Journey to Wealth
Genting Bhd - Venturing into pharmaceuticals?
News It was announced on TauRx's website that Genting Management (Singapore) Pte Ltd (GMS), a wholly-owned subsidiary of GENTING, had invested USD31.5m in TauRx Pharmaceuticals Ltd.
This is the first tranche of a total investment of USD111.8m by GMS in TauRx in exchange for a 20% equity stake. The remaining USD80.3m investment is expected before the year-end.
TauRx has also announced the appointment of GENTING's Chairman & CEO, Tan Sri Lim Kok Thay and President & COO, Mr Tan Kong Han as the Board of Directors of the pharmaceutical firm.
Comments This non-gaming venture came as a surprise to us as the company's intention is to be mainly focused on growing its casino business.
The size of the investment is insignificant against the group's equity fund of RM19.2b. As such, we are neutral on this venture as it is not synergistic to the group's current businesses.
Note that GENTING itself has yet to make any official announcement on this matter.
TauRx was established in Singapore in 2002 with its primary research facilities located in Aberdeen, Scotland. It is a clinical stage pharmaceutical company focusing on the discovery of therapies and diagnostics for neurodegenerative diseases of the central nervous system.
In particular, the company is developing Tau Aggregation Inhibitors to slow or halt the progression of Alzheimer's and related diseases.
Outlook We are unable to quantify the earnings impact from this venture to the group at this juncture, although we believe that it should be immaterial.
Forecast No changes to our estimates.
Rating Maintain OUTPERFORM
Valuation We are keeping our TP on GENTING unchanged at RM10.09/share based on a 20% discount to its SOP while awaiting its results to be released later this month.
Risks Risks to our call are 1) poorer luck factor and 2) a substantial decline in 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
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?
5
Mercury Securities Research
6
BFM Podcast
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....
