Genting HK own NCL...
NCL's net loss in 2010 included a non-recurring charge of $33.1 million related to foreign exchange contracts associated with the financing of Norwegian Epic.
Excluding this non-recurring charge [paper lOss ?], net income for the period was $18.2 million.
So genting hk profit should be more if exclude the $33.1 mil
US11.3 Million + US33.1 Million = US44.4 Million
pharoah88 ( Date: 30-Aug-2010 13:12) Posted:
|
BUSINESS REVIEW
The below commentary is prepared based on the comparison of the results for the first half year of 2010 and 2009 of the Group.
Key points for 1H 2010 in comparison with 1H 2009:
- EBITDA for the period improved 84.3% to US$50.5 million, compared with US$27.4 million for the same period 2009
- Capacity increased by 4.7% and passenger ticket revenue increased by 23.5% in 2010 despite occupancy percentage decreased by 4% from 86% to 82% in 2010
- Net revenue increased by 7.5% to US$159.6 million, compared with US$148.5 million for 2009
- Ship operating expenses decreased by 3.6% in 2010, achieved through savings from various cost control and ship deployment initiatives
- Selling, general and administrative expenses excluding depreciation and amortisation decreased by 23.7% in 2010
- Operating profit before impairment was US$16.6 million for 2010, versus an operating loss before impairment of US$9.6 million in 2009
- Profit for the period was US$11.3 million, compared with loss for the period of US$35.3 million for 2009. Reported first half profit for the first time since 2006
- The turnaround from loss is due to the following reasons:
o Star Asia’s performance for 1H 2010 is reflective of measures taken to improve operational efficiency via active cost rationalisation and cost management, as well as effective deployment and marketing strategies implemented across the fleet
o NCLC has undergone a turnaround with stronger ticket pricing and booking trends alongside the recent launch of its newest ship, m.v. Norwegian Epic
o Resorts World Manila, the Group’s first venture in a land-based attraction in the Philippines which had its soft opening in August 2009 recorded a net income for the period
o
Earnings / (Loss) per share
|
Earnings / (Loss) per share is computed as follows: Six months ended 30 June |
|
2010
US$’000 |
2009
US$’000 |
|
unaudited |
unaudited
(restated) |
|
BASIC |
|
Earnings / (Loss) attributable to equity holders of the Company |
11,978 |
(34,497) |
|
Weighted average outstanding ordinary shares,
in thousands |
7,426,246 |
7,426,246 |
|
Basic earnings / (loss) per share in US cents |
0.16 |
(0.46) |
My Inn investments in the PRC recorded operating income in 1H 2010 compared to operating loss in 1H 2009 |
|
Thursday: 2 SEPTEMBER 2010 CLOSING
| e Genting HK US$ |
S21 |
i |
-- |
USD |
0.300 |
|
+0.010 |
+3.5 |
31,090,000 |
2,424,000 |
0.295 |
0.300 |
4,037,000 |
0.295 |
0.290 |
0.300 |
0.290 |
M |
-- |
SGX |
S21 |
GENH.SI |
| GENTING BHD |
3182 |
i |
CD |
MYR |
9.480 |
|
+0.090 |
+1.0 |
9,631,800 |
2,000 |
9.440 |
9.480 |
500 |
9.470 |
9.390 |
9.590 |
9.380 |
-- |
-- |
KLS |
3182 |
GENT.KL |
| GENTING MYS BHD |
4715 |
i |
CD |
MYR |
3.040 |
|
+0.040 |
+1.3 |
5,724,000 |
2,000 |
3.020 |
3.040 |
52,100 |
3.020 |
3.000 |
3.040 |
3.010 |
-- |
-- |
KLS |
4715 |
GENM.KL |
| Genting SP |
G13 |
i |
-- |
SGD |
1.760 |
|
-0.040 |
-2.2 |
255,754,000 |
4,899,000 |
1.760 |
1.770 |
2,721,000 |
1.820 |
1.800 |
1.830 |
1.740 |
M |
-- |
SGX |
G13 |
GENS.SI |
| GentingSMBLeCW120402 |
J2UW |
i |
-- |
SGD |
0.210 |
|
+0.005 |
+2.4 |
270,000 |
20,000 |
0.190 |
0.220 |
210,000 |
0.215 |
0.205 |
0.220 |
0.210 |
M |
-- |
SGX |
J2UW |
GNML_td.SI |
| GentingSMBLeCW130103 |
L2PW |
i |
-- |
SGD |
0.160 |
|
0.000 |
0.0 |
545,000 |
30,000 |
0.150 |
0.210 |
100,000 |
0.165 |
0.160 |
0.165 |
0.155 |
-- |
-- |
SGX |
L2PW |
GNML_tm.SI |
| GentingSMBLeCW130603 |
L0QW |
i |
-- |
SGD |
0.205 |
|
0.000 |
0.0 |
390,000 |
10,000 |
0.200 |
0.215 |
50,000 |
0.210 |
0.205 |
0.215 |
0.195 |
M |
RevealIng Its attractIOn
What’s New
• Essentially maintaining our 2011-02 forecasts following yesterday’s 1H10 results (refer to RHS table overleaf), but tweaking 2010’s earnings downwards mainly due to forex losses at Norwegian Cruise Line (NCL).
