Genting Sing    Last:0.72    -0.005

GenSp starts to move up again

Genting Singapore PLC –
Buy (Maintained)
Closing Price SGD 2.08
Target Price SGD 2.36 (+13%)
52w k High (11/9/2010) 2.35
52w k Low (5/21/2010) 0.91
1. Rubs CRA the wrong way
2. Invests in non-core

• Genting was fine a total of S$530,000 by CRA for reimbursing entry levy and breaches in Casino Control (Surveillance) Regulations. Amount has insignificant impact on financials.
• Genting ventures into unrelated field in Natural resources through investments in Gold Nature Invested Limited for US$60 million at 3.75x book value.
• We maintain our Buy recommendation and fair value of S$2.36

The breaches
Casino Regulatory Authority of Singapore (CRA) had previously issued a letter of censure on 31st Dec 2010 to RWS for making changes to its casino surveillance system without prior approval from CRA. On 18th May 2011, CRA took further issues with RWS contraventions of the regulations by fining it a total of S$330,000 for the following:

- S$150,0000 Failure to ensure that casino surveillance footage from 22 cameras during the period 29 March 2010 to 2 April 2010 was retained for the specified period as required.
- S$30,000 Failure to ensure that casino surveillance footage from 18 cameras during the period 29 March 2010 to 30 March 2010 was retained for the specified period as required.
- S$150,000 Did not have a failure notification system to provide an audible as well as visual notification of specific failures in the casino surveillance system.
Source: CRA

CRA further fines RWS another S$200,000 for reimbursing entry levy payable by Singapore citizens and permanent residents. On 15 July 2010, a senior management staff of RWS had provided cash to SCPR media representatives for the purpose of paying for the entry levy payable by them for entry into RWS’ casino premises to cover the launch of the Ladies Club.

Impact on financials
RWS earned NPAT of S$305.4 million in 1Q11 and our projected net profit for FY11 is S$1.27 billion. The S$0.53 million fine is thus small change to the company.

Investments in Gold Nature Investments Limited
Genting Singapore paid US$60 million for Gold Nature Investments Limited. This represents PB of 3.75x base on NAV of US$16 million. The new subsidiary is 51% vested in Montbella Limited which has investments in natural resource ventures. The investment is not expected to have any material impact on consolidated net tangible assets and earnings per share of the Company for the financial year ending 31 December 2011.

In our initiation report dated 14th January 2011 (page 2), we highlighted the roles of each listed entities and under Genting Singapore, its core business is to focus on running RWS and in bidding for projects related to the construction, development and management of similar sized resorts. No where did it say investments in natural resources. In fact, this portfolio appears more suited for Genting Plantations Berhad which has many oil palm plantations in Malaysia. As at Dec 2010, Genting Plantations had cash stash of MYR 755.7 million (S$309 million) which is sufficient to pay for Gold Nature Investments. But of course Genting Singapore has an even larger cash hoard of S$3.46 billion. But when we consider its net debt position, Genting Singapore is in fact in a worse off position with net cash of S$6 million versus Genting Plantations’ S$205 million.

The Genting Group had on a few occasions reshuffled the portfolios amongst the subsidiaries through sales and purchase agreements with one another. Hence, we are not surprise if the newly acquired subsidiary is divested to a sister entity in future. Hopefully at a higher valuation. Meanwhile, Genting Singapore can afford to pay cash for Gold Nature Investments Limited considering its cash hoard and operating cash inflow of S$383.4 million in 1Q11. Though we do not see the rationale in Genting Singapore’ non-core investment as it does not align with the company’s long term strategic growth, we choose to maintain a more neutral stance.

Outlook for 2Q11 results
Cash will be lesser by S$75 million due to investments in Gold Nature as well as the CRA fine. We further expect core net profit to be lower than 1Q11 as second quarter is unlikely to repeat stellar win rate of 3.8% and as gaming activities become slightly more muted without the CNY atmosphere. However, given the weaker performance in USS and Hotel ADRs in 1Q11, these may turn in relatively stronger contributions for 2Q11. Furthermore, the disposal of 43,092,136 Rank shares for 150 pence in May 2011 will contribute an additional S$12.9 million. Hence, we still expect Genting to meet our expectations. We thus maintain our Buy call on Genting Singapore and fair value estimate of S$2.36 base on 15x EV/EBITDA.

