Earnings Support from UK Operations

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: TA

Price Call: HOLD

Target Price: 4.57

Liberalisation game on in the New York state

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: ALLIANCE

Price Call: BUY

Target Price: 4.26

RHB cuts Genting to 'market perform'

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: RHB

Price Call: HOLD

Target Price: 4.20

RHB Research downgraded Genting Malaysia to market perform, citing restricted share price movement due to hitches in the gaming-to-power conglomerate's expansion plans.

"We downgrade our call on Genting Malaysia to market perform (from outperform) as we believe the slower progress of legalisation and hitches encountered in its expansion plans into new geographical areas would cap share price movement at this juncture," the broker said in a research note on Friday.

RHB also cut Genting's sum-of-parts (SOP) based fair value to RM4.20 from RM4.35 after revising its discounted cash flow parameters for Malaysia and the UK.

RHB added that potential catalysts which could help re-rate the stock would be progress on the legalisation of gaming in New York and Miami and sustainable improvements in Genting UK's operations. -- Reuters

Genting Malaysia - RWNY ' Chugging along nicely BUY

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: AMMB

Price Call: BUY

Target Price: 4.30

- Genting Malaysia Bhd (GenM) remains a BUY with an unchangedRNAV-based fair value of RM4.30/share. We continue to like the group for itsgrowing overseas exposure, which would underpin profit growth and undemanding valuations. 

- GenM is currently trading at FY12F PE of 13.9x and FY13FPE of 12.6x. In comparison, according to Bloomberg, the simple average FY12F PEof the Macau casino companies is 15.4x and 12.6x for FY13F (ex-Nagacorp).Genting Bhd is presently trading at 13.1x FY12F EPS and 12.1x FY13F EPS whilesister company, Genting Singapore PLC's FY12F and FY13F PEs are at 15.8x and13.6x, respectively. 

- We visited GenM's 'Resorts World New York (RWNY)' recently. Based on numbers released byNew York Lottery, RWNY is the market leader in the racino industry in New York,accounting for 45% of the share of credits played in the first three months ofthe year. Empire City had a market share of 27%.

- We forecast RWNY to record net revenue of RM646mil and EBITDAof RM129mil for FY12F. We are now assuming an average daily win ofUS$350/machine for FY12F, versus US$330/machine previously but lower non-gamingrevenue. RWNY is estimated to account for 5% of GenM's FY12FEBITDA.   

- Compared to Empire City Casino at Yonkers Raceway, we findRWNY's location to be better as it is closer to the city. From the city centre,it takes about 20 minutes to drive to RWNY, which is in Queens. In comparison,it would take more than half an hour to go to Empire City. 

- RWNY's name recognition is still weak. Most taxi drivers recogniseRWNY as its old name, 'Aqueduct'. We understand that RWNY would be stepping upon its advertising and promotional initiatives to improve its branding. 

- RWNY's clientele are mainly locals. During the day, mostof the players consist of retirees or senior citizens. Asians comprise 25% to30% of customers. The younger crowd comes in later at night.  

- Going forward, casino patronage at RWNY is expected to improvedue to the warmer weather. We understand that the weakest season is winter dueto the cold weather and shift in consumer spending towards retail. The bestperiod is in summer, i.e from July to August. 

- The seasonal trend has already been reflected in the improvingweekly revenue numbers reported to the New York Lottery Association. Creditsplayed at RWNY rose 4.6% in the week ended 1 April 2012 from the previous week,while average daily wins climbed 12.9% to US$395/machine. 

Source: AmeSecurities 

Genting Malaysia: Maintain Hold - Save this ace for year end

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: MAYBANK

Price Call: HOLD

Target Price: 4.00

2013 to be more exciting than 2012. Genting Malaysia's (GENM) existing operations remain resilient. Although its potential expansions into the USA are exciting to the tune of billions of USD in terms of gross gaming revenue (GGR) (please see pages 2 and 3), they are unlikely to materialise until 2013 at earliest. Its potential expansion into Vietnam is more likely to materialise sooner but is unlikely to significantly boost its earnings. Maintain Hold call and ex-cash DCF-based TP of RM4.00.

