KLCI Stock - GENM / 4715 - 2010 Quarter 3

GENTING MALAYSIA BERHAD

Company Description

Genting Malaysia Berhad, formerly Resorts World Bhd, is involved in a tourist resort business at Genting Highlands, and its activities cover leisure and hospitality services, which comprise gaming, hotel, entertainment and amusement. The principal activities of the subsidiaries include property development and management, leisure and hospitality services, investments, time share ownership scheme, tours and travel related services. The Company operates in two segments: Leisure & Hospitality, which includes the gaming, hotel, entertainment and amusement businesses, tours & travel related services and other support services, and Properties division, which holds the land held for development of the Company and is involved in property developments. Genting Berhad is its immediate and ultimate holding company. In December 2009, Genting Berhad completed the disposal of its subsidiaries, Oakwood Sdn. Bhd. and Genting Highlands Tours and Promotion Sdn. Bhd., to Genting Malaysia Berhad.

Company Info

Listing Date	1989-12-22
Market Capital (Capital Size)	21,235,979,586 (Very Large)
Par Value	RM 0.10
Board	Main
Sector	Trading/Services
Major Industry	Leisure & Recreation
Sub Industry	Property Development
Website	http://www.gentingmalaysia.com/

My Analysis

Forecast P/E now	(3.59-0.079)/0.2364 = 14.85 (Moderate)
Target Price	3.55+0.079 = 3.62 (PE 15.0, EPS 0.2364, DPS 0.079)
Decision	NOT BUY unless price below 3.4
Comment	Revenue second consecutive quarter decreasing and also lower than preceding year corresponding quarter, eps second consecutive quarter increasing but still lower than preceding year corresponding quarter, neither free nor positive net cash flow, liquidity ratio decreasing to high level now, low gearing ratio, all accounting period are as usual, Genting Malaysia continue affecting by competitor in Singapore, UK and US index increasing but it currency still weakeaning, Vietnam, UK and US venture
First Support Price	3.2
Second Support Price	3.0
Risk Rating	MODERATE

Research House

ECM Target Price	3.45 (2010-10-20)
AMMB Target Price	3.85 (2010-10-21)
CIMB Target Price	4 (2010-10-21)
Maybank Target Price	2.4 (2010-10-21)
Morgan Stanley Target Price	3.05 (2010-10-28)
AFFIN Target Price	3 (2010-11-26)
HwangDBS Target Price	3.7 (2010-11-26)
MIMB Target Price	2.7 (2010-11-26)
OSK Target Price	3.24 (2010-11-26)
RHB Target Price	4.5 (2010-11-26)
Credit Suisse Target Price	3.3 (2011-01-14)

Accounting Ratio

Return on Equity	11.77%
Dividend Yield	2.20%
Profit Margin	34.60%
Tax Rate	19.18%
Asset Turnover	0.3846
Net Asset Value Per Share	1.95
Net Tangible Asset per share	1.74
Price/Net Tangible Asset Per Share	1.94
Cash Per Share	0.95
Liquidity Current Ratio	3.4387
Liquidity Quick Ratio	3.3985
Liquidity Cash Ratio	3.2522
Gearing Debt to Equity Ratio	0.1833
Gearing Debt to Asset Ratio	0.1549
Working capital per thousand Ringgit sale	80.4%
Days to sell the inventory	7
Days to collect the receivables	16
Days to pay the payables	83

My notes based on 2010 quarter 3 report (number in '000):-
- Total revenue decreased by 10% to RM1,202.9 million mainly due to lower business volume and weaker luck factor in the premium players business in the current quarter ended 30 September 2010

- Profit before taxation was RM416.2 million, lower by RM54.4 million or 12%, mainly due to the following:
i) lower business volume coupled with weaker luck factor in the premium players business
ii) higher expenses of RM39.3 million which included the start up costs for the development and operation of a video lottery facility at the Aqueduct Racetrack in the City of New York, United States of America

- However, the decrease in profit before taxation was mitigated by:
i) fair value gain of RM19.4 million arising from the Group’s investments in financial assets at fair value through profit or loss('FVTPL')
ii) higher interest & investment income by RM11.8 million
iii) gain of RM7.4 million on disposal of AFS financial assets

- In addition, there was an impairment charge of RM48.6 million recorded on the Group’s investment last year

