Expect a one-time forex loss. However, the accounting treatment of forex gains and losses can be complex when it comes to financial reporting. We didn’t see a significant forex gain in the past two years, even though the USDMYR and SGDMYR rose significantly..By recognizing these gains or losses in Other Comprehensive Income (OCI), the company can smooth out earnings volatility and defer the impact of forex fluctuations..

1 SGD = 3.26 MYR
1 USD = 4.19 MYR

Very positive for Genting Berhad!

It's easy to calculate the savings on interest due to the reduction in debt. By applying the 5% interest rate to the debt reduction..we can estimate the recurring annual savings..

With the decline in the USDMYR exchange rate from RM4.71 to RM4.3, Genting Berhad has effectively reduced its USD-denominated borrowings.. which total USD 6.53 billion, by approximately RM2.6 billion. Moreover, if the USDMYR exchange rate drops further to RM4.0 by 2025, an additional debt reduction of around RM1.9 billion is anticipated.

Analysts' net debt forecasts for Genting Berhad appear achievable:

2023: MYR 15,000 million
2024: MYR 13,157 million
2025: MYR 11,072 million
2026: MYR 8,978 million.

This progressive reduction strengthens the company's financial position and prospects.

If the current USDMYR exchange rate of 4.3 is sustainable, then Genting will benefit from the lower cost of servicing its substantial USD debt on a recurring basis, for as long as this exchange rate remains stable..

I won’t respond to comments..

The Fed’s rate cuts provide a strong tailwind for Genting Berhad's potential U.S. IPO. The combination of lower borrowing costs, stronger consumer demand and improved equity valuations increases the likelihood of success for Genting’s IPO of RWLV, RWNYC and Empire Resorts..

Since Genting Berhad is trading significantly below its NAV, the market may already be factoring in the risks and uncertainties surrounding these assets, including currency fluctuations and the performance of U.S. operations. As a result, further reductions in U.S. asset values due to a weaker USD may not have an immediate or substantial impact on the share price, as it is already deeply discounted.

Genting Berhad holds significant assets in the U.S., Singapore and UK. These assets contribute to its NAV but are vulnerable to exchange rate fluctuations. When the USD, SGD weakens against the MYR, the value of U.S. assets in MYR terms decreases, affecting the company’s overall balance sheet and potentially its stock valuation.

interest rates generally boost economic activity by encouraging borrowing and investment. Genting’s U.S. operations, such as RWLV, RWNYC and Empire Resorts, could benefit from increased consumer spending, driven by improved economic conditions and cheaper financing options for U.S. consumers.

Genting Berhad has substantial USD-denominated debt, amounting to about USD 6.53 billion. The Fed’s decision to lower rates reduces Genting’s interest expenses on its USD borrowings...leading to immediate savings on debt servicing (recurring benefits). As interest rates fall further over the next few years, these savings will likely continue to improve Genting’s cash flow.

The Federal Reserve’s decision to cut interest rates by 0.5%..and signal further reductions over the next few years is generally positive for Genting Berhad in several ways...

Policymakers see the Fed’s benchmark rate falling by another half of a percentage point by the end of 2024, another full percentage point in 2025, and by a final half of a percentage point in 2026 to end in a 2.75 per cent to 3 per per cent range.

👍 👍 👍

As a result, investor confidence in Genting Berhad could grow...viewing Resorts World Sentosa as a stable and attractive asset. Overall, this scenario would indeed bode well for Genting Berhad, reinforcing its resilience and supporting long term growth. Cheers!

Genting Singapore... already a major player in the industry..could seize the opportunity to enhance its market share, attract more international tourists and increase revenue. This would not only mitigate the potential damage but could also position Genting Berhad to benefit from the changes as investor sentiment could shift toward Resorts World Sentosa as a safer and more stable asset in the group's portfolio.. Genting Singapore boleh!!

If such an extreme scenario were to unfold, it would undoubtedly be devastating for Genting Malaysia, as Resorts World Genting is a crucial part of its revenue. However, Genting Berhad’s diversified portfolio, particularly with Resorts World Sentosa in Singapore...could capitalize on shifts in regional tourism and investor sentiment. In such a case, Genting Singapore would gladly welcome everyone to Resorts World Sentosa, where the company could further strengthen its presence and boost performance.