• We expect Genting Hong Kong (GENHK) to unveil a much stronger net profit in 2H10 led by seasonal strength in the cruise business and snowballing profits at Resorts World Manila (RWM).
Stock Impact
• 1H10 earnings indicate sustained recovery. GENHK achieved an estimated pre-exceptional net profit of US$0.2m in 1H10, reversing 1H09’s loss of US$21.7m. The figure is at the low end of our forecast, due to start-up costs for the EPIC (which set sail in July) at 50%-owned US cruise operator NCL, and poor luck factor at the Penang cruise operation under Star Cruises (Asian cruise operation).
• A much stronger 2H10 unfolding. We expect GENHK to deliver a net profit of US$77m, driven by strong 3Q10 seasonal demand at both NCL and Star Cruises, and with RWM steamrolling out fat returns. Earnings drivers for the cruise business are: a) rising ticket prices at both NCL (+5.8% yoy for NCL in 1H10) and Star Cruises, b) rising occupancy rates of >100% for non-day cruise routes, c) absence of 1H10’s pre-operating cost and maiden contribution for the EPIC, d) increased ship utilisation at Star Cruises with new route deployment (Hong Kong-Taiwan-Japan cruise) and bareboat charter with NCL for Norwegian Sky (1 Jul 10 to 31 Dec 12) for a total charter hire fee of US$53.4m, and e) normalised luck factor at the cruise casino operation.
• RWM’s rising attractiveness. 50%-owned RWM performed in line, contributing about US$10.2m to GENHK’s net profit, against our full-year forecast of US$39.1m. The payback for this >US$400m project has been so lucrative that its net debt has fallen to about US$50m.
• RWM could top our 2010 net profit expectation of US$78m should it continue to deliver a gross gaming win of at least US$1.5m (which we estimate it has achieved in Jun-Aug 10) compared with just over US$1.0m in 1H10. We understand that Jul 10’s annualised net earnings reached US$160m, and RWM also clocked in the highest daily win last week exceeding US$7.0m. For 2011, we expect RWM to deliver a net profit of US$215.5m assuming a daily win of almost US$1.6m and EBITDA margin of 41%.
• Potentially a big beneficiary of Manila. There are talks of the Philippine’s new administration exploring the possibility of outlawing slot parlour operations at non-tourist sites. If true, RWM could gain market share in the lucrative market. RWM’s slot operation (over 1,200 machines), which accounts for an estimated one-third of RWM’s bottom line, could gain significantly. Presently, non-casino slot parlours operate about 5,000 slot machines. RWM could eventually attract 20,000-25,000 visitors daily, up from 9,000 presently, after the integrated resort-casino’s grand opening at end-Nov 10. Potentially another crowd booster, there is a possibility that city check-in could be introduced for the nearby local (budget) air terminal.
• No competition in sight. It appears that the other three licence concessionaries at the Manila Bay mega casino development have initiated little construction works (if at all), thus giving RWM more time to harvest the burgeoning demand integrated resort-casinos.[/b]
Earnings Revision
• We trim our 2010, 2011 and 2012 net profit forecasts by 6.5%, 2.5%, 3.2% to US$8937m, US$181.0m and US$195.6m respectively. By 2011, RWM is expected to account for about 60% of GENHK’s net profit.
Valuation/Recommendation
• BUY on weakness; maintain our RNAV-based target price of US$0.31, which implies target 2011F fully-diluted PE and adjusted EV/EBITDA of 12.9x and 6.7x respectively.
Share Price Catalyst
• Strong earnings growth, dividend policy, future listing of NCL and RWM.
Last edited by kgaihc on Thu Sep 02, 2010 8:53 am; edited 2 times in total
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