Click here for full report

Source: Maybank Research - 17 April 2012

Genting Malaysia - Keeping tabs on its overseas ventures

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: CIMB

Price Call: HOLD

Target Price: 4.10

Target RM4.10

We see no dearth in news flow on Genting Malaysia's overseas operations. While there have been some positive developments in its US ventures recently, it will take a while before these developments translate into meaningful earnings contribution for the company. We see few meaningful near-term earnings catalysts that could drive a further share price rerating. We remain Neutral with an unchanged SOP-based target price. Genting Bhd, which offers more near-term growth catalysts, is our preferred pick in the Malaysian casino gaming space.

Source: CIMB Daybreak - 05 April 2012, Full PDF Report

Genting Malaysia - Lawmakers in NY to allow seven casinos? BUY

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: AMMB

Price Call: BUY

Target Price: 4.30

- According to news reports, lawmakers in New York agreed toamend the state constitution to allow up to seven casino operators lastweek. 

- Apart from Genting Malaysia Bhd (GenM), other well-financegroups vying for the licence include the Las Vegas operators and Indian tribalgroups, all of whom have hired their own lobbyists and consultants.  

- According to the same article, expectations are that theseven full casino licences would go to the highest bidders though the 'TimesUnion' report said that New Yorkers seem equally opposed and supportive basedon some recent polls.

- Details on the seven casinos for New York including thelocations will reportedly be determined only in 2013. But New York can legalisecasinos if two successive legislatures enact bills and voters approve thelegislation.

- We view this development positively as the legislativeprocess in New York seems to be in favour of liberalising the casino industry.It appears that compared to Miami, there is less negative newsflow on thesetting up of a full-fledged casino in New York. 

- We reckon that GenM would need a full-fledged casinolicence if it were to proceed with the US$4bil re-development of the JacobJavits Convention Center, which would also involve the construction of hotels,museums and residential properties. 

- GenM has said that it would be working closely with theEmpire State Development Corporation of New York to negotiate terms of theproject with a view of entering into a binding Memorandum of Understandingbefore or on 30 November 2012.   

- We believe that GenM with its net cash of RM967.1mil as atend-FY11 would not have problems bidding for the casino licence in NewYork. 

- However, we reckon that GenM would prefer to have anexclusive casino licence in New York instead of sharing the casino industrywith six other players (assuming the group wins the casino licence, ifany).   

- We maintain a BUY on GenM for its growing exposure  to the casino industry in US and Britain.Also, GenM's domestic casino operations are resilient, providing stable and recurringcashflows annually.

Source: AmeSecurities

Gaming (OVERWEIGHT) - Defensive Stocks Staying Still

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: HLG

Price Call: BUY

Target Price: 4.92

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: BUY

Target Price: 4.17

Stock Name: GENTING
Company Name: GENTING BHD

Research House: HLG

Price Call: BUY

Target Price: 11.50

Gaming(OVERWEIGHT)

DefensiveStocks Staying Still

• GenM's FY11 results came in linewhereas GenT's FY11 results were aboveexpectations. BToto on the other hand, will be releasing its 3QFY12 results on21 March.
• BToto's results is expected toreport strong yoy and qoq growth due to higher number of draw days, the CNYfestival which falls in Jan and the impact of 4D Jackpot.
• Our regression test also showed thatthe cannibalization by 4D Jackpot has narrowed down to RM213k from RM536k perdraw previously.
• BToto's 4D sales have been on adeclining trend since 2009, partly due to the matured game. Magnum's 4D salesexperienced the same trend as well.
• RWNY's net win begins to improve ascustomers get used to the cold weather in NY. State-wide's average net winbreaches its historical high with US$313/VLT/day.
• GenS launched its remaining 2 luxuryaccommodations last month. They now have a total of 1,538 rooms in the resort.
• Given that we had upgraded ourratings on GenM and GenT
  (post FY11 results) to BUY, we upgrade the sector to OVERWEIGHT. Toppick according to preference are: (1) BToto (BUY, TP: 4.92), GenM (BUY, TP:4.17) and (3) GenT (BUY, TP: 11.50).