 

I think genting sp is pretty stable even big news fine 1/2 mils share price only drop few cents.

 

 

2.02 can try to buy....

 

This counter cannot make it liao lah.... Totally controlled by BB and NOBODY knows exactly when they intend to raise up the price or bring down the price.... Not even technical charts nor fundamental news can affect the price up/down.... For the time being, it seems that BB wants it to maintain @ 2.07~2.08.... Subsequently, it can spurs up to 2.15~2.20 or goes down to 2.00.... Those who intend to long can buy anytime now (dun bother to time it) and keep it for the next 1 to 2 years to possibly see 10~30% returns..... Short time trader can continue to short or long for 5~10cts profits or even loss possibly....  

 

do u think still cn buy.

eplepl      ( Date: 19-May-2011 10:43) Posted: strong still ! eplepl      ( Date: 18-May-2011 21:42) Posted: Half a million, a bit too little for such a big casino. One high net worth person can cover the fine already. Really got to see tomorrow market to make this assumption. Maybe sands might get this fine too...... In a fine city ?

 

Summary: The Ministry of Trade and Industry (MTI) has upgraded Singapore’s growth forecast for 2011 to 5.0-7.0%, up from its previous forecast of 4.0-6.0%

this after the economy recorded a strong growth in the first quarter. In 1Q11, Singapore’s economy grew by 8.3% YoY, spot on the street’s expectations. On a seasonally-adjusted QoQ annualized basis, the economy expanded by 22.5%, compared to 3.9% in 4Q10. Growth was broad based and led by the manufacturing industry, which expanded by 75.4% QoQ, compared to a small growth of 0.7% in 4Q10. The increase was driven by higher production in the biomedical manufacturing, precision engineering and electronic clusters. The construction sector grew by 13.3% QoQ, reversing the contraction in the preceding two quarters, and was largely driven by an increase in public sector construction activities. The financial sector grew by 27.1% QoQ, following the 16.9% increase in 4Q10, due to increased lending and insurance activities. Tourism-related hotels & restaurants sector and “other services” sector remained robust, with QoQ growth rates of 9.7% and 2.9%, respectively.(Research Team)

 

strong still !

eplepl      ( Date: 18-May-2011 21:42) Posted: Half a million, a bit too little for such a big casino. One high net worth person can cover the fine already. Really got to see tomorrow market to make this assumption. Maybe sands might get this fine too...... In a fine city ? limkt009      ( Date: 18-May-2011 20:50) Posted: Jialat tmr lau sai liao....

 

Thursday: 19 MAY 2011  CNA  PRIMETIME  MORNING

EX-Minister  GEORGE  YEO

testing  the  iFLYER  at  RWS  Universal Studio

cOUld  nOt  waIt  fOr  it  tO  be  OPEN  ? ? ? ?

---

Public  Operating  Licence 

not  issued  ? ? ? ?

SINGAPOREANS  cannot  ENJOY  the  SAME  FLIGHT  SIMULATION  ? ? ? ?

like  MALAYSIANS  do  at  GENTING  HIGHLANDS  sInce many  years  Ahead  already  ? ? ? ?

---

W H Y  sO    SAD  ? ? ? ?

 

just wondering the post closing at 17:05 @ 2.07 for 2,647 lots were the consolidated transactions?

parimas8      ( Date: 18-May-2011 23:41) Posted: post closing 17:05 Buy Up @ $2.07 for 2,647lots + 4,817 lots.  are these forced  position closure  on shorts below this price of $2.07?

 

post closing 17:05 Buy Up @ $2.07 for 2,647lots + 4,817 lots. 

are these forced  position closure  on shorts below this price of $2.07?

 

Half a million, a bit too little for such a big casino. One high net worth person can cover the fine already. Really got to see tomorrow market to make this assumption. Maybe sands might get this fine too...... In a fine city ?

limkt009      ( Date: 18-May-2011 20:50) Posted: Jialat tmr lau sai liao....