Unloaded YTL and YTLp today, getting ready to accumulate more GenB next week. Cheers!

旧战国:
1) 4.20 - 4.00 - 5.00
2) 4.65 - 4.45 - 4.95
3) 4.95 - 4.55 - 4.87

新战国 4.87 - 4.65 - 4.50 - 4.30 - 4.10 => 5.50 (2025)?

GenB 又進入新一波战国時期... 快要两年了回味无穷!

To me, it is of great significance; to those with ulterior motives, it is full of slander..

旧'战国':
1) 4.20 - 4.00 - 5.00
2) 4.65 - 4.45 - 4.95
3) 4.95 - 4.55 - 4.87

新战国 4.87 - 4.65 - 4.50 - 4.30 - 4.10 => 5.10 (2025)?

GenB 又進入新一波战国時期... 快要两年了回味无穷!

To me, it is of great significance; to those with ulterior motives, it is full of slander..

Bye

No doubt. No nonsense. I respect prudentinvestor, too.

If you experience a 6% loss from the share price correction, dropping from 4.30+ to 4.10+, but gain 3 to 4% from the SGDMYR foreign exchange rate, what's the issue?
Go ..go GenB!

Smart investors accumulate during share price corrections, while naysayers and non shareholders keep talking nonsense every day. I have added more GenB (67,000 shares), YTL and YTLp yesterday. Cheers!

Dividends are reflected in the balance sheet..once a dividend is declared, it appears as a liability in the balance sheet under "Dividends Payable" until it is paid.
To see if dividends were paid out, you need to look at the cash flow statement or retained earnings section in the financial reports.

👍👍👍

The increase in debt in Q2 2024 for Genting Berhad is mainly because Genting Malaysia’s subsidiary, GENM Capital issued RM1.7 billion in Medium Term Notes during that quarter.

Also, Genting Berhad would likely record a significant forex gain due to the depreciation of the USD to 4.30 MYR, positively impacting its financial statements and overall financial health. A more significant depreciation of the USD to 4.0 MYR would lead to an even larger forex gain, lower debt servicing costs, and potentially reduced revenue in MYR terms. Overall, this scenario would likely further improve Genting Berhad's financial performance and health.

Ho ho ho...moving forward, the depreciation of the USD and a cut in US interest rates would generally be beneficial for Genting by reducing the value of its debt in MYR terms and lowering interest expenses, improving overall financial stability and cash flow.

Our company is growing stronger with cash and cash equivalents consistently rising:

30 Jun 2024: 25.65 billion
31 Mar 2024: 24.31 billion
31 Dec 2023: 23.66 billion
This shows solid financial health and effective resource management.

https://agbrief.com/news/malaysia/30/08/2024/genting-malaysia-doubles-profit-in-2q24-with-revenue-increases-across-all-segments/
Genting Malaysia doubles profit in 2Q24, with revenue increases across all segments

Last weekend, I conducted a site visit and Gemba walk at Resorts World Sentosa. It was crowded... with the majority of visitors being Chinese tourists.

1 SGD = 3.29 MYR.. 3.00 mari mari!
1 USD = 4.30 MYR...4.00 mari mari!!

GenB Q2 2024 financial report used an exchange rate of 4.7286 to convert USD to MYR. 😎

Resorts World Hudson Valley (RWHV) is a casino in Newburgh, New York, located inside the Newburgh Mall. It opened on December 28, 2022, with a $50 million investment from Genting Group. The casino features over 1,200 video gaming machines and aims to attract local residents and travellers.

RWHV is expected to boost the local economy by creating about 400 jobs and generating tax revenue. It is part of Genting's plan to expand its presence in the U.S. and complements their other properties like Resorts World New York City and Resorts World Catskills.

The casino covers 90,000 square feet within the Newburgh Mall, which is about 388,000 square feet in total. The space was renovated to create this modern gaming facility.

It depends on your interest. Are you a long-term investor, a day trader, or looking for a bargain? Each group sees the stock differently.

