Las Vegas Casinos Seek Road to Recovery After Year-Long Slump

Everything is going in a better direction, and there’s a lot of pent-up demand,” gaming consultant Debi Nutton told the Las Vegas Review-Journal.


https://www.casino.org/news/las-vegas-casinos-seek-road-to-recovery-after-year-long-slump/

Net profit of genT :
2015 : + RM 1272 millions
2016 : + RM 2120 millions
2017 : + RM 1444 millions
2018 : + RM 1365 millions
2019 : + RM 1995 millions
2020 : - RM 1024 millions ( loss)
2021E : Public Bank → + RM 1215m, HLIB → + RM 1486m
2022E : Public Bank → + RM 1891m, HLIB → + RM 2011m

Net profit of genT for the last 10 years : RM 1,272m ( year 2015) to RM 3,983m ( year 2012) , with total RM 19,555m. GenT just recorded merely net loss of RM 1024m in FY2020.

The worst is over. genT made net loss of RM 786m in 2Q20, but able to make net profit of RM 25m in 4Q20.

Do you really think genT can brankrupt ??

The Spanish flu, lasting from February 1918 to April 1920, infected 500 million people and killed at least 20 to 50 million people.

Post pandemic, Dow Jones jumped by 510% from 1920-1929, increased from 60 to 370.

History always repeats itself !!

纽约，云顶赌场，重开业，不怕你赢钱，就怕你不来，我赢了还是输了

https://www.youtube.com/watch?v=o_0LU2dy-xM


Resorts World New York City , Mar 17, 2021

More Than 430 Million Shots Given: Covid-19 Tracker

The biggest vaccination campaign in history is underway. More than 430 million doses have been administered across 133 countries, according to data collected by Bloomberg. The latest rate was roughly 10 million doses a day.

In the U.S., the latest vaccination rate is 2,248,285 doses per day, on average. At this pace, it will take another 5 months to cover 75% of the population.


https://www.bloomberg.com/graphics/covid-vaccine-tracker-global-distribution/

Why Israel is partying like it’s 2019, while most of Asia is stuck in 2020


Tel Aviv’s famous nightclubs are getting ready to reopen thanks to a world-leading vaccination drive, giving the rest of us a glimpse of a post-Covid future


https://www.scmp.com/week-asia/health-environment/article/3126233/why-israel-partying-its-2019-while-most-asia-stuck

Positive test rate drops to 2%, virus transmission rate dives


A report by a military task force advising the Health Ministry said the transmission rate, which measures how many people each virus carrier infects on average, was 0.68 on Thursday, indicating that the outbreak was subsiding. It has been declining despite Israel’s economy mostly reopening.

https://www.timesofisrael.com/positive-test-rate-drops-to-2-virus-transmission-rate-dives/

World War II was a global war that lasted from 1939 to 1945.

The war news was consistently bad, but nevertheless stocks worked higher.

Bull Market Began In Darkest Days Of World War II.

History always repeats itself

Genting Berhad’s Resorts World Las Vegas to be loss making in initial years: Nomura


Modelling in revenue estimates for the coming years based on the gaming data of 24 nearby casinos located on and around the Las Vegas Strip, Nomura’s Tushar Mohata and Alpa Aggarwal estimate revenue of US$350 million and EBITDA of US$82 million in 2022, rising to US$477 million and US$112 million respectively in 2023.


https://www.asgam.com/index.php/2021/03/19/getting-berhads-resorts-world-las-vegas-to-be-loss-making-in-initial-years-nomura/

RELATED PARTY TRANSACTIONS GENTING MALAYSIA BERHAD ("GENM") EQUITY INJECTION VIA SUBSCRIPTION OF UP TO USD20 MILLION OF SERIES L PREFERRED STOCK OF EMPIRE RESORTS, INC. ("EMPIRE")


Since reopening on 9 September 2020 with reduced capacity, operating performance at RWC had been ramping up with total GGR in October 2020 recovering to 84% of the level recorded in October 2019. Nevertheless, the implementation of limited operating hours for casinos statewide since November 2020 in line with government directives amid the prevalence of the COVID-19 pandemic have posed headwinds to its recovery. Despite this, RWC’s total GGR in November and December 2020 were at approximately 60% of the level registered in the corresponding periods last year.


https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=112968&name=EA_GA_ATTACHMENTS

We Could See a Casino in Queens Opening Sometime Soon


https://www.bestuscasinos.org/news/we-could-see-casino-queens-opening-sometime-soon/

Crowds swarm the Las Vegas strip as casinos reopen


The outlet said thousands of guests were seen “shoulder-to-shoulder” or in close proximity to one another inside casinos and stores, walking the strip and lining up outside walk-up bars.


