)
Research by Maybank
Buy – TP RM5.84
“Inked 2 agreements with Chinese parties"
GENT will expand into the independent power producer (IPP) industry in China and has separately commissioned a Chinese contractor to construct a floating liquefied natural gas (FLNG) facility. Our earnings estimates and TP are unchanged as details are lacking. That said, we believe they will be long term earnings and value accretive. On the latter development, our ‘back of the envelope’ calculations indicate that it could accrete MYR1.68/shr to our SOP-TP (assuming nil holding company discount).
Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com
KUALA LUMPUR: Genting Bhd, along with its partner TauRx Pharmaceuticals Ltd., is currently seeking approval from both the United Kingdom's Medicines and Healthcare products Regulatory Agency (MHRA) and the US Food and Drug Administration (FDA) for its Alzheimer's disease drug.
© New Straits Times Press (M) Bhd
KUALA LUMPUR: Genting Bhd aims to generate US$8.5 billion in revenue over the next 25 years from developing and operating a gas power plant in the Zhejiang province.
© New Straits Times Press (M) Bhd
KUALA LUMPUR: Genting Bhd via its indirect subsidiary Genting MZW Pte Ltd has struck a deal to acquire a 49% stake in a 2 X 745MW gas-fired power plant in Zhoushan Greater Shanghai Area in Zhejiang, China, for RMB100mil (RM64.87mil).
KUALA LUMPUR: Genting Bhd today announced that two of units have joined forces to commission a US$962 million (RM4.5 billion) floating liquefied natural gas (LNG) facility to be used in West Papua, Indonesia.
© New Straits Times Press (M) Bhd
GENTING - Trading Halt & Resumption of Trading
OTHERSGENTING BERHAD, VIA ITS INDIRECT SUBSIDIARIES, SIGNED A SHARE SALE AND PURCHASE AGREEMENT WITH JINENG INTERNATIONAL ENERGY CO., LTD AND A HEADS OF AGREEMENT WITH SDIC POWER HOLDINGS CO., LTD. IN RELATION TO THE DEVELOPMENT AND OPERATION OF A GAS FIRED POWER PLANT IN THE GREATER SHANGHAI AREA IN THE ZHEJIANG PROVINCE, CHINA
Change in Boardroom - DATO DR THILLAINATHAN A/L RAMASAMY
General Meetings: Outcome of Meeting
CGSI TOP PICKS JUNE 2024...
$GENTING / 3182 (GENTING BERHAD) $DAYANG / 5141 (DAYANG ENTERPRISE HOLDINGS BERHAD) $GENETEC / 0104 (GENETEC TECHNOLOGY BERHAD) $MYNEWS / 5275 (MYNEWS HOLDINGS BERHAD) $MCEMENT / 3794 (MALAYAN CEMENT BERHAD)