- The Group registered a higher profit before taxation of RM416.2 million in the current quarter ended 30 September 2010 compared with RM414.2 million in the preceding quarter ended 30 June 2010. The higher profit before taxation was mainly due to fair value gain of RM19.4 million from the Group’s investments in FVTPL this quarter compared to the fair value loss of RM34.0 million in the preceding quarter

- However, the higher profit before taxation was offset by lower volume of the premium players business and higher expenses of RM43.4 million which included the start up costs for the development and operation of a video lottery facility in New York

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0591*4 = 0.2364, estimate PE on current price 3.59 = 14.85(DPS 0.079)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2315*1.05 = 0.2431, estimate highest/lowest PE = 14.98/11.85 (DPS 0.079)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2315*1.05 = 0.2431, estimate highest/lowest PE = 12.66/9.82 (DPS 0.073)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0628*4 = 0.2512, estimate highest/lowest PE = 11.25/9.7 (DPS 0.073)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0629*4 = 0.2516, estimate highest/lowest PE = 11.45/10.33 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0577*4 = 0.2308, estimate highest/lowest PE = 12.35/11.44 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0481*4 = 0.1924, estimate highest/lowest PE = 15.23/12.79 (DPS 0.07)

GENM latest news (English)

GENM latest news (Chinese)

Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2010-11-25	2010	3	N/A	N/A	-	3.03%	8.24%	1202916	3774578	416262	1228234	336417	914471	0.0591	0.1603	13132017	2033786	-	11098231	1135072	1525958	297419	5144546	390886	688305	4456241	5694477	5703061	19247332	2010-09-30	34.60%	19.18%	0.3846	-	1.95	1.74	1.94	0.95	3.4387	3.3985	3.2522	0.1833	0.1549	80.4%	7	16	83
2010-08-26	2010	2	3.72	2.96	0.036	3.03%	5.73%	1226492	2571662	414130	811972	305690	578054	0.0536	0.1013	11521984	1438306	-	10083678	822641	462169	1108	5193433	360472	361580	5555013	5707855	5707721	17066486	2010-06-30	33.77%	26.22%	0.4498	-	1.77	1.76	1.7	1.04	5.758	5.697	5.4965	0.1426	0.1248	99.2%	7	15	75
2010-05-27	2010	1	3.15	2.46	-	2.70%	2.70%	1345170	1345170	397842	397842	272364	272364	0.0477	0.0477	11273747	1170635	6818	10103112	394005	332955	2308	5209314	61050	63358	5272672	5707554	5707554	15125018	2010-03-31	29.58%	31.57%	0.4576	-	1.77	1.77	1.5	0.97	7.1714	7.0909	6.8464	0.1159	0.1038	96.9%	7	14	71
2010-02-25	2009	4	2.9	2.51	0.043	3.53%	13.05%	1275555	4991765	469385	1764593	358320	1323701	0.0628	0.2315	11346032	1201853	6920	10144179	1626822	532066	373553	4529836	1094756	721203	5251039	5707373	5718517	15524054	2009-12-31	36.80%	23.68%	0.44	11.7507	1.77	1.77	1.54	0.92	6.632	6.5577	6.3132	0.1186	0.1059	94.2%	7	15	79
2009-11-25	2009	3	2.96	2.66	-	3.67%	9.84%	1335901	3716210	470667	1295208	359456	965381	0.0629	0.1687	11073197	1267158	7024	9806039	1174604	229244	245540	4542774	945360	699820	5242594	5714188	5722235	16399719	2009-09-30	35.23%	23.65%	0.4556	-	1.71	1.71	1.68	0.93	6.0459	5.9802	5.7227	0.1293	0.1144	92.6%	7	17	73
2009-08-26	2009	2	2.98	2.69	0.03	3.63%	6.66%	1202256	2380309	438859	824541	330481	605925	0.0577	0.1058	10416943	1322597	7126	9094346	738055	202868	13078	4566963	535187	522109	5089072	5726122	5726050	16033141	2009-06-30	36.50%	24.72%	0.4737	-	1.59	1.59	1.76	0.9	5.4944	5.4343	5.2085	0.1455	0.127	89.7%	7	16	70
2009-05-27	2009	1	3.02	2.49	-	3.17%	3.17%	1178053	1178053	385682	385682	275444	275444	0.0481	0.0481	9704117	1013027	7239	8691090	247361	697	9187	4609339	248058	238871	4848210	5725328	5725328	15343879	2009-03-31	32.74%	28.61%	0.5124	-	1.52	1.52	1.76	0.85	7.4285	7.3397	7.0306	0.1167	0.1044	89.3%	7	16	59
2009-02-25	2008	4	2.89	1.84	0.04	4.66%	7.62%	1329102	4886703	244496	1127010	387843	634389	0.0674	0.1099	9422935	1097856	7338	8325079	1713249	121331	427686	3136068	1834580	1406894	4542962	5750888	5773814	12881989	2008-12-31	18.40%	-	0.5186	20.3871	1.44	1.44	1.56	0.79	6.1895	6.1119	5.8481	0.132	0.1165	82.7%	7	15	72
2008-11-26	2008	3	2.68	2.14	-	4.22%	12.66%	1224909	3557601	464788	1371506	340590	1022232	0.0591	0.1768	9308294	1234650	7437	8073644	1354396	392131	229509	3052328	1746527	1517018	4569346	5763365	5780832	15272917	2008-09-30	37.94%	26.74%	0.5048	-	1.4	1.4	1.89	0.79	5.2464	5.1781	4.9472	0.1531	0.1326	83.6%	8	17	76
2008-08-27	2008	2	2.8	2.16	0.03	4.71%	8.35%	1240769	2332692	511325	906718	384281	681642	0.0664	0.1177	9418826	1252052	7534	8166774	818955	432584	70874	3051241	1251539	1180665	4231906	5786031	5791655	14638658	2008-06-30	41.21%	24.87%	0.4872	-	1.41	1.41	1.79	0.73	4.7526	4.688	4.4687	0.1535	0.1329	77.4%	8	17	63
2008-05-28	2008	1	3.28	2.43	-	3.77%	3.77%	1091923	1091923	395393	395393	297361	297361	0.0502	0.0502	8875660	984107	7643	7891553	273103	62727	22620	3050829	210376	187756	3238585	5924312	5924312	18957798	2008-03-31	36.21%	24.82%	0.4935	-	1.33	1.33	2.41	0.55	5.1175	5.0261	4.7325	0.1248	0.1109	64.3%	8	17	60
2008-02-28	2007	4	3.8	3.06	0.036	4.20%	18.98%	1141219	4352333	431764	1912059	344094	1555654	0.0619	0.2648	9341516	1144814	7741	8196702	1450955	519668	898562	1979690	1970623	1072061	3051751	5556557	5874063	21114916	2007-12-31	37.83%	20.33%	0.4659	14.3486	1.39	1.39	2.73	0.55	3.9301	3.8603	3.6047	0.1398	0.1226	57.0%	8	18	72
2007-11-22	2007	3	4.26	3.5	-	7.77%	14.10%	1115382	3211114	755849	1480295	668080	1211560	0.1191	0.2055	9855732	1260397	7841	8595335	974862	680728	643956	1980189	1655590	1011634	2991823	5609404	5895669	20193854	2007-09-30	67.77%	11.63%	0.4362	-	1.46	1.46	2.47	0.53	3.4459	3.3897	3.0693	0.1468	0.1279	55.5%	7	27	66
2007-08-23	2007	2	3.9	3.6	0.0288	4.21%	7.48%	1031878	2095732	389030	724446	305833	543480	0.0528	0.0916	8863033	1600603	7940	7262430	604477	117781	30626	1980232	486696	456070	2436302	5787959	5930377	20026338	2007-06-30	37.70%	21.41%	0.4716	-	1.22	1.22	2.84	0.42	3.2519	3.1879	2.8333	0.2206	0.1806	46.3%	7	27	66
2007-05-24	2007	1	N/A	N/A	-	3.49%	3.49%	1063854	1063854	335416	335416	237647	237647	0.0401	0.0401	8584307	1780104	8037	6804203	390225	72539	11490	1980264	317686	329176	2309440	5928212	5928212	20511613	2007-03-31	31.53%	29.18%	0.4714	-	1.15	1.15	3.01	0.39	3.4966	3.423	3.1506	0.2619	0.2074	45.2%	7	18	72
2007-02-28	2006	4	N/A	N/A	0.03	2.36%	15.12%	1088121	3808493	237406	1138677	147957	945850	0.1350	0.8635	8372327	2114689	8136	6257638	1324946	550764	492582	713913	774182	1266764	1980677	1096209	1095421	16004651	2006-12-31	21.82%	37.72%	0.4549	16.9088	5.71	5.71	2.56	1.81	3.156	3.0808	2.7964	0.3384	0.2526	40.1%	8	19	78