“I took a few pictures to send to my son in Chicago, and I said, ‘I can’t believe there are this many people out,’” Las Vegas resident Laura Amendala told the outlet. “I couldn’t even get into the Bellagio parking lot to see the botanical garden. It was filled to capacity.”


https://thehill.com/changing-america/well-being/543211-crowds-swarm-the-las-vegas-strip-as-casinos-reopen

Las Vegas Casino, Hospitality Workers Can Get Vaccinations


https://www.usnews.com/news/best-states/nevada/articles/2021-03-11/las-vegas-casino-hospitality-workers-can-get-vaccinations

According to REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020, page 126

The investment in shares in foreign operations includes a significant investment in a life sciences corporation which develops novel treatments and diagnostics for Alzheimer’s disease and other neurodegenerative diseases amounting to RM720.1 million (2019: RM610.4 million). There are no indicators of impairment of the investment based on the development of the planned study, the adequacy of funding to perform the planned study, and by comparing the carrying amount per
share to the price of the shares issued in 2020. During the current financial year, the shareholding of this life sciences associated company has been reduced from 20.6% to 20.3% subsequent to the subscription of shares by a third party. A gain on changes of shareholding of associate amounting to RM67.3 million was recognised in income statement.



Anyone has idea how to calculate the current value of this life sciences corporation ( TauRx Pharmaceuticals Ltd ) ?

U.S. tops 100 million Covid vaccine doses administered, 13% of adults now fully vaccinated

Of those 65 and older, more than 32% have been fully vaccinated and over 61% have received at least one dose, according to the CDC. That’s notable because about 80% of deaths caused by Covid-19 in the U.S. have been among people 65 and older.

The administration has gradually accelerated the pace of vaccinations since Biden took office. The White House originally sought to administer 1 million shots per day, which some public health specialists criticized as a low target. On Friday, according to the CDC, the U.S. administered a record 2.9 million shots.


https://www.cnbc.com/2021/03/12/us-tops-100-million-covid-vaccine-doses-administered-13percent-of-adults-now-fully-vaccinated.html

Norwegian Cruise stock rallies after signs of 'robust' pent-up demand for future cruises


"The company is experiencing robust future demand across all brands with the overall cumulative booked position for the first half of 2022 significantly ahead of 2019's record levels, with pricing in line when excluding the dilutive impact of [future cruise credits]."


https://www.marketwatch.com/story/norwegian-cruise-stock-rallies-after-signs-of-robust-pent-up-demand-for-future-cruises-2021-03-11?siteid=yhoof2

Fully vaccinated people can gather without masks, CDC says


https://abcnews.go.com/Health/wireStory/fully-vaccinated-people-gather-masks-cdc-76322514

IAG Japan discusses the race to develop integrated resorts in Japan

https://www.youtube.com/watch?v=fmHpMkb9ZR0

Sands to sell its Las Vegas properties for $6.25 billion as it shifts focus to Macao, Singapore

Sands is fiercely lobbying for a downstate casino license to build an integrated resort in New York City. Expanded gaming in the metropolitan area is a market estimated at $6 billion to $10 billion in gaming revenue alone.


https://www.cnbc.com/2021/03/03/las-vegas-sands-to-sell-its-las-vegas-properties-for-6point25-billion.html

Resorts World to get celebrity favorite wine bar


https://www.reviewjournal.com/entertainment/food/resorts-world-to-get-celebrity-favorite-wine-bar-2291600/

Net profit of genT :
2015 : + RM 1272 millions
2016 : + RM 2120 millions
2017 : + RM 1444 millions
2018 : + RM 1365 millions
2019 : + RM 1995 millions
2020 : - RM 1024 millions ( loss)
2021E : Public Bank → + RM 1215m, HLIB → + RM 1486m
2022E : Public Bank → + RM 1891m, HLIB → + RM 2011m

Net profit of genT for the last 10 years : RM 1,272m ( year 2015) to RM 3,983m ( year 2012) , with total RM 19,555m. GenT just recorded merely net loss of RM 1024m in FY2020.

