3 people like this.

10 comment(s). Last comment by Cheah5555 1 month ago

Income

10,298 posts

Posted by Income > 1 month ago | Report Abuse

Ini kalilah

Jack Khan

1,236 posts

Posted by Jack Khan > 1 month ago | Report Abuse

With Trump American first I don't think Genting can get the license solo! They need some partnership to be able to get the license. To say America is not corrupt is overstatement.

Jack Khan

1,236 posts

Posted by Jack Khan > 1 month ago | Report Abuse

Now USD is still high if FED reduces interest rate ringgit might be stronger and expected 20% depreciation of asset value.

dragon328

1,881 posts

Posted by dragon328 > 1 month ago | Report Abuse

@Jack Khan, you are probably right there.

As Genm owns 100% equity stakes in Resorts World New York City at Queens which I believe will house the new New York full casino when the new license is awarded, the capex required will not be too big, reportedly at around USD1.0 billion, half of which is for the bid bond.

Genting group has already raised sufficient fund for the US$500 million bid requirement, it may probably spend another USD500m to upgrade the facilities at RWNYC in order to roll out full casino products.

To enhance its bid, I do not rule out the possibility of GNM robing in a local partner to win one of the full casino license.

dragon328

1,881 posts

Posted by dragon328 > 1 month ago | Report Abuse

Agreed that US dollars are high against ringgit now, and it may come down later this year when US Fed starts cutting rates.

FX only affects the paper accounting value, so I won't bother much. More importantly it is for Genm to win one of the 3 casino licences in New York.

ahbah

6,041 posts

Posted by ahbah > 1 month ago | Report Abuse

All fiat currencies including USD have ZIRO value as they are created from nothing and as such they have ZIRO value !!! 😁😁😁

Posted by Permutation > 1 month ago | Report Abuse

@Dragon328,
Genting or Genting Malaysia ? What is your take? tq

dragon328

1,881 posts

Posted by dragon328 > 1 month ago | Report Abuse

@Permutation, Genm has more near term catalysts while Genting is more undervalued and has greater long term upsides.

Genm for one announced a better than expected quarterly result for Q4 FY2023 while Genting disappointed with a weak result dragged down by impairments at Genting Singapore.

While the outlook for both Genting Highlands and Genting Singapore are bright as both Malaysia and Singapore have allowed visa free travels from China and India, I am not sure if there will be more impairments at Genting Singapore in coming quarters.

Next, Genm will have a good chance to dispose off its Maimi land in 2H 2024 when US Fed starts cutting rates, that will be a good catalyst to Genm share price, I believe.

New York city council will be launching the RFP to solicit interests for 3 new full casino licenses and Genm shall stand a good chance to clinch one of the licenses. As I calculated in my article, the potential from a new casino license in New York is huge and that will be another catalyst to Genm.

Genting long term is still very good, underpinned by Sentosa 2.0 expansion by Genting Singapore. I expect Genting Singapore earnings to expand by at least 40% to achieve EBITDA of close to SGD1.8b - 2.0 billion by 2030 when the expansion completes.

Whether Genm or Genting is better, I will leave it to you to decide one that suits your investment horizon. I have both.

Posted by Permutation > 1 month ago | Report Abuse

@dragon328, Thank you for your analysis. Appreciated.

Cheah5555

163 posts

Posted by Cheah5555 > 1 month ago | Report Abuse

Dragon328, a very detailed article, thank you.

Post a Comment
Market Buzz