MONEY MASTER

Genting Malaysia Bhd (GENM) saw its share price fall for a second day, as growing concerns over a potential  credit ratings downgrade  overshadow optimism surrounding its front-runner status for a  downstate New York casino licence . CreditSights, a Fitch Solutions unit, warned that both  Genting Bhd  and subsidiary  Genting Malaysia  face elevated downgrade risks due to  high leverage and weak cash flow . Genting’s latest pro-forma results showed it breached downgrade triggers for  cash flow, leverage and EBITDA  at both Moody’s and Fitch. Genting Bhd’s takeover bid has lifted its stake in Genting Malaysia to  73.133% . GENM’s share price dropped as much as  3.1%  to RM2.18 at market open before recovering slightly to RM2.19, valuing the company at RM12.4 billion. Analysts Boost Earnings Forecasts on New York Optimism Both  TA Research  and  Hong Leong Investment Bank (HLIB)  raised their earnings proj...

Genting Bhd. (3182.MY) and Genting Malaysia Bhd. (4715.MY) have been removed from the FTSE Bursa Malaysia KLCI Index due to declining market capitalizations, Bursa Malaysia announced Thursday. Index Changes Removed Constituents: Genting Bhd. Market Cap: RM13.84 billion (~$3.11 billion). Genting Malaysia Bhd. Market Cap: RM12.59 billion . New Additions: 99 Speedmart (5326.MY). Gamuda Bhd. (5398.MY). The changes are part of the semiannual index review and will take effect on Dec. 23, 2024 . The next review is scheduled for June 2025 . KLCI Eligibility Criteria To remain in the benchmark index, companies must rank among the top 30 largest firms by market capitalization in Malaysia. Financial Performance Genting Bhd. Q3 2024 Net Profit: Halved to RM223.8 million , down from the previous year. Reason: Declines in revenue for its leisure and hospitality division . Genting Malaysia: Faces similar earnings pressures, contributing to its removal from the index. Implications Genting an...

Genting Bhd   reported a   57% drop   in   3QFY2024 net profit   to   RM223.8 million , down from   RM520.52 million   a year earlier, primarily due to   RM207.3 million in property, plant, and equipment (PPE) write-offs , compared to   RM1.3 million   last year. Revenue fell   11.2%   year-on-year to   RM6.54 billion , marking its lowest since   1QFY2023 . Key Segment Highlights: Leisure and Hospitality: Resorts World Sentosa (RWS):  Lower  VIP rolling volume  and  win rate  reduced revenue and EBITDA. Resorts World Genting (RWG):  Higher operating expenses led to lower EBITDA. UK and Egypt:  Increased business volume boosted revenue and EBITDA. US Resorts (New York City & Bimini):  Lower revenue and higher costs reduced EBITDA. Resorts World Las Vegas (RWLV):  Occupancy at  85.1%  and Average Daily Rate (ADR) at  USD244 , impacted by an  abnor...

Genting Malaysia Bhd (KL) has announced that two of its subsidiaries, Genting New York LLC and Genny Capital Inc, have priced an additional US$100 million (RM427 million) of 7.25% senior unsecured notes due in 2029. This follows a prior offering of US$525 million of the same notes last week. Proceeds from these additional notes will be used to repay existing debts. Post-issuance, Genting Malaysia’s gross borrowings are expected to increase to RM17.69 billion from RM14.98 billion , with net gearing rising to 1.04 times from 0.81 times . Supermax Corp Bhd (KL) is set to begin commercial glove production at its first US manufacturing facility in Texas by January 2025 . Its US-based unit, Maxter Healthcare Inc, will start testing and commissioning its initial production lines in December 2024. The first phase will have a production capacity of 4.8 billion pieces of gloves per annum , aiming to reach half capacity by next year. The full expansion is expected to be completed by the fo...

Genting Bhd’s new floating liquefied natural gas ( FLNG ) facility is expected to significantly enhance the company’s earnings, contributing an estimated RM613 million to its net profit annually starting from FY2027 , according to a recent note from CIMB Securities . The new facility is projected to add RM1.27 per share to Genting's fair value. CIMB estimates that the FLNG could generate annual revenue of US$704 million (RM3.1 billion) , based on a production capacity of 65.2 MMBtu (one million British thermal units) and an LNG price of US$10.80/mmbtu (the 10-year average). The expected net profit margin is set at 20% from FY2027 onwards. The research firm also highlighted that funding for the FLNG facility is not expected to be an issue for Genting, given its cash reserves of RM7.2 billion at the end of the second quarter of 2024, excluding cash held by its subsidiaries Genting Malaysia Bhd (GENM), Genting Singapore Ltd (GENS), and Genting Plantations Bhd (GENP). Furthermore...

Genting Malaysia Bhd’s indirect wholly-owned subsidiaries, Genting New York LLC (Genny) and its unit Genny Capital Inc, have priced a $525 million offering of 7.25% senior unsecured notes due in 2029. The offering aims to refinance existing debt. Key Takeaways: Purpose of the Notes Offering : The issuance by Genny is intended to refinance current indebtedness. Concurrently, Genny plans to enter a new senior secured credit facility that includes a $775 million delayed draw term loan facility and a $150 million revolving credit facility. Exchange and Ratings : The notes have received approval in principle for listing on the Singapore Exchange Securities Trading Ltd. S&P Global Ratings assigned a BB+ (stable) rating, while Fitch Ratings Ltd rated the notes BBB- (negative). Targeted Buyers and Legal Compliance : The notes are offered only to qualified institutional buyers under the exemption from registration requirements of the US Securities Act of 1933 and to certain non-US persons u...

Genting Singapore reported a strong financial performance for the first half of FY2024, with earnings increasing by 29% year-on-year to $357 million. The company achieved a revenue of $1.35 billion for the period, reflecting a 25% growth compared to the same period last year. Adjusted EBITDA also improved by 26% year-on-year, reaching $570.8 million. Key Highlights: Gaming and Non-Gaming Revenue Growth: Gaming revenue rose by 28% year-on-year to $957.6 million, while non-gaming revenue grew by 19% to $333.2 million, contributing to the overall positive financial results. Challenges in 2QFY2024: Despite the strong first-half performance, Genting Singapore faced some headwinds in the second quarter of FY2024. Geopolitical issues, along with high transport and accommodation costs, impacted growth. Adjusted EBITDA for 2QFY2024 was lower at $201.3 million, due to seasonal factors, a significantly lower VIP hold than in the first quarter, and the temporary closure of Hard Rock Hotel for re...

Retain HOLD with a higher target price (TP) of RM12.21 Highlights FFB output growth to mitigate lower palm prices…  GENP registered FFB output growth of 28.5% yoy in 1Q17 , boosted by yield recovery (as lagged impact of El Nino subsided since end-FY16) and more areas moving into mature and higher yielding bracket (for its plantation estates in Indonesia). Management remains confident that the strong FFB output growth achieved in 1Q17 will sustain into the next few quarters (with output ratio of 45:55 in 1H and 2H), underpinned by young age profile for its plantation operations in Indonesia (with average age of only ~ 5 years as at end- FY16), which will in turn cushion lower palm product prices. The opening of GHPO to boost JV’s earnings from 2H…  We expect the opening of Genting Highland Premium Outlet (GHPO, likely by end-2Q) to perform as well as Johor Premium Outlets (JPO), if not better, as it will be serving a more diverse group of shoppers vis-à-...