Target Price : RM8.35
Union Bank of Colombo has inked a deal to raise 1.5 billion rupees (RM42m) in capital from Genting Group, a Malaysian conglomerate and Shorecap, a US based banking fund. It hopes to go public within a year, an official said. "Genting is giving 1.0 billion rupees (RM28m), Shorecap 500 million rupees (RM14m)," Union Bank chairman Ajita de Soyza said. “In a couple of months we will be planning an IPO (initial public offering) as well." Under a private placement, Genting would get a 20% stake in the bank and Shorecap, 13%, Soyza said. (Lanka Business Online)
Maintain BUY. We are NEUTRAL on the acquisition given its smallish size and potentially strong percentage returns to be gained upon IPO. Maintain our BUY recommendation and target price of RM8.35.
Showing posts with label Super Stock : GENTING Bhd. Show all posts
Showing posts with label Super Stock : GENTING Bhd. Show all posts
Tuesday, May 4, 2010
Tuesday, April 27, 2010
GENTING BERHAD : GENTING SP Quarterly Earning Review
1Q10 results are due to be released in May, but will be affected by several factors.
Positive factors:
1) Chinese New Year festivities, traditionally, a peak season and
2) Genting Singapore was the sole casino operator in Singapore.
3) Attractive contribution from Universal Studio theme park.
Negative factors:
1) the pre-opening expenses,
2) only six weeks of casino operations,
3) the gradual ramp-up of casino, starting at 50% utilisation.
Positive factors:
1) Chinese New Year festivities, traditionally, a peak season and
2) Genting Singapore was the sole casino operator in Singapore.
3) Attractive contribution from Universal Studio theme park.
Negative factors:
1) the pre-opening expenses,
2) only six weeks of casino operations,
3) the gradual ramp-up of casino, starting at 50% utilisation.
Monday, March 8, 2010
GENTING SP : Universal Studio
USS to open on 18 March: RWS will open the Universal Studios Singapore (USS) to the public on 18 Mar 2010, a slight delay from the early-Mar 2010 timeline indicated earlier.
Tickets will start selling on 9 Mar 2010. USS one-day passes range from SGD32-72 (depending on categories ie adult/child/senior; weekday/weekend) - cheapest amongst Universal Studios theme parks globally (Figure 2). USS’ two-day passes range from SGD58-118, higher than Universal Studios Hollywood’s due to the larger physical design and no of rides. USS’ annual passes, however, rank as the most expensive among Asian theme parks (Figure 3), at SGD318-1098.
Although USS ticket price would be at a premium to Disneyland Hong Kong, Ocean Park and Genting Highlands, USS offers an integrated resortsconcept and more rides. The Universal Studios brand has a strong proven track record, with Universal Studios Japan ranked 9th most popular theme
park in the world, and third in Asia with 8.3m attendance in 2008 (11m in its first year of operations).
New original rides to attract visitors. USS will consist of seven zones ie Hollywood, New York, Sci-Fi City, Ancient Egypt, The Lost World, Far them are original or specially designed for USS. We understand most of the rides (>80%) will be opened in the first year (unlikely all on the first day of launch) while the rest to be introduced progressively over the next four years to attract repeat visitors. Among major highlights are the dueling coaster (world’s tallest roller coaster) and Transformer ride (world’s first, expected in 2011). USS is 70% covered, with an eco-cooling system installed to create a more controlled environment.
Universal Studios has promised that this will be the only park it would have in Southeast Asia for the next 30 years and expects to draw in >5m visitors annually (14k/day). However, competition could intensify with Universal Studios opening new themeparks in Dubai and Seoul, Korea(likely Asia’s biggest Universal Studios) by 2012 and 2014 respectively.
Slow start seen for visitor arrivals. The launch of USS should help draw in more mass visitors to RWS. Visitor arrivals have fallen short of management’s expectation of 12m p.a. or 33k/day, having averaged only ~20k/day in the first two weeks of casino’s operations (during the peak Chinese New Year celebration). RWS’ casino may need another 4-6 weeks to fully ramp up to 560 tables and 1300 slots. So far, it has opened 270 tables (50 VIP, 220 mass).
USS’ opening will complete the launch of RWS’ Phase 1 while Phase 2 is expected to complete by 2011. USS should provide RWS a more subtle approach in its marketing and promotional activities in countries where advertising on gaming is banned.
Maintain HOLD call. Although GENS has fallen 31% off its peak and valuations have moved closer to sector average (26x 2011 PE, 14x EV/EBITDA vs sector’s 17x and 12x respectively), we are still maintaining our Hold call and sum-of-parts TP of S$1.07. Potential risk of further earnings downgrade should RWS’ ramp up is slower than expected and Marina Bay Sands (launching on 27 Apr 2010) wrestles more market share than anticipated. We prefer Genting Bhd (Buy/ TP: RM8.80) for cheaper exposure to Singapore IRs and resilient base earnings from Malaysian casino, plantation and power segments.
