KLCI Stock - GENTING / 3182 - 2011 Quarter 4

GENTING BERHAD


My notes based on 2011 quarter 4 report (number in '000):-
- Higher revenue than FY10Q4 due to better performance from all segments

- The increase in revenue from the leisure and hospitality business in Malaysia than FY10Q4 was mainly due to overall higher volume of business despite a lower hold percentage in the premium players business

- Revenue from the US segment included construction revenue from the development of Resorts World Casino New York City but mainly from the operations of Resorts World Casino New York City. Consequently, an adjusted EBITDA of RM23.6 million mainly from the operations of Resorts World Casino New York City was recorded whilst construction loss of RM40.9 million was incurred due to cost overrun from the development of Resorts World Casino New York City

- Higher revenue and pbt from the Power Division was due to higher energy charge in the Kuala Langat power plant and increased tariff rate in the Meizhou Wan power plant

- Higher revenue than FY10Q4 mainly due to an improvement in FFB production on the back of continued good yields, especially from the Sabah estates however pbt was lower due to lower palm products selling prices and higher operating expenditure for the operations in Malaysia

- Higher revenue and pbt from the Property Division was contributed mainly by the property segment of GENP, which improved due to better demand for its industrial and commercial properties

- The profit before tax for the current quarter included a reversal of RM308.6 million in respect of previously recognised impairment loss which relates to the UK casino licences and a net fair value gain of RM64.4 million on derivative financial instruments. The previous year’s corresponding quarter’s profit before tax had included loss on discontinuance of cash flow hedge accounting using interest rate swaps of RM145.4 million arising from settlement of interest rate swaps

- Estimate next 4Q eps after 2011 Q4 result announced = 33166943*0.09/3701553 = 0.8064, estimate PE on current price 10.6 = 13.05(DPS 0.08)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.1609*0.9*4 = 0.5792, estimate highest/lowest PE = 19.41/17.16 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1713*0.9*4 = 0.6167(exclude RM116.7 million one time gain), estimate highest/lowest PE = 17.77/13.44 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.7531*1.1 = 0.8284, estimate highest/lowest PE = 13.67/11.25 (DPS 0.078)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.14*4*1.05 = 0.588, estimate highest/lowest PE = 19.91/16.59 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0945*4 = 0.3781, estimate highest/lowest PE = 31.49/26.22 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1985*4 = 0.794, estimate highest/lowest PE = 13.53/11.22 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2813*1.15 = 0.3235(15% increased), estimate highest/lowest PE = 21.54/2 (DPS 0.072)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0661*4 = 0.2644, estimate highest/lowest PE = 26.77/23.18 (DPS 0.072)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0999*4 = 0.3996, estimate highest/lowest PE = 19.09/15.62 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0577*4 = 0.2308, estimate highest/lowest PE = 33.23/27.64 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0574*4 = 0.2296, estimate highest/lowest PE = 28.88/23 (DPS 0.07)

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