Stock Name: GENTING
Company Name: GENTING BHD
Company Name: GENTING BHD
| Research House: HLG | Price Call: BUY | Target Price: 11.50 |
Genting Berhad (BUY)
Better-Than-Expected FY11 Results
Repored FY11 net progfit of RM2,867.5m came in aboveexpectation, accounting for 108% of ours and also streets' estimates.
Declared final dividend of 4.5 sen, summing up tototal GDPS of 8.0 sen (0.8% GDY)
RWG showed revenue growth from its gaming segment withhigher volume in business, partially offset by the lower hold percentage in thepremium players segment. RWS's revenue growth is mainly from its non-gamingsegment (USS). RWS's gaming revenue was up mid-singledigit. Although it gained market share in 4Q, it is still below the 50% mark.
GenUK continued to show improvement, especially in its London casinos. RWNY's net win has started tonormalize within the range of US$310-370/VLT/day.
Its power division benefited again from higher energy charge and tariffrates.
Plantation and property division (GenP) showed revenue growth in FY11 from thehigher palm product prices, higher FFB production and greater demand from itsindustrial and commercial properties.
O&G division did not record any revenue in FY11 following thedisposal of Genting O&G (China).
FY12-13 PATAMI forecast raised by 1% to reflect better performance byGenP and GenUK coming forward.
TP raised by 2.7% to RM11.50 based on SOP valuation post-earningsrevision. Upgrade to BUY.
Source: HLIB Research 29 Feb 2012
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