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