If compared with Melco Resorts, main rival of Yokohama casino bidder, Melco Resorts made net profit of USD 315m in 2017, net profit of USD 351m in 2018, net profit of USD 373m in 2019, but recorded huge net loss of USD 1263m in 2020.

Share price of genT in last ten years :
Highest ( 13/01/2011) : RM 11.98
Lowest ( 19/03/2020) : RM 2.91

Conclusion :
1)The business model of genT is very stable and solid if compared with other casino operators.
2) The worst is over. genT made net loss of RM 786m in 2Q20, but able to make net profit of RM 25m in 4Q20. The management team already learned the precious experience and prepare for the next pandemic or financial crisis.

Suggestion:
1)Prepare your bullets ( including withdrawal of fixed deposits) and aim this white elephant at around RM 3.8 to RM 4.0 if another dip happens. Hold it for 5 to 7 years and enjoy dividend yield of 4% to 7.5% . I won't surprise genT will give 30sen dividend after Resorts World Las Vegas starts making profit.

2) Reinvest all your dividends in genT. genT definitely will grow for the next 5 to 7 years. The powers of growth are from RWLV, Skyworlds Theme Park, Genting Americas ( RWNYC and RW Catskills), IPO of Bio-science, and possible Yokohama casino. Enjoy the power of compound interest and snowball effect.

Postive key points from announcement today:

1)The Group achieved adjusted EBITDA of RM350.3 million, despite the Group recorded LBT and net loss of RM2,137.5 million and RM2,361.5 million respectively

2) For 4Q20, the impact to the Group’s earnings was mitigated by higher hold percentage in the mid to premium players segment, coupled with lower operating expenses as well as a reduction in payroll and related costs due to lower headcount. The Group registered adjusted EBITDA of RM130.8 million

3) Resorts World Casino New York City (RWNYC) had registered approximately the same level of gross gaming revenue as 4Q19

4) Genting SkyWorlds, is targeted to open by the middle of 2021. The theme park is a key growth initiative for the Group in Malaysia.

Seventy percent of the state’s registered voters support converting the Resorts World Aqueduct and MGM Empire City Yonkers video slots parlors into full-scale casinos,

A recent study conducted by the New York State Gaming Commission estimated that opening three new downstate casinos — which include the conversions of Aqueduct and Yonkers and opening a new casino in Manhattan — could generate between $420 million and $630 million in revenues per year.

Fifty one percent of voters said mobile sports betting should be operated through the Aqueduct and Yonkers slots parlors as opposed to 21 percent who said just through the four upstate casinos, with the rest not stating a preference.

genS declared 1 sen of dividend = SGD 120,648,000 x RM 3.06 = RM 369,182,880
genT owns 52.7% of genS
genT will get RM 369,182,880 x 52.7% = RM 194,559,378


genP declared 15 sen of dividend = RM 0.15 x 897m of share = RM 134,550,000
genT owns 55.4% of genP
genT will get RM 134,550,000 x 55.4% = RM 74,540,700

Total dividend = RM 194,559,378 + RM 74,540,700 = RM269,100,078

Total issued share of genT = 3877m

Dividend per share = RM269,100,078 ÷ 3877m = RM 0.0694

genT will get around 7sen per share of dividend, just from dividend from genS and genP

NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : FUND RAISING HIBISCUS PETROLEUM BERHAD ("HIBISCUS PETROLEUM" OR "THE COMPANY") ALLOTMENT AND ISSUANCE OF UP TO 2,000,000,000 NEW ISLAMIC CONVERTIBLE REDEEMABLE PREFERENCE SHARES BY WAY OF PRIVATE PLACEMENT EXERCISE TO RAISE UP TO RM2.00 BILLION ("PRIVATE PLACEMENT OF CRPS")

On behalf of Hibiscus Petroleum, HLIB and CIMB wish to announce that the Company had on 22 February 2021 sought the approval from Bursa Securities for an extension of time of six months from 22 March 2021 until 21 September 2021 for the Company to complete the implementation of the Private Placement of CRPS.



This announcement is dated 22 February 2021.