Genting’s prime locations in New York and Las Vegas ...along with their strong positions in Malaysia and Singapore... set them up for success. With these advantages, Genting is well positioned to thrive. Let’s stay optimistic about the future!!

Thanks lmCK.

@lmCK, I appreciate the update. It’s great to hear from you. Given the drop in USD/MYR from 4.7+ to 4.3 and the expected 10% discount next quarter, we should see a substantial decrease in debt and further depreciation. Cheers!

Go go..GenB

The smart ones loaded YTL, YTLp below 2.80 and 3.70 this morning for LT.

The 1.45 cents you mentioned would typically be the earnings per share ..after accounting for the dividend payout. In other words, the 1.45 cents should reflect the net income available to shareholders after the dividend has been paid.

According to accounting principles, dividends are paid out from the company's net income or retained earnings. After a company declares and pays dividends, the remaining amount should be what is left over, which is often reflected as earnings per share or retained earnings.

I’m relaxed and easygoing...like I said, when it comes to money, I prefer not to be arrogant.
Bye.

😁

Haha..Balian seems to have deleted all his posts and gone into hiding..

ImCK, you’ve hit the nail on the head! Rich customers love paying more to skip lines, and this strategy really benefits everyone. The annual pass brings more families to Genting, increasing spending on food, hotels, and other services. Plus, with kids having unlimited access, they’ll be eager to get their parents to visit more often. It’s a clever marketing strategy ...give a little to gain a lot. Well said!

@Balian, there’s nothing wrong with that. It’s just a marketing strategy..lowering prices during peak season encourages more people to buy annual passes. It’s all about driving sales and increasing traffic!

ImCK, you’ve got a point. Those annual passes could indeed boost Genting’s entire revenue stream, from dining to hotels, cable car tickets, parking and even the casinos. But I’m curious whether Balian is impressed by Genting’s “unique” strategy, or if he really believes he can turn Genting into the next Disney!! 🤔

For the casino industry, assessing a good capital structure involves industry-specific criteria along with general financial metrics. Here’s how to tailor the criteria:

1) Debt-to-Equity Ratio:
-Ideal Range: Typically between 1.0 and 2.0. The casino industry often operates with higher leverage due to large capital expenditures and investments in infrastructure.

2) Interest Coverage Ratio:
-Ideal Value: Generally above 2.0. Casinos with significant debt should have sufficient earnings to cover interest expenses, given their high capital costs and fluctuating revenues.

3) Leverage Ratios:
-Debt-to-Assets Ratio: Usually between 0.5 and 0.7. Casinos often have high asset bases with substantial debt due to property and facility investments.
-Debt-to-Capital Ratio: Typically between 0.4 and 0.6. This reflects the proportion of debt in the company's total capital, considering the capital-intensive nature of the industry.

4) Cost of Capital:
-WACC (Weighted Average Cost of Capital): Should be managed to balance debt and equity costs. Casinos should aim for a WACC that supports their return on investment, factoring in their high capital expenditure needs.

5) Financial Flexibility:
-Access to Capital: Ability to secure funding for new projects, renovations, or expansions. Casinos need to maintain good relationships with lenders and investors due to the capital-intensive nature of their operations.

6)Liquidity:
-Current Ratio: Generally above 1.0, but may vary depending on the operational scale and investment cycle. This ensures the ability to cover short-term obligations.

-Quick Ratio: A ratio above 1.0 is preferable to account for the high-value cash flows typical in the casino industry.

7) Revenue Stability:
-Volatility Consideration: Casinos should have a strategy to manage revenue fluctuations due to economic cycles, seasonality, and competition. Financial stability can be assessed by looking at historical revenue trends and profitability.

8) Capital Expenditure (CapEx) Efficiency:
-CapEx-to-Revenue Ratio: Evaluates how effectively a casino uses capital expenditures to generate revenue. High CapEx efficiency indicates good management of investment in facilities and amenities.

These criteria will help assess a casino’s capital structure, accounting for the unique financial dynamics and operational needs of the industry.

1 SGD = 3.29 MYR... 3.10 mari mari!
1 USD = 4.30 MYR