Genting SP: was fined a total of $530k for 4 breaches of regulations. 3 of the breaches involved failures of surveillance cameras and lapses in footages, which occurred just after the casino opened, and mgt has since rectified these issues. The other breach involved senior mgt paying cash to media representatives who were Sporeans and PRs, for their entry levy into the casino...
Nevertheless, the bottom line impact on GENS should be negligible, compared to the $1.8b EBITDA (consensus estimates) it is expected to make this yr.
Stock currently trades at 21X FY11E P/E. The Street largely has a Buy on the stock with TP ranging from $2.30 - $2.90.
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Genting Sing
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GenSp starts to move up again
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krisluke
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20-May-2011 00:42
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Genting Singapore PLC – Buy (Maintained) Closing Price SGD 2.08 Target Price SGD 2.36 (+13%) 52w k High (11/9/2010) 2.35 52w k Low (5/21/2010) 0.91 1. Rubs CRA the wrong way 2. Invests in non-core • Genting was fine a total of S$530,000 by CRA for reimbursing entry levy and breaches in Casino Control (Surveillance) Regulations. Amount has insignificant impact on financials. • Genting ventures into unrelated field in Natural resources through investments in Gold Nature Invested Limited for US$60 million at 3.75x book value. • We maintain our Buy recommendation and fair value of S$2.36 The breaches Casino Regulatory Authority of Singapore (CRA) had previously issued a letter of censure on 31st Dec 2010 to RWS for making changes to its casino surveillance system without prior approval from CRA. On 18th May 2011, CRA took further issues with RWS contraventions of the regulations by fining it a total of S$330,000 for the following: - S$150,0000 Failure to ensure that casino surveillance footage from 22 cameras during the period 29 March 2010 to 2 April 2010 was retained for the specified period as required. - S$30,000 Failure to ensure that casino surveillance footage from 18 cameras during the period 29 March 2010 to 30 March 2010 was retained for the specified period as required. - S$150,000 Did not have a failure notification system to provide an audible as well as visual notification of specific failures in the casino surveillance system. Source: CRA CRA further fines RWS another S$200,000 for reimbursing entry levy payable by Singapore citizens and permanent residents. On 15 July 2010, a senior management staff of RWS had provided cash to SCPR media representatives for the purpose of paying for the entry levy payable by them for entry into RWS’ casino premises to cover the launch of the Ladies Club. Impact on financials RWS earned NPAT of S$305.4 million in 1Q11 and our projected net profit for FY11 is S$1.27 billion. The S$0.53 million fine is thus small change to the company. Investments in Gold Nature Investments Limited Genting Singapore paid US$60 million for Gold Nature Investments Limited. This represents PB of 3.75x base on NAV of US$16 million. The new subsidiary is 51% vested in Montbella Limited which has investments in natural resource ventures. The investment is not expected to have any material impact on consolidated net tangible assets and earnings per share of the Company for the financial year ending 31 December 2011. In our initiation report dated 14th January 2011 (page 2), we highlighted the roles of each listed entities and under Genting Singapore, its core business is to focus on running RWS and in bidding for projects related to the construction, development and management of similar sized resorts. No where did it say investments in natural resources. In fact, this portfolio appears more suited for Genting Plantations Berhad which has many oil palm plantations in Malaysia. As at Dec 2010, Genting Plantations had cash stash of MYR 755.7 million (S$309 million) which is sufficient to pay for Gold Nature Investments. But of course Genting Singapore has an even larger cash hoard of S$3.46 billion. But when we consider its net debt position, Genting Singapore is in fact in a worse off position with net cash of S$6 million versus Genting Plantations’ S$205 million. The Genting Group had on a few occasions reshuffled the portfolios amongst the subsidiaries through sales and purchase agreements with one another. Hence, we are not surprise if the newly acquired subsidiary is divested to a sister entity in future. Hopefully at a higher valuation. Meanwhile, Genting Singapore can afford to pay cash for Gold Nature Investments Limited considering its cash hoard and operating cash inflow of S$383.4 million in 1Q11. Though we do not see the rationale in Genting Singapore’ non-core investment as it does not align with the company’s long term strategic growth, we choose to maintain a more neutral stance. Outlook for 2Q11 results Cash will be lesser by S$75 million due to investments in Gold Nature as well as the CRA fine. We further expect core net profit to be lower than 1Q11 as second quarter is unlikely to repeat stellar win rate of 3.8% and as gaming activities become slightly more muted without the CNY atmosphere. However, given the weaker performance in USS and Hotel ADRs in 1Q11, these may turn in relatively stronger contributions for 2Q11. Furthermore, the disposal of 43,092,136 Rank shares for 150 pence in May 2011 will contribute an additional S$12.9 million. Hence, we still expect Genting to meet our expectations. We thus maintain our Buy call on Genting Singapore and fair value estimate of S$2.36 base on 15x EV/EBITDA. |
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Incinerate13
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19-May-2011 21:18
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I think genting sp is pretty stable even big news fine 1/2 mils share price only drop few cents. |
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krisluke
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19-May-2011 20:46
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Isolator
Supreme |
19-May-2011 15:46
Yells: "STI is hard landing to below 2000..." |
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2.02 can try to buy.... | ||||
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Punter77
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19-May-2011 15:33
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This counter cannot make it liao lah.... Totally controlled by BB and NOBODY knows exactly when they intend to raise up the price or bring down the price.... Not even technical charts nor fundamental news can affect the price up/down.... For the time being, it seems that BB wants it to maintain @ 2.07~2.08.... Subsequently, it can spurs up to 2.15~2.20 or goes down to 2.00.... Those who intend to long can buy anytime now (dun bother to time it) and keep it for the next 1 to 2 years to possibly see 10~30% returns..... Short time trader can continue to short or long for 5~10cts profits or even loss possibly.... | ||||
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limkt009
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19-May-2011 11:13
Yells: "Watch your front, grab $$$$$ at your own time" |
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do u think still cn buy.