Britain to cover COVID-19 vaccine side-effects under damages scheme


Under the scheme, individuals are entitled to a lump sum capped at 120,000 pounds ($161,676) if they can prove to have been seriously disabled as a result of a vaccination.



https://www.reuters.com/article/us-health-coronavirus-britain-vaccines/britain-to-cover-covid-19-vaccine-side-effects-under-damages-scheme-idUSKBN28D2WF

Singapore to give financial aid to people affected by vaccine


A person will receive S$225,000 in case of death or permanent severe disability as a result of the Covid-19 vaccination.


https://www.thehindubusinessline.com/news/world/singapore-to-give-financial-aid-to-people-affected-by-vaccine/article33690555.ece

PFIZER AND BIONTECH SUBMIT COVID-19 VACCINE STABILITY DATA AT STANDARD FREEZE TEMPERATURE TO THE U.S. FDA


Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) today announced the submission of new data to the U.S. Food and Drug Administration (FDA) demonstrating the stability of their COVID-19 vaccine when stored at -25°C to -15°C (-13°F to 5°F), temperatures more commonly found in pharmaceutical freezers and refrigerators.


https://www.pfizer.com/news/press-release/press-release-detail/pfizer-and-biontech-submit-covid-19-vaccine-stability-data

Pfizer-BioNTech vaccine sharply reduces symptomatic Covid-19 in the real world, Israeli researchers say


The rate of symptomatic Covid-19 -- meaning people who were infected with the coronavirus and felt sick -- decreased by 94% among people who received two doses of the vaccine, according to a press release from Clalit. The rate of serious illness decreased by 92%.


the findings are consistent with data from Pfizer's own vaccine trial, which found that the vaccine conferred 95% protection against symptomatic Covid-19.



https://edition.cnn.com/2021/02/15/health/pfizer-biontech-covid-vaccine-reduces-infections-israel-study-intl/index.html

GEN Singapore expects China crackdown to hurt VIP biz


Management at casino operator Genting Singapore Ltd is doubtful its VIP casino segment will return to pre-pandemic levels of business, due to factors including mainland China’s crackdown on what the authorities there term “cross-border gambling” by its citizens.



https://www.ggrasia.com/gen-singapore-expects-china-crackdown-to-hurt-vip-biz/

As Resorts World opening nears, the job applications flood in

As of last week, 85,000 applications had been received for various open positions at Resorts World, the $4.3 billion project on the north end of the Strip, just south of Circus Circus, expected to open this summer.


https://vegasinc.lasvegassun.com/business/gaming/2021/feb/02/resorts-world-wades-into-vast-pool-job-applicants/

In week after 2nd Pfizer vaccine shot, only 20 of 128,000 Israelis get COVID



Israel’s Maccabi Healthcare Services revealed Monday that only 0.015 percent of people are getting infected in the week after receiving their second shot.

“These are very good results, and if it continues this way it could even be that the vaccine is more effective than Pfizer thought it would be based on clinical trials,”

Ekka Zohar also noted that she found that none of the 20 vaccinees was hospitalized or suffered from a fever higher than 38.5 degrees. That may be an indicator that the vaccine prevents serious illness even when people are infected,



https://www.timesofisrael.com/week-after-2nd-pfizer-vaccine-shot-only-20-of-128000-israelis-get-covid/

To value investor,

The Net Tangible Asset ( NTA ) of genm is RM 2.71 ( 3Q2020). But genm really just worth RM 2.71? Let me give you some hints.

Hint 1: What are Net Tangible Assets (NTA)?
Net tangible assets are calculated as the total assets of a company, minus any intangible assets such as goodwill, patents, and trademarks, less all liabilities and the par value of preferred stock. In other words, its focus is on physical assets such as property, plant, and equipment, as well as inventories and cash instruments.

Hint 2 : Annual report 2019 --page 90
Property, plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment loss where applicable. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Cost also includes borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset.

Hint 3: Annual report 2019 --page 119
Net book value of PPE at 31 Dec 2019
= cost of PPE - Accumulated depreciation - Accumulated impairment losses
= RM 24,037.4m - RM 7,297.9m - RM 118.6m
= RM 16,620.9m

Hint 4: Annual report 2010--page 113, and Annual report 2019 --page 167
Please compare the net book value of properties in 2010 and 2019. They are not much different. But the real estate price in Malaysia, UK and US increased almost 100% in 10 years.

