MONEY MASTER

Maintain outperform with unchanged target price (TP) of RM0.50   MK Land started FY17 with a net profit of RM4.1m (+46.4% YoY, -1.7% QoQ), which was below expectations. The 1Q net profit only constituted 15% of our full year estimates. With no meaningful launch in FY16 in the Klang Valley and while existing inventory is still slow moving, revenue dropped 21.3% QoQ. As reported, we already expected the Group’s earnings to remain slow due to the lack of new launches and absence of land sale. The timing of new projects are still sketchy, given current tough operating environment. Pending clarity from Management, we keep our earnings unchanged for now and maintain our  Outperform  call from a valuation standpoint with  TP  of  RM0.50 , pegged at a c.70% discount to our RNAV estimate. Limited new launches.  So far, it has only launched the first phase of its Residensi Suasana @ Damai condominium project. We understand that only c.65% of the...

Upgrade to OUTPERFORM from neutral call with revised target price (TP) of RM9.80 Genting Berhad (GENT) reported a 3Q16 net profit of RM577.2m, increasing by 60% YoY mainly due to lower fair value loss on derivative instruments and lower impairment losses. After stripping out these losses and other exceptional items, 9MFY16 core net profit accounted for 76% of our full-year estimates. 3Q16 adjusted EBITDA was down 12% YoY largely due to net foreign exchange losses on financial assets compared with net foreign exchange gain in the previous year recorded under the investments & others segment. At adjusted EBITDA level, most key segments posted higher contribution i.e. leisure & hospitality and plantation. Our SOTP-based TP is revised up from RM9.00 to RM9.80 due to the upward revision in our TP for Genting Malaysia (GENM) as well as a higher consensus valuation on Genting Singapore (GENS). Given the recent retracement in its share price, we now see value in GENT and...

Maintain neutral call with raise the target price (TP) to RM4.60 Genting Malaysia (GENM) reported a 70.3% increase in 3Q16 net profit to RM555.7m. Stripping out gain on disposal of assets, reversal of previously recognized impairment losses and tax relief on capex, 9M16 core net profit of RM960.3m came in within expectations. Its UK and US operations delivered stronger performance on the back of higher hold percentage, higher bad debt recovery and pick-up in business volume. We maintain our earnings forecasts for FY16-18F. However, we raise our SOTP-based TP to from RM4.05 to  RM4.60  to factor in higher earnings multiples for its UK and US operations given the improvement in earnings visibility. We maintain our  Neutral  rating on GENM. We believe any meaningful earnings contribution from GITP Phase 1 project would only be felt towards end 2017. 3Q16 revenue rose 8.5% YoY on stronger Leisure & Hospitality contribution.  The group achieved a r...