Journey to Wealth
Genting Bhd - 2Q12 within expectations
Period 2Q12
Actual vs. Expectations
Stripping out the EI, the 2Q12 core earnings of RM607.5m came in largely in line. This brought 1H12 core profit to RM1.28b, which accounted for 48% of our FY12 full-year estimate and 47% of the market consensus.
Dividends A 3.5sen GDPS was announced in 2Q12, which is the same as last year.
Key highlights
The 2Q12 reported net profit, which contracted by 23% QoQ (-21% YoY) to RM534.5m due mainly to the RM174.3m one-off gain from the disposal of its entire 100% stake in Genting Oil Natuna and Sanyen Oil & Gas recognised in 1Q12.
This round, it was the pre-operating cost of West Zone, which hit Genting Singapore's ('GENS', NOT RATED) 2Q12 earnings, where its 2Q12 adjusted EBITDA dipped 17% QoQ while revenue dropped 9%. Nonetheless, the casino earnings were fairly flattish QoQ as the decline in the business volume (-4% QoQ) was mitigated by an improved luck factor (3.1% in 2Q12 for rolling chip wins from 3.4% previously).
Genting Malaysia Bhd ('GENM', OP; TP: RM4.18) reported a broad base improvement in its results. The 2Q12 adjusted EBITDA for its Malaysian casino rose 19% QoQ, nearly tripled for UK casinos while the USA unit posted an adjusted EBITDA of RM60.6m from RM1.3m in 1Q12, all due to improved business volumes.
Despite a higher revenue by 7% QoQ, Genting Plantation Bhd ('GENP', OP; TP: RM9.70) reported a 2Q12 adjusted EBITDA in plantation unit, which contracted by 5% QoQ due to a higher proportion of third party's CPO and palm kernel (which has lower margins) processed. In 2Q12, its average selling price for CPO was RM3,206/mt vs. RM3,179/mt in 1Q12 while the average selling price for palm kernel dipped 3% to RM1,890/mt.
Power assets posted a 2Q12 adjusted EBITDA of RM141.6m, which rose 13% QoQ on the back of a 9% hike in revenue. This was due mainly to a higher net generation by the Jangi power plant.
Outlook The pre-opening cost for West Zone is expected to be recognised further in 2H12. However, GENS' earnings will improve once the charge is fully recognised by this year-end.
GENM should enjoy higher earnings on resilient RWG earnings, a turnaround in the UK casinos and a full year earnings impact from RWNYC.
GENP's earnings are unlikely to repeat its FY11 supernormal profits due to lower FFB production and lower CPO prices.
Source: Kenanga
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
Apps
Top Articles
1
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
2
3
Koon Yew Yin's Blog
CPO price is rising rapidly as shown by chart below - Koon Yew Yin
4
Axcapital's investment blog
KAB - Executing its way to a record quarter. Could more Petronas contracts be coming?
6
7
8
BFM Podcast
#
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....