Source: HLIB Research 20 March 2012

Genting Malaysia (BUY) - GenUK's NEC A Step Closer To Reality

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: BUY

Target Price: 4.17

Genting Malaysia (BUY)

GenUK's NEC A StepCloser To Reality

• According to severalsources in the UK,the latest meeting of the Solihull Metropolitan Borough Council meeting haseffectively paved the way for the next planning stage of the project to put acasino at the heart of a destination development at the NEC. The projectincludes a new conference centre and hotel.
• This newsis within ours and management's time frame and the process is scheduled forcompletion by 1HFY12. Thereafter, development works will commence in by 2HFY12.
• GenM wouldnot have any problem funding this ''120m (RM581m) development given its net cashof RM2.6bn-3.6bn and free cash flow of RM1.8-2.2bn in FY12-13.
• Uponcompletion of this development, we expect the volatile earnings in GenUK willbe mitigated and underpin more consistent revenue growth going forward.
• We remain ourforecast and target price of RM4.17. Maintain Buy.

Source: HLIB Research 19 March 2012 

Genting Malaysia: Maintain Hold - Earnings delivered, waiting on catalysts

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: MAYBANK

Price Call: HOLD

Target Price: 4.00

Lacks near-term re-rating catalysts. Genting Malaysia's (GENM) 2011 earnings were well within expectations. Stable earnings growth from Resorts World Genting (RWG) was boosted by a full year of contribution from Genting UK (GENUK) and maiden contribution from Resorts World New York (RWNY). That said, GENM lacks near-term re-rating catalysts. Maintain Hold but raise TP to RM4.00.

Maybank Research 29 Feb 2012

Click here for full report

Genting Malaysia - Maiden contribution from RWNY BUY

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: AMMB

Price Call: BUY

Target Price: 4.30

Maintain BUY on Genting Malaysia Bhd (GenM), with an unchangedRNAV-based fair value of RM4.30/share. GenM's results were within consensusestimates and our expectations. 

We have tweaked GenM's FY12F to FY13F earnings forecasts forhousekeeping reasons and to account for lower daily wins per machine at'Resorts World New York'(RWNY). 

Our new assumption is a daily win of US$330/machine for FY12Fversus US$400/machine previously. Year-to-date, average daily win wasUS$347/machine.

GenM recorded a maiden contribution from RWNY in FY11. Excludingcost overruns, which contributed to a loss of RM17.3mil in 4QFY11,operationally RWNY recorded revenue of RM95.3mil and EBITDA of RM23.6mil fromtwo months of operations in FY11. This implies an EBITDA margin of 24.8%.

We understand that RWNY has stepped up its marketing effortsin New York and has implemented a bus programme running to, and from, Queensand Manhattan.

We also gather that there are seasonality trends to the averagedaily wins/machine. The average daily wins/machine tends to decline duringwinter and pick up during summer. 

As for the legalisation of a full-fledged casino licence in NewYork, we understand that the legislative process would take 2'' to three years.In Miami, the next seating for the approval of the casino bill would be inFY13F.

Revenue of GenM's casino operations in Malaysia rose 7% YoYto RM5.4bil in FY11, underpinned by improvements in win percentage. If luckfactor were to normalise, then revenue would have risen by only 4% YoY in FY11. 

Non-VIP players drove the increase in the volume of business.Volume of business from the non-VIP segment rose by a low double-digitpercentage YoY in FY11. This helped compensate for a single-digit percentagedecline in the volume of business from the VIP players.

In the UK, volume of business at the London casinos climbed22% YoY in FY11. Volume of business at the provincial casinos was flat YoY inFY11.   