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pharoah88
Supreme |
19-May-2011 11:03
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Summary: The Ministry of Trade and Industry (MTI) has upgraded Singapore’s growth forecast for 2011 to 5.0-7.0%, up from its previous forecast of 4.0-6.0% this after the economy recorded a strong growth in the first quarter. In 1Q11, Singapore’s economy grew by 8.3% YoY, spot on the street’s expectations. On a seasonally-adjusted QoQ annualized basis, the economy expanded by 22.5%, compared to 3.9% in 4Q10. Growth was broad based and led by the manufacturing industry, which expanded by 75.4% QoQ, compared to a small growth of 0.7% in 4Q10. The increase was driven by higher production in the biomedical manufacturing, precision engineering and electronic clusters. The construction sector grew by 13.3% QoQ, reversing the contraction in the preceding two quarters, and was largely driven by an increase in public sector construction activities. The financial sector grew by 27.1% QoQ, following the 16.9% increase in 4Q10, due to increased lending and insurance activities. Tourism-related hotels & restaurants sector and “other services” sector remained robust, with QoQ growth rates of 9.7% and 2.9%, respectively.(Research Team) |
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eplepl
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19-May-2011 10:43
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strong still !
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pharoah88
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19-May-2011 10:30
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Thursday: 19 MAY 2011 CNA PRIMETIME MORNING EX-Minister GEORGE YEO testing the iFLYER at RWS Universal Studio cOUld nOt waIt fOr it tO be OPEN ? ? ? ? Public Operating Licence not issued ? ? ? ? SINGAPOREANS cannot ENJOY the SAME FLIGHT SIMULATION ? ? ? ? like MALAYSIANS do at GENTING HIGHLANDS sInce many years Ahead already ? ? ? ? W H Y sO SAD ? ? ? ? |
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tmchai
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19-May-2011 09:29
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just wondering the post closing at 17:05 @ 2.07 for 2,647 lots were the consolidated transactions?
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parimas8
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18-May-2011 23:41
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post closing 17:05 Buy Up @ $2.07 for 2,647lots + 4,817 lots. are these forced position closure on shorts below this price of $2.07? |
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eplepl
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18-May-2011 21:42
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Half a million, a bit too little for such a big casino. One high net worth person can cover the fine already.
Really got to see tomorrow market to make this assumption. Maybe sands might get this fine too...... In a fine city ?
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limkt009
Veteran |
18-May-2011 20:50
Yells: "Watch your front, grab $$$$$ at your own time" |
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Jialat tmr lau sai liao.... | ||||
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bsiong
Supreme |
18-May-2011 20:14
Yells: "The Greatest Wealth is Health" |
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Singapore’s Casino Regulatory Authority (CRA) said on Wednesday it has fined Genting Singapore’s (GENS.SI) casino Resorts World at Sentosa a total of $530,000 for four breaches of its rules. Resorts World at Sentosa was fined for reimbursing the entry levy payable by Singapore citizens and permanent residents, as well as for failing to ensure that casino surveillance footage from several cameras was retained for the specific period required by CRA, the regulator said in a statement. " The disciplinary action taken serves to remind casino operators to act responsibly to uphold the integrity of social safeguards put in place by the authorities," said T. Raja Kumar, Chief Executive of CRA. Las Vegas Sands’ Marina Bay Sands is the only other casino resort to be allowed in the city-state after Singapore legalised casino gaming in 2005 as part of a plan to boost tourism. Genting’s US$4.8 billion ($6 billion) Resorts World at Sentosa opened its doors in February last year, making it the world's third most expensive casino complex after MGM's CityCentre in Las Vegas and Marina Bay Sands. |
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SGG_SGG
Master |
18-May-2011 19:16
Yells: "karma karma karma chameleon" |
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SINGAPORE: The Casino Regulatory Authority of Singapore (CRA) has fined Resorts World Sentosa (RWS) S$530,000 for four breaches under the Casino Control Act and its regulations. http://www.channelnewsasia.com/stories/singaporelocalnews/view/1129645/1/.html?cid=dlvr.it |
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Incinerate13
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18-May-2011 18:49
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Sian this counter morning good then afternoon to evening go back to sq 1. | ||||
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hlfoo2010
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18-May-2011 17:26
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2.07 for G13/F83/600 | ||||
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pharoah88
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18-May-2011 09:41
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iFLYER at RWS Universal Studio WHY is the iFLYER Operations Licence nOt IssUed ? ? ? ? Any gOOd reasOn ? ? ? ? |
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zhixuen
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18-May-2011 08:27
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You're right man. The management team run the company instead of securities firm :-) Then who play the company shares? securities firm? Fund Manager? speculation players? or company management team?
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tchekchuan
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18-May-2011 08:23
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Is this good news or bad news? what do you guys think? SUper sian tat i bought 10 lots at 2.18 last thursday after they announced the HUGE profit they are earning, but..................
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