Company Info
My Analysis
Research House
Accounting Ratio
My notes based on 2010 quarter 4 report (number in '000):-
- The Group’s revenue in the current quarter was RM1,558.5 million, which is an increase of 22% compared with RM1,275.6 million in the same quarter last year, the higher revenue mainly attributable to:
1. revenue of RM188.4 million of the casino business in United Kingdom (“UK”), which the Group acquired on 15 October 2010
2. the leisure and hospitality business in Malaysia which reported higher revenue by RM91.2 million, an increase of 7%. This increase was mainly due to better luck factor in the premium players business
- The Group’s profit before tax in the current quarter was RM503.2 million compared with RM469.4 million in the corresponding quarter last year, an increase of 7%. The adjusted EBITDA of the leisure and hospitality business in Malaysia was RM547.2 million compared with RM510.3 million, which increased by 7%. The adjusted EBITDA margin was 40% which is consistent with the margin in the corresponding quarter last year. The casino operations in UK reported an adjusted EBITDA of RM18.3 million
- The Group’s revenue in the current financial year was RM5,333.1 million, which is an increase of 7% compared with RM4,991.8 million last year. The higher revenue was mainly attributable to:
1. contribution of revenue of RM188.4 million from the casino business in UK, which the Group acquired on 15 October 2010
2. the leisure and hospitality business in Malaysia which registered higher revenue by RM143.4 million, representing an increase of 3% compared with 2009. This increase is mainly due to better luck factor in the premium players business
- The adjusted EBITDA of the leisure and hospitality business in Malaysia was RM1,980.4 million, with an adjusted EBITDA margin of 39%. This is slightly lower when compared with the adjusted EBITDA of RM1,996.3 million for the corresponding period last year, which reported an EBITDA margin of 41%. The lower adjusted EBITDA in 2010 is mainly due to higher payroll costs and promotional expenses
- The Group’s profit before tax, of RM1,731.5 million in the current financial year was lower by 2% compared with RM1,764.6 million in the corresponding financial period last year. The current financial year’s profit before tax was lower due mainly to:
1. an impairment charge of RM110.9 million whereas last year’s profit before tax included an impairment charge of RM81.3 million
2. the pre-operating expenses incurred for the development and operations of a video lottery facility at the Aqueduct Racetrack in the City of New York, United States of America (“Resorts World New York”) of RM23.9 million
- Excluding the impairment losses and pre-operating expenses associated with Resorts World New York, the Group’s profit before tax would have increased by 1%
- The Group registered higher profit before taxation of RM503.2 million in the current quarter compared with RM416.2 million in the preceding quarter ended 30 September 2010. The higher profit is mainly due to better luck factor in the premium players business and overall higher volume of business in the leisure and hospitality business in Malaysia
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2241*1.1 = 0.2465, estimate PE on current price 3.35 = 13.27(DPS 0.079)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0591*4 = 0.2364, estimate highest/lowest PE = 15.15/13.16 (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)
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| Market Capital (Capital Size) | 19,819,767,970 (Very Large) |
| Par Value | RM 0.10 |
My Analysis
| Forecast P/E now | (3.35-0.08)/0.2465 = 13.27 (Moderate) |
| Target Price | 3.94+0.08 = 4.02 (PE 16.0, EPS 0.2465, DPS 0.08) |
| Decision | BUY |
| Comment | Revenue increased 29.6% and also higher than preceding year corresponding quarter 22.2%, eps increased 8% and also higher than preceding year corresponding quarter 1.6%, both negative free and net cash flow largely increased, liquidity ratio decreasing from high to moderate level, gearing ratio increasing from low to below moderate level, payables period increasing, all segments better revenue, casino UK contributing positive earning, Resort World New York expected to open in the second half of 2011 |
| First Support Price | 3.2 |
| Second Support Price | 3.0 |
| Risk Rating | MODERATE |