Source: AmeSecurities

GENM (FV RM4.32 - BUY) FY11 Results Review: Mild Headwinds

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: OSK

Price Call: BUY

Target Price: 4.32

The group's full-year FY11 results were in line with ourestimates but marginally beat consensus numbers by 8%. Despite the recentsetback in Miami and depletion of the group's net cash balance to just RM343mas at Dec 2011, its free cash flow remains robust at RM1.2bn p.a, underpinningits capacity for future acquisitions. The maiden full-year contribution fromRWNY to earnings in FY12 is expected to drive group earnings by 19.6%. MaintainBUY, and  at  a fair value of RM4.32, backed by itsalluring 8.1x EV/EBITDA.

In line.Adjusting for various exceptional items, the group's FY11 core earnings were inline with our estimates, with its full-year core FY11 earnings representing102.1% of our full-year forecast but a larger 108% of consensus. EBITDA and netprofit expanded 15.1% and 11.2% respectively on better hold rates at itsdomestic VIP gaming business and  maidencontribution from its UK business. On a q-o-q comparison, EBITDA contracted1.9% q-o-q, largely owing to a RM40.9m construction loss from cost overruns fromthe development of Resort World at New York (RWNY) which it incurred in 4Q11. Excludingthe construction loss,  the group's  core operations reported a 5.7% q-o-q increasein EBITDA, driven by the higher business volume from Malaysia and a maiden RM23.6mcontribution from RWNY, which commenced operation on 28 Oct 2011. Meanwhile,casino  visitation  in UK stood at +5% in London and +9% atprovincial casinos.

Malaysian casino opresilient. Its Malaysian casino operation, which  comprises the bulk of group earnings (at 90%), reported 7% y-o-y and +6% y-o-ygrowth in revenue and earnings respectively, although  4Q11 revenue contracted1% q-o-q on the back of  a lower winpercentage. Foreign visitor growth was driven by Singapore and Indonesia, fromwhich visitation was higher by 6% and 8% respectively for the FY11 perioddespite fierce competition from the operation ramp-up by Singapore's integratedresorts. More importantly, hotel arrivals from Singapore were higher than thepre-Singapore IR levels as Genting Highlands' lower price points and coolmountain air continue to be a key draw for mass market visitation.  

Source: OSK188

Genting Malaysia (BUY) - Results In-Line

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: BUY

Target Price: 4.17

Genting Malaysia(BUY)

Results In-Line

• Excluding construction revenue and profit for the US, GenM's FY11 net profit camein-line accounting to 104.4% of our full year forecast.
• Declared final dividend of 4.8 sen, summing up to GDPS of 8.6 sen vs.our expectation of 8 sen. (2.3% GDY).
• Membership programmes were differentiated during the quarter which ledto the fall in casino patronage trend. Hotel revenue was up 9% on the back ofincreased of no. of rooms sold and higher average room rate.
• GenUK continued to show improvement in the quarter, recording higher revenueand EBITDA attributable to  higher volume in business and hold percentagein Londoncasinos.
• Net win in RWNY started to normalize within the range ofUS$310-370/VLT/day. In addition, RWNY has increased its marketing efforts inRWNY to attract more customers such as bus programmes.
• We raise our revenue growth for GenUK from a conservative 1% to 3% toreflect better-than-expected performance during the year.
• Target price is raised 2% to RM4.17 from RM4.07 previously.Upgrade to BUY.

Source: HLIB Research 29 Feb 2012

Genting Malaysia - No major surprises in the cards

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: CIMB

Price Call: HOLD

Target Price: 4.10

Target RM4.10

At 100% of our forecast and 104% of consensus numbers, Genting Malaysia's FY11 core net profit met expectations, anchored by the UK casinos and resilient domestic operations. In 2012, it can look forward to an additional earnings stream from RWNY.

Source: CIMB Daybreak February 29, 2012, Full PDF Report

GENM - Broadening out

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HWANGDBS

Price Call: HOLD

Target Price: 4.10

Genting Malaysia; Hold; RM3.80
Price Target: RM4.10; GENM MK

Results in line, Final DPS of 4.8sen (4Q10: 4.4sen) declared. Resilient Malaysian operations to help fund US ventures. Cut 2012-13F earnings by 6.5-5.5%; maintain Hold & SOP-TP of RM4.10.