Hint 4 : Annual report 2010 --page 3
On 15 October 2010, we completed our acquisition of casino businesses in the UK from Genting Singapore PLC for a total cash consideration of £351.5 million. We now own the largest number of casinos in the UK with 46 casinos as at 31 December 2010

Hint 5 : Annual report 2019 ---page 83
Disposal of Coastbright Limited (“Coastbright”), an operator of Maxims Casino in Kensington, London.On 21 March 2019, Genting UK Plc, dispose of its entire equity interest in Coastbright for a total net cash consideration of GBP33.7 million (equivalent to approximately RM180.3 million). The Group realised a gain of approximately GBP22.7 million (equivalent to approximately RM123.8 million) from the disposal.

So, do you really think genm just worth RM 2.71?

@newbie2019

I am 43,interest in investment since Asia Financial crisis 1998. I still remembered my Form 6 classmate asked me to buy Maybank with less than RM1 only.

After all my research, I believe GenT will help me to achieve financial free with the lowest risk.

GenT is my only portfolio. I will achieve my goal if genT more than RM 10. For the next 5 to 10 years, I will spend at least 2 hours everyday to focus in genT and learn other investment skills. I definitely will sell all my genT if I think management team make the serious mistake which might hurt value of genT badly.

Message to young value investor :

Genting Bhd is a deep value stock. It is worth at least RM 10 per share. Long term investment in genT will provide a significant safety of margin if you buy genT at around RM 3 to 4.

GenT share price fluctuated between RM 3 to RM 12 , in 7 to 10 years intervals. GenT share price is very sensitive to bad or good economic/political situations. Remember, genT still able to make profit during Asia financial crisis, internet bubble, SARS, global financial crisis and US-china trade war.

If you still young, try to find a way to make a big fund as early as possible, may be at least RM 300,000. This is the hardest part.

Use all your fund to buy genT at RM 3 to RM 4 when the chance comes. Keep it until RM 10 to RM 12 then sell all of them. Your fund should be worth at least RM 1 million. Keep all of these money in FD or bonds, and wait for the second chance.

When the second chance comes, use all of your fund to buy genT at RM 3 to RM 5, then sell it at RM 12 to RM 15. Your fund should be worth at least RM 3 million.

Finally, you should diversify all these money in high dividend stocks or REITs which will give at least 5% dividend. That means you will have at least passive income of RM 150,000 every year.

This is a very simple way to help you retire early, but not easy to practise. For the following 10 to 20 years, you just focus in genT and make sure the management team will not make crazy or funny decisions which will destroy the value of genT. You need to read a lot and do some research. You need to convince yourself regarding the true intrinsic value of genT.

Jeff Bezos, founder, chairman, CEO, and president of Amazon is the richest man in the world. Once in a meeting with Warren Buffett, he asked America’s most prolific investor, your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?”

Warren Buffett responded Jeff by saying, “Because nobody wants to get rich slow.”

Malaysia casino rebound amid local play: Nomura


https://www.ggrasia.com/malaysia-casino-rebound-amid-local-play-nomura/

Resorts World Taking Shape (Updated)


https://www.thevegastourist.com/blog/resorts-world-taking-shape/

Hibiscus Petroleum’s fundraising signals positive outlook for O&G


Pereira declined to confirm whether the group was bidding for ExxonMobil’s assets, but said Hibiscus was already in talks with several asset owners in Southeast Asia.

He added: “Looking at the price projection and the number of opportunities in the market right now, our target would be to bid for assets over the next six months, and then they will take whatever time it takes for them to decide, whether we are successful or not.


https://www.theedgemarkets.com/article/hibiscus-petroleums-fundraising-signals-positive-outlook-og

These are copy paste from 27 pages of “announcement” documents from Hibiscus website regarding CRPS:

the CRPS holders are provided with an option to convert all or part of their CRPS into new Hibiscus Shares at any time during the Conversion Period. --page 17

Conversion of Islamic Convertible Redeemable Preference Shares to Ordinary Shares on 02/12/2020,
No. of shares issued 24,149,966
Issue Price Malaysian Ringgit (MYR) 0.480


Look like some CRPS investors started profit taking already.

