Journey to Wealth
Genting Malaysia - Maiden contribution from RWNY BUY
Maintain BUY on Genting Malaysia Bhd (GenM), with an unchangedRNAV-based fair value of RM4.30/share. GenM's results were within consensusestimates and our expectations.
We have tweaked GenM's FY12F to FY13F earnings forecasts forhousekeeping reasons and to account for lower daily wins per machine at'Resorts World New York'(RWNY).
Our new assumption is a daily win of US$330/machine for FY12Fversus US$400/machine previously. Year-to-date, average daily win wasUS$347/machine.
GenM recorded a maiden contribution from RWNY in FY11. Excludingcost overruns, which contributed to a loss of RM17.3mil in 4QFY11,operationally RWNY recorded revenue of RM95.3mil and EBITDA of RM23.6mil fromtwo months of operations in FY11. This implies an EBITDA margin of 24.8%.
We understand that RWNY has stepped up its marketing effortsin New York and has implemented a bus programme running to, and from, Queensand Manhattan.
We also gather that there are seasonality trends to the averagedaily wins/machine. The average daily wins/machine tends to decline duringwinter and pick up during summer.
As for the legalisation of a full-fledged casino licence in NewYork, we understand that the legislative process would take 2'' to three years.In Miami, the next seating for the approval of the casino bill would be inFY13F.
Revenue of GenM's casino operations in Malaysia rose 7% YoYto RM5.4bil in FY11, underpinned by improvements in win percentage. If luckfactor were to normalise, then revenue would have risen by only 4% YoY in FY11.
Non-VIP players drove the increase in the volume of business.Volume of business from the non-VIP segment rose by a low double-digitpercentage YoY in FY11. This helped compensate for a single-digit percentagedecline in the volume of business from the VIP players.
In the UK, volume of business at the London casinos climbed22% YoY in FY11. Volume of business at the provincial casinos was flat YoY inFY11.
Source: AmeSecurities
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
MQ Trading Signals
Time
Signal
Duration
Type
2024-11-25 10:35:00
ADX
5 Mins
BUY
Apps
Top Articles
1
2
3
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
4
Good Articles to Share
5
Good Articles to Share
Four convicted in Spain over homophobic murder that sparked nationwode protests
6
Good Articles to Share
7
Good Articles to Share
What’s behind the slew of restaurant bankruptcies in 2024? Experts unpack the problems
8
Good Articles to Share
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