Tickets will start selling on 9 Mar 2010. USS one-day passes range from SGD32-72 (depending on categories ie adult/child/senior; weekday/weekend) - cheapest amongst Universal Studios theme parks globally (Figure 2). USS’ two-day passes range from SGD58-118, higher than Universal Studios Hollywood’s due to the larger physical design and no of rides. USS’ annual passes, however, rank as the most expensive among Asian theme parks (Figure 3), at SGD318-1098.
Although USS ticket price would be at a premium to Disneyland Hong Kong, Ocean Park and Genting Highlands, USS offers an integrated resortsconcept and more rides. The Universal Studios brand has a strong proven track record, with Universal Studios Japan ranked 9th most popular theme
park in the world, and third in Asia with 8.3m attendance in 2008 (11m in its first year of operations).
New original rides to attract visitors. USS will consist of seven zones ie Hollywood, New York, Sci-Fi City, Ancient Egypt, The Lost World, Far them are original or specially designed for USS. We understand most of the rides (>80%) will be opened in the first year (unlikely all on the first day of launch) while the rest to be introduced progressively over the next four years to attract repeat visitors. Among major highlights are the dueling coaster (world’s tallest roller coaster) and Transformer ride (world’s first, expected in 2011). USS is 70% covered, with an eco-cooling system installed to create a more controlled environment.
Universal Studios has promised that this will be the only park it would have in Southeast Asia for the next 30 years and expects to draw in >5m visitors annually (14k/day). However, competition could intensify with Universal Studios opening new themeparks in Dubai and Seoul, Korea(likely Asia’s biggest Universal Studios) by 2012 and 2014 respectively.
Slow start seen for visitor arrivals. The launch of USS should help draw in more mass visitors to RWS. Visitor arrivals have fallen short of management’s expectation of 12m p.a. or 33k/day, having averaged only ~20k/day in the first two weeks of casino’s operations (during the peak Chinese New Year celebration). RWS’ casino may need another 4-6 weeks to fully ramp up to 560 tables and 1300 slots. So far, it has opened 270 tables (50 VIP, 220 mass).
USS’ opening will complete the launch of RWS’ Phase 1 while Phase 2 is expected to complete by 2011. USS should provide RWS a more subtle approach in its marketing and promotional activities in countries where advertising on gaming is banned.
Maintain HOLD call. Although GENS has fallen 31% off its peak and valuations have moved closer to sector average (26x 2011 PE, 14x EV/EBITDA vs sector’s 17x and 12x respectively), we are still maintaining our Hold call and sum-of-parts TP of S$1.07. Potential risk of further earnings downgrade should RWS’ ramp up is slower than expected and Marina Bay Sands (launching on 27 Apr 2010) wrestles more market share than anticipated. We prefer Genting Bhd (Buy/ TP: RM8.80) for cheaper exposure to Singapore IRs and resilient base earnings from Malaysian casino, plantation and power segments.
Wednesday, January 20, 2010
GENTING Bhd : Complementary theme park project in southern Johor
Genting had recently indicated that it may spend RM200m to build a theme park and hotel in southern Johor to compliment its flagship high-end retail outlet in southern Johor based on the Chelsea Premium outlet concept. Earlier, the Genting group via its 54.7% subsidiary, Genting Plantations and US listed Simon property group, had formed a 50:50 JV called Genting Chelsea Sdn Bhd to invest in and operate Premium Outlet centres in Malaysia. The relatively small initial investment sum of RM200m for the theme park and hotel vs Genting Highlands’ annual maintenance CAPEX of RM300m p.a alone, suggests that scope, scale and diversity of the attractions of this proposed venture is unlikely to pose any competitive risk to RWS. In fact, the proposed investment could be seen as a complementary to RWS by possibly expanding the captive tourism pool in Southern Johor for RWS to tap on.
Genting plans Iskandar hub
The Johor hub is expected to help facilitate two-way visitor flows between its Resorts World Genting development in Pahang and its soon-to-open integrated Resorts World Sentosa. Genting group plans to set up a hub in Iskandar Malaysia, Johor, that will feature a mall with premium outlets in the first phase and, later, hotels and a theme park. The hub in Johor is expected to be a mid-way point to help facilitate two-way visitor flow between its Resorts World Genting development in Pahang and its soon-to-open integrated resort in Singapore, Resorts World Sentosa. The proposed project in Iskandar has been approved by both the state and federal governments .The mall, to be known as Chelsea Premium Outlet, will be operated jointly with US firm Simon Property Group and will be the anchor of the whole project. It is expected to open next year. On the other hand, it is reported that Genting is also looking at a number of investment opportunities in the US (BT)
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