Research House
| Credit Suisse Target Price | 3.3 (2011-01-14) |
| CIMB Target Price | 4.3 (2011-02-07) |
| ECM Target Price | 3.52 (2011-02-24) |
| Maybank Target Price | 3.67 (2011-02-24) |
| RHB Target Price | 4.45 (2011-02-24) |
Accounting Ratio
| Return on Equity | 11.00% |
| Dividend Yield | 2.39% |
| Profit Margin | 32.29% |
| Tax Rate | 28.04% |
| Asset Turnover | 0.3607 |
| Net Asset Value Per Share | 2.04 |
| Net Tangible Asset per share | 1.49 |
| Price/Net Tangible Asset Per Share | 2.22 |
| Cash Per Share | 0.68 |
| Liquidity Current Ratio | 2.3991 |
| Liquidity Quick Ratio | 2.3586 |
| Liquidity Cash Ratio | 2.1107 |
| Gearing Debt to Equity Ratio | 0.2736 |
| Gearing Debt to Asset Ratio | 0.2148 |
| Working capital per thousand Ringgit sale | 47.9% |
| Days to sell the inventory | 7 |
| Days to collect the receivables | 30 |
| Days to pay the payables | 101 |
My notes based on 2010 quarter 4 report (number in '000):-
- The Group’s revenue in the current quarter was RM1,558.5 million, which is an increase of 22% compared with RM1,275.6 million in the same quarter last year, the higher revenue mainly attributable to:
1. revenue of RM188.4 million of the casino business in United Kingdom (“UK”), which the Group acquired on 15 October 2010
2. the leisure and hospitality business in Malaysia which reported higher revenue by RM91.2 million, an increase of 7%. This increase was mainly due to better luck factor in the premium players business
- The Group’s profit before tax in the current quarter was RM503.2 million compared with RM469.4 million in the corresponding quarter last year, an increase of 7%. The adjusted EBITDA of the leisure and hospitality business in Malaysia was RM547.2 million compared with RM510.3 million, which increased by 7%. The adjusted EBITDA margin was 40% which is consistent with the margin in the corresponding quarter last year. The casino operations in UK reported an adjusted EBITDA of RM18.3 million
- The Group’s revenue in the current financial year was RM5,333.1 million, which is an increase of 7% compared with RM4,991.8 million last year. The higher revenue was mainly attributable to:
1. contribution of revenue of RM188.4 million from the casino business in UK, which the Group acquired on 15 October 2010
2. the leisure and hospitality business in Malaysia which registered higher revenue by RM143.4 million, representing an increase of 3% compared with 2009. This increase is mainly due to better luck factor in the premium players business
- The adjusted EBITDA of the leisure and hospitality business in Malaysia was RM1,980.4 million, with an adjusted EBITDA margin of 39%. This is slightly lower when compared with the adjusted EBITDA of RM1,996.3 million for the corresponding period last year, which reported an EBITDA margin of 41%. The lower adjusted EBITDA in 2010 is mainly due to higher payroll costs and promotional expenses
- The Group’s profit before tax, of RM1,731.5 million in the current financial year was lower by 2% compared with RM1,764.6 million in the corresponding financial period last year. The current financial year’s profit before tax was lower due mainly to:
1. an impairment charge of RM110.9 million whereas last year’s profit before tax included an impairment charge of RM81.3 million
2. the pre-operating expenses incurred for the development and operations of a video lottery facility at the Aqueduct Racetrack in the City of New York, United States of America (“Resorts World New York”) of RM23.9 million
- Excluding the impairment losses and pre-operating expenses associated with Resorts World New York, the Group’s profit before tax would have increased by 1%
- The Group registered higher profit before taxation of RM503.2 million in the current quarter compared with RM416.2 million in the preceding quarter ended 30 September 2010. The higher profit is mainly due to better luck factor in the premium players business and overall higher volume of business in the leisure and hospitality business in Malaysia
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2241*1.1 = 0.2465, estimate PE on current price 3.35 = 13.27(DPS 0.079)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0591*4 = 0.2364, estimate highest/lowest PE = 15.15/13.16 (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)
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