Genting Bhd: Still growing                                                                                                                                                                                              Outperform

2QFY11 Results / Briefing Note

¨            1HFY11 normalised net profit was in line with our and consensus expectations, coming in at 51-53% of FY11 projections.

Genting recorded a net EI gain of RM98m in 2Q11, bringing total EI for 1HFY11 to RM31.9m.

Genting declared a gross interim DPS of 3.5 sen (less 25% tax), in line with our forecasts.

Genting Plantation: Production growth targets raised, but risk of wet weather impact?                    Market Perform

2QFY11 Results / Briefing Note

¨            Genting Plantation’s (GP) 1HFY11 net profit was in line with our and consensus expectations, coming in at 52-53% of our and consensus FY11 forecasts. Although the 2H of the year is traditionally the peak production period, we believe the current lower CPO prices would offset the impact of the higher production in 2HFY11.

In 1HFY11, GP’s core net profit rose 72% on the back of a 44% increase in turnover. The increase was due to higher CPO (+37% yoy to RM3,492/tonne) and PK (+88% yoy to RM2,766/tonne) prices achieved, as well as higher FFB production (+13% yoy).

Genting Bhd: Signed deal with consortium to buy Pan Malaysian Pools for RM2.1bn?                                     

Outperform

 

News Update

 

¨            It was reported in the Edge daily that Tanjong plc yesterday signed an agreement to sell its entire stake in Pan Malaysia Pools (PMP) for RM2.1bn to a consortium comprising Genting’s Tan Sri Lim Kok Thay, Hong Leong Group’s Tan Sri Quek Leng Chan, Lion group’s Tan Sri William Cheng and Tan Sri Chua Ma Yu. The businessmen’s bid includes plans to eventually list the NFO.

Included in the winning bid is a charity element, whereby a portion of PMP’s profits would be allocated to charitable causes, including schools.

 

RHBRI Top Picks

 

Top Story: Genting Plantation – Rebound in FFB production offset by weaker CPO prices                Market Perform

Visit Note

¨            Six key takeaways:

1) Rebound in FFB production

2) Minimal forward sales done

3) No significant labour shortage currently, not following Sime to raise wages yet

4) Likely to bring in JV partner to produce high-end downstream products?

5) Property launches accelerating in Johor and

6) Chelsea Premium Outlets could add 1-2% to FY12’s net profit, based on conservative estimates.

Saturday June 25, 2011

Genting HK to raise RM600mil bonds

Genting Malaysia:                                                     

News Update

¨            Genting New York company official said that Resorts World New York is looking to open on 1 Oct 2011.

According to the official, the video lottery terminals at GNY are expected to rake in US$380/machine/day. In addition, the racino was originally scheduled to have 4,525 slot-like video lottery terminals, but will now have an additional 475 electronic table games such as roulette, bringing the total number to 5,000.

¨            Our forecasts are unchanged, but we have raised our SOP-based fair value to RM4.60 (from RM4.40). However, that our DCF value for GNY has assumed a more conservative GGR of US$330/machine/day. We maintain our Outperform call on the stock.

Genting Plantation: Good deal on downstream acquisition, but now what?                          Market Perform

4QFY