Hibiscus Petroleum on acquisition mode


“At the moment, Hibiscus is producing 10,000 barrels of oil per day and the target acquisition could be three to four times of our current size, ” he said.



https://www.thestar.com.my/business/business-news/2020/11/24/hibiscus-petroleum-on-acquisition-mode

Hibiscus just able to raised RM 203.6 millions


According to CRPS announcement on 09/09/2020, page 9,

" The estimated expenses for the Proposals, which include placement fees, professional fees, regulatory fees and other incidental expenses are estimated to be RM62.50 million. "



That means RM 203.6m - RM 62.50m = RM 141.1m

Hopefully the expenses of CRPS will be less than RM 62.5 millions

Pfizer, BioNTech to seek emergency COVID-19 vaccine nod on Friday


“I am confident that if everything goes well, and we have a very organized vaccine supply, that we could have a normal summer and winter 2021,” Şahin said.


https://www.fiercebiotech.com/biotech/pfizer-biontech-to-seek-emergency-covid-19-nod-friday

QR date for genm and genT : 26 Nov

U.S. states race to buy ultra cold vaccine freezers, fueling supply worries


The specialized freezers required by Pfizer's vaccine can cost $5,000 to $15,000.

Moderna Inc is close to releasing efficacy results for its similar vaccine, which requires an easier to accommodate storage temperature of minus 20 degrees Celsius (minus 4°F).


https://www.thestar.com.my/news/world/2020/11/14/us-states-race-to-buy-ultra-cold-vaccine-freezers-fueling-supply-worries

NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS) : FUND RAISING HIBISCUS PETROLEUM BERHAD ("HIBISCUS PETROLEUM" OR "THE COMPANY") (I) PROPOSED PRIVATE PLACEMENT OF CRPS; AND (II) PROPOSED AMENDMENTS (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

On behalf of the Company, HLIB and CIMB wish to announce that the first tranche of the Islamic CRPS (“CRPS”) has been closed today with a sole allocation of 6,600 CRPS to Dr. Kenneth. Accordingly, the first tranche of CRPS (“CRPS-T1”) will not be listed. The sole allocation of CRPS-T1 to Dr. Kenneth is primarily to close CRPS-T1 in accordance with the terms of the CRPS before proceeding with the subsequent tranche.



HLIB and CIMB, on behalf of the Company, also wish to announce that the Board has fixed the conversion price for the second tranche of the CRPS (“CRPS-T2”) at RM0.48 per CRPS, representing a premium of approximately 4.14% to the 5-day VWAMP of Hibiscus Petroleum Shares up to and including 6 November 2020 (being the market day immediately before the price-fixing date on 9 November 2020) of RM0.4609. The utilisation of the proceeds of the CRPS, including CRPS-T2, will be for the acquisition of equity interests in producing upstream oil and gas assets in the South East Asia region through international bidding processes.



The issuance of CRPS-T2 will be sized to minimise dilutive effects to existing shareholders, taking into account the requirements of financial institutions that are supporting the debt component of various bids being contemplated for submission, by the Company. Notwithstanding the above, the Board and the Joint Bookrunners in their absolute discretion may decide the size of the CRPS-T2 upon completion of the book-building exercise.



The book-building exercise for the CRPS-T2 shall commence on Monday, 9 November 2020, with proceeds to be received by Monday, 16 November 2020.



This announcement is dated 9 November 2020.

Trump still leading in swing states :
Wisconsin : 10 votes
Michigan : 16 votes
Pennsylvania : 20 votes
North Carolina : 16 votes
Georgia : 16 votes

total : 78 votes

212 + 78 = 290

Sands China reveals US$562 million loss in 3Q20 but positive EBITDA for Singapore’s Marina Bay Sands


There was also improvement at Marina Bay Sands in Singapore, which returned to positive Adjusted EBITDA of US$70 million following an EBITDA loss of US$113 million in the second quarter. Net revenues at MBS were down 64.6% year-on-year to US$281 million with casino revenue of US$197 million, compared with US$23 million and US$7 million respectively in 2Q20.


https://www.asgam.com/index.php/2020/10/22/sands-china-reveals-us562-million-loss-in-3q20-but-positive-ebitda-for-singapores-marina-bay-sands/

Resource from HLIB

Q&A on the CRPS ( 2 )

8) What would happen to investment returns if the price of the proposed asset acquisition exceeds RM2bn?

Hibiscus intends to finance any amount exceeding RM2bn via debt. Hence, common shareholders would potentially have a higher net IRR on its investment as the 12% IRR hurdle rate is based on project IRR (e.g. if total acquisition cost: RM3bn, D/E: ½, CoD: 4%, its equity IRR would be at least 16% as the hurdle rate for project IRR is
12%.)