2006-11-23	2006	3	N/A	N/A	-	6.09%	12.87%	995835	2720372	444687	901271	377534	797893	0.3448	0.7285	8410042	2210248	8233	6199794	893820	218260	677501	714473	675560	1353061	2067534	1094974	1095196	12154211	2006-09-30	44.65%	15.12%	0.3235	-	5.65	5.65	1.96	1.89	3.1952	3.1218	2.848	0.357	0.2628	58.6%	11	27	95
2006-08-30	2006	2	N/A	N/A	0.12	2.99%	7.12%	899215	1724537	257048	456584	176879	420359	0.1614	0.3838	6966027	1059024	8331	5907003	471820	158178	299636	714427	313642	14006	728433	1095566	1095187	12818122	2006-06-30	28.59%	31.23%	N/A	-	5.39	5.39	2.17	0.66	1.4564	1.3772	1.0839	0.1795	0.152	N/A	-	N/A	N/A
2006-05-31	2006	1	N/A	N/A	-	4.17%	4.17%	825322	825322	199536	199536	243480	243480	0.2224	0.2224	7119899	1282416	8433	5837483	167541	89296	2589	714648	78245	80834	795482	1094739	1094739	14450554	2006-03-31	24.18%	-	N/A	-	5.32	5.32	2.48	0.73	1.2085	1.1499	0.8842	0.22	0.1801	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Available-for-sale financial assets (A-0)	Deferred tax assets (A-0)	Intangible assets (A-0)	Investment in jointly controlled entity (A-0)	Investment properties (A-0)	Land held for property development (A-0)	Leasehold land use rights (A-0)	Other assets (A-0)	Other investments (A-0)	Property, plant and equipment (A-0)	Receivables (A-0)	Amount due from associated companies (A-1)	Amount due from jointly controlled entity (A-1)	Available-for-sale financial assets (A-1)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Financial assets at fair value through profit and loss (A-1)	Inventories (A-1)	Other investments (A-1)	Restricted cash (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Other liabilities (L-0)	Amount due to associated companies (L-1)	Amounts due to Group Companies (L-1)	Current tax liabilities (L-1)	Dividend payable (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2010	3	2180638	73	1190199	1316	305454	181534	-	-	-	3488045	56226	20783	20	250025	4456241	19658	79368	66872	-	632256	203309	258896	-	108985	87280	13987	126957	153000	618700	665981	-
2010	2	1246527	133	11576	1481	328107	181534	-	-	-	3501442	29905	25085	20	250025	5555013	-	133732	65912	-	-	191492	255232	-	102618	86212	14336	199868	183776	-	596264	-
2010	1	1368391	96	11576	1452	335680	181534	-	-	-	3531883	32864	21772	20	250442	5272672	-	23901	65212	-	-	176252	256612	-	103819	79557	14743	166958	-	-	548946	6818
2009	4	1270128	133	11576	1460	337206	181534	-	-	410714	3561473	34004	18111	20	-	5251039	-	-	62026	20605	-	186003	262419	-	104418	54125	14152	131439	-	-	635300	6920
2009	3	1275175	-	-	1917	16121	181534	91294	-	363735	3533225	12114	18847	-	-	3097815	-	-	60887	2200985	-	219548	237108	-	104126	57095	-	151907	128185	-	588737	7024
2009	2	704410	-	-	1950	16248	181534	91570	-	419781	3578031	11842	15851	-	-	2870095	-	-	59164	2259880	-	206587	241530	-	96139	70169	-	212932	171534	-	530293	7126
2009	1	405781	-	-	1999	16302	181534	91838	-	255644	3609263	11352	16230	-	-	2870278	-	-	61278	1985357	-	197261	231828	-	90558	50931	-	183987	-	-	455723	7239
2008	4	415039	-	-	1864	16552	181534	94357	-	242801	3638491	11352	15332	-	-	2794793	4582	-	60497	1760187	-	185554	227666	-	91303	66915	-	170738	-	-	541234	7338
2008	3	491771	-	-	1780	16621	186117	94626	-	3170	3650897	10647	18769	-	-	2920997	-	-	63190	1654924	-	194785	216629	-	93069	57764	-	176658	127750	-	562780	7437
2008	2	957021	-	-	1647	16780	186117	94901	-	3170	3648369	10102	28739	-	-	2790943	-	-	61126	1440963	-	178948	212483	-	92564	78686	-	213268	152553	76350	426148	7534
2008	1	898949	-	-	1350	16940	186117	95187	-	508349	3657013	9667	19227	-	-	2129044	-	-	62559	1109541	-	181717	207447	-	92328	56873	-	145851	-	76350	405258	7643
2007	4	1505362	-	-	1194	17910	186117	95471	-	535502	3663449	9241	28074	-	-	2256871	-	-	59099	794880	-	188346	202984	-	95226	59747	-	119622	-	175058	492177	7741
2007	3	2122105	-	-	1194	21085	186117	95755	11336	547019	3512248	-	23173	-	-	2190001	-	-	54795	801822	-	289082	190835	-	94820	59060	-	138789	120367	217560	438966	7841
2007	2	-	-	-	2016702	21274	186117	96048	235445	-	3511122	-	22378	-	-	1325849	-	-	55111	1110453	-	282534	193529	460494	86688	54134	-	158278	125067	80024	442389	7940
2007	1	-	-	-	1989046	21463	186117	96319	236130	-	3492140	-	19089	-	-	1225660	-	-	53982	1083780	-	180581	185821	774377	86890	76550	-	130214	-	85913	440339	8037
2006	4	-	-	-	2071625	21653	186117	96601	12688	229181	3519084	-	15203	-	-	1127293	-	-	53273	853384	-	186225	187964	1126883	91550	58074	-	83260	-	87813	479145	8136
2006	3	-	-	-	2082416	21842	186117	-	252088	-	3547902	-	12201	-	-	1049860	-	-	53272	1017751	-	186593	178405	1222286	83559	58881	-	67499	94475	91588	413555	8233
2006	2	-	-	-	1995959	22519	186117	-	252663	-	3529915	-	6805	-	-	260660	-	-	53270	467850	-	190269	181473	133862	71589	49941	-	73328	110213	91278	347340	8331
2006	1	-	-	-	2057739	22148	211034	-	254699	-	3486975	-	8547	-	-	398343	-	-	52720	397216	-	230478	176218	134153	72333	45860	-	97493	-	386117	370242	8433