 

Jialat tmr lau sai liao....

 

 

SINGAPORE: The Casino Regulatory Authority of Singapore (CRA) has fined Resorts World Sentosa (RWS) S$530,000 for four breaches under the Casino Control Act and its regulations.


http://www.channelnewsasia.com/stories/singaporelocalnews/view/1129645/1/.html?cid=dlvr.it

 

Sian this counter morning good then afternoon to evening go back to sq 1.

 

2.07 for G13/F83/600

 

iFLYER  at  RWS  Universal Studio

WHY is the iFLYER  Operations Licence  nOt  IssUed  ? ? ? ?

Any  gOOd  reasOn  ? ? ? ?

 

You're right man.

The management team run the company instead of securities firm :-)

Then who play the company shares? securities firm? Fund Manager? speculation players? or company management team?

 

tmchai      ( Date: 17-May-2011 08:40) Posted: Some people tend to listen to analyst just bcos they look analyst as an  'expert'.    I do not have in-depth knowledge about GenSp, and do not know how to do the technical analysis about the company.  I used to work for a company listed in NYSE and I'm the buddy of the Finance head.  We always laught at the  expects' remarks about the company and we were wondering who runs the company...the analysts or company management team? Just to share my experience here......good luck guys. DesertEyes      ( Date: 16-May-2011 15:10) Posted: 80% of the investor listen to these 20% as what they said:- Citigroup downgrades from Buy and cuts its target price to S$2.30 from S$2.40. The house says reported 1Q net revenue of S$923 million and EBITDA of S$530 million exceeded its estimates. Expects to see pressure on Genting's shares in the near term. " That said, we still view GENS as a high-quality cash-flow generator." Why the 20% people have to listen to thoes comment??' Such iresponsible and contratic comments came out from Citigroup??? it means that  - 1)    Citigroup estimates wrongly on Centing's 1Q results is because Genting shouldn't do so well, if not they will get their estimates correctly. 2)    Because of Citigroup estimates wrongly estimates wrongly you guys should sell and bring back the price. 3)    Genting do so well is because the lady luck is no it's side.  hello i thought Genting is in gambling business so what Citigroup said is Genting should loss money in its business. 4)    They don't know next quarter whether the lady luck will be also on Genting side or not so you better sell off now so that Citigroup will get their estimates correctly for next quarter. 5)    It is a hig-quality cash-flow generator company and such company shouldn't belongs to you guys and you should sell off for me to buy and keep. have  I miss out anythings that I read from citygroup's comments???

 

Is this good news or bad news? what do you guys think?

SUper sian tat i bought 10 lots at 2.18 last thursday after they announced the HUGE profit they are earning, but..................

samson      ( Date: 17-May-2011 21:48) Posted: ACQUISITION OF SHARES IN GOLDNATURE INVESTMENTS LIMITED The Board of Directors of Genting Singapore PLC (“ Northspring Global Ltd, a wholly owned subsidiary of the Company, has entered into a sale and purchase agreement for the acquisition (the “ paid up share capital of Goldnature Investments Limited for a consideration of US$60 million (“ Goldnature Investments Limited is a company incorporated in the British Virgin Islands (“ share capital of Montbella Limited. Montbella Limited is a company incorporated in the BVI and has portfolio interests in natural resource ventures. Upon completion of the Acquisition, Goldnature Investments Limited and Montbella Limited will be subsidiaries of the Company. Based on the unaudited management accounts of Goldnature Investments Limited, Goldnature Investments Limited has a net asset value of US$16 million. The Consideration was arrived at on an arm's length and willing-buyer-willing-seller basis. The Consideration will be paid in cash upon the completion of the Acquisition. The Acquisition is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Company for the financial year ending 31 December 2011. None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Acquisition other than through their respective shareholdings in the Company. For and on behalf of the BoardCompany”) wishes to announce thatAcquisition”) of 68.63% of the issued andConsideration”).BVI”), and is an investment holding company with a 51% interest in the issued and paid up Genting Singapore PLC Tan Hee Teck Director / President and Chief Operating Officer 17 May 2011