Source: HwangDBS Research 29 Feb 2012

HLIB Research 8 February 2012 (Construction; GenM; Traders Brief)

Stock Name: GAMUDA
Company Name: GAMUDA BHD

Research House: HLG

Price Call: BUY

Target Price: 4.41

Stock Name: MRCB
Company Name: MALAYSIAN RESOURCES CORP

Research House: HLG

Price Call: BUY

Target Price: 2.64

Stock Name: SUNWAY
Company Name: SUNWAY BERHAD

Research House: HLG

Price Call: BUY

Target Price: 3.12

Stock Name: MUDAJYA
Company Name: MUDAJAYA GROUP BHD

Research House: HLG

Price Call: BUY

Target Price: 4.61

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: HOLD

Target Price: 4.07

Construction (OVERWEIGHT)

Relook into Gamuda and MRCB's valuation

'''' YTD, KLCON Index is up +9.8% vis-''-vis the KLCI's +0.5%. We believe that the strong outperformance is due to improved newsflow for the sector and return of risk appetite from investors.

'''' Gamuda and MRCB have seen their existing TP of RM3.81 and RM2.22 breached respectively. Hence, this report relooks into both companies' valuation as to where it may potentially touch if things materialise as planned.

'''' We upgrade Gamuda's TP by 16% to RM4.41 from RM3.81 and MRCB's TP by 19% to RM2.64 from RM2.22 to take advantage of the current buoyant sentiment in the construction sector, which tends to result in share prices overshooting. However, we caution that our newly assigned TP will be revised downwards if things do not pan out as planned.

'''' We MAINTAIN our OVERWEIGHT stance on the sector as we believe that more ETP projects should materialise this year to mitigate slowing economic growth.

'''' Top Picks in order of preference:

Sunway (TP: RM3.12)

Gamuda (TP: RM4.41)

Mudajaya (TP: RM4.61)

MRCB (TP: RM2.64)

''

Genting Malaysia (HOLD)

Destination Resort Bill Stalled

'' According to Reuters, the legislation that would allow three new resort-style casinos in Florida has been withdrawn before a House subcommittee could hold their vote. The bill has failed to pass at least one committee; hence the measure is dead for 2012.

'' This has turned out to be a disappointment for GenM. However, GenM's RWM remains positive with its mission to build a destination resort in Florida and will continue to work with the legislature and community to bring this mission into reality.

'' If the legislation is not approved, GenM will still continue with the US$3.8bn development, spreading it across 10-15 years. With this, GenM will incure approximately US$253-380m additional capex p.a., which should not be an issue given its net cash of RM2.2-4.8bn and free cash flow of RM0.8-1.8bn in FY11-13.

'' No changes made to our forecast. Maintain HOLD with TP of RM4.07.

''

KLCI: To retest 1550 zones after the 1530 breakout

'''' As KLCI continued to stay decisively above the major SMAs support levels, it is poised to unfold a follow-through rebound. Following last week's rally that partially filled the large gap of 1,529-1,546 pts, the index may continue its ascending trend today to retest immediate resistance target at 1550.

'''' Immediate supports are Immediate supports are 1530 (31 Dec 11), 10-d SMA (1523) and 1520 (mid Bollinger band).

''

RCECAP: More technical rebound ahead

'''' Technically, RCECAP short to medium term outlooks are positive as daily, weekly and monthly charts (FIG#3, 4 & 5) are strengthening. The strong breakout of the neckline resistance near RM0.52 will spur greater upside towards RM0.55-0.58 targets. Post RM0.58, more formidable resistance is RM0.62 (76.4% FR). Immediate supports are situ RM0.48 (30-d SMA), RM0.47 (100-d SMA) and RM0.46 (daily lower Bollinger band).

'''' Cut loss below RM0.46.''