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Impairment loss	Gain/Loss on disposal of investment in an associate	Reliasation of translation loss on disposal of an equity investment	Gain/loss on dilution of equity investment in associate	Share of net profit of jointly controlled entity
2010	3	1202916	79845	777065	444	42218	51198	0	0	-	-	-	165
2010	2	1226492	108594	755948	-	31234	87677	154	0	-	-	-	29
2010	1	1345170	125580	801485	-	27101	62060	102	110876	-	-	-	8
2009	4	1275555	111169	764656	-	20935	61992	104	0	-	-	-	457
2009	3	1335901	111313	774407	-	25905	68119	102	48580	-	-	-	33
2009	2	1202256	108491	725017	-	21231	59562	113	0	-	-	-	49
2009	1	1178053	110337	730847	-	31469	60393	99	32735	-	-	-	135
2008	4	1329102	143446	769297	1	37786	61350	99	781502	-	682	-	84
2008	3	1224909	124295	745406	0	14848	-	97	-	-	-	-	133
2008	2	1240769	127153	725266	1	34706	58283	109	-	-	19102	-	298
2008	1	1091923	98130	663949	1643	27722	58815	98	-	-	-	-	155
2007	4	1141219	87770	679030	2000	35658	64083	100	-	0	-	0	0
2007	3	1115382	87868	655380	33350	311643	-	99	-	-	-	-	17554
2007	2	1031878	83294	627086	3110	21834	65699	97	-	-	-	0	31213
2007	1	1063854	97868	659094	3480	22687	57695	99	-	-	-	63210	94066
2006	4	1088121	89546	624478	4289	25541	62213	97	-	-	-	-	185276
2006	3	995835	67251	589841	2770	8638	45659	98	-	-	-	-	78484
2006	2	899215	80271	540343	3696	9350	49940	102	-	-	-	-	57538
2006	1	825322	43849	547570	6305	19980	45414	95	-	-	-	-	46477

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING

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●CHANGES IN SHAREHOLDING

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