9) What is the long-term oil price assumption used on its investment decisions?

Hibiscus’ has a Brent oil price forecast of USD40/bbl for CY20 and c.USD45-50/bbl for CY21-25. The long-term Brent oil price forecast is based on Brent oil futures from the Intercontinental Exchange (ICE).

10) What is the estimated economic life of assets acquired?

While Hibiscus would need to acquire a producing asset, we believe that the new acquisition would have a moderate to long useful life. Hibiscus would not acquire any asset which is close to the end of its economic life.

11) Would Hibiscus be able to successfully deliver on its new asset, in the event that it successfully utilizes all of its proceeds for asset acquisition?

Hibiscus has had a strong record with regards to the operations of PSCs. This can be seen through the strong operational performance of both its Anasuria and North Sabah assets. Hibiscus has managed to maintain an opex/bbl of below USD15/bbl for its North Sabah field and below USD20/bbl for its Anasuria field in FY20 despite challenging economic conditions. Hibiscus has also won 3 awards from the Malaysia Upstream Awards 2020: (i) Best Emerging Production Arrangement Contract, (ii) Gold award for wells excellence category and (iii) Bronze award for drilling excellence category. While we cannot assume that the new asset would do just as well Anasuria and North Sabah, its track record for the aforementioned fields can possibly provide some good assurance towards the operational performance of its new assets.

12) What is management’s commitment towards the take-up of the CRPS?

Dr. Kenneth (CEO & Founder) has pledged to subscribe a minimum of 8m and up to 50m of CRPS at an issue price of RM1.00 per CRPS. We believe that the allotment to Dr. Kenneth is expected to strengthen the alignment of interests between the management and shareholders of the Company.

Resource from HLIB

Q&A on the CRPS ( 1 )

1) Does the CRPS exercise require EGM approval from common shareholders?

Yes. Targeting approval in early November.

2) Would there be another EGM on asset acquisition?

Yes. Another EGM would be held for the approval of the proposed acquisition.

3) Would the CRPS holders be able to vote against any asset acquisition and if they vote no, would they be able to recoup their money at a fixed interest rate of 4% p.a.?

Only common shareholders will have voting rights with regards to asset acquisitions. CRPS holders would not have any voting rights on the said matter. CRPS holders would only be able to re-coup its investments at an interest rate of 4% p.a. if the proceeds raised are not utilized for asset acquisition. We believe that there would be
adequate and fair check and balances as we believe that common shareholders would not support an asset acquisition which they deem to be value dilutive. Any unutilized proceeds raised would be paid back to CRPS holders at the aforementioned annual interest rate.

4) In the event where they (Hibiscus) do not utilize the proceeds from the CPRS, how are they going to raise the money for the interest due from the CRPS?

The proceeds would be first parked under an Islamic trust account upon the subscription of the CRPS. If the Company raises RM2bn and fails to acquire any asset after 2 years, Hibiscus would have to repay c.RM80m in interest (4% p.a.) back to CRPS holders. Part of this interest due would be generated from the Islamic trust account while the balance would have to come from its internal cash reserves.

5) Why should existing shareholders vote to approve the CRPS exercise?

The current conversion price of RM0.66 for the first tranche of CRPS is c.32% higher than the yesterday’s closing price. Hence, this may serve as a near term benchmark pricing and if the assets were to perform, the upside for common shareholders could be higher.

6) Wouldn’t potential CRPS holders wait for the second tranche, with the possibility that they would be able to get their CRPS at a lower conversion price?

The management is confident that it has already identified the assets that it would like to acquire and it will fall within its investment hurdle rates. The management believes that the acquisition would be value accretive for CRPS holders despite the current conversion premium and there would still be a lot of interest with regards to the
subscription of the CRPS. Investors might miss out on the opportunity to invest in the CRPS if the first tranche of the CRPS is fully subscribed (as there will be no second tranche if this happens).

7) How big would the asset size be and how many assets are Hibiscus looking to acquire?

Hibiscus has identified 1-3 assets with a combined value of RM2bn or more (asset will be financed through debt for any value exceeding RM2bn), which is at least c.6x the combined acquisition value of North Sabah and Anasuria (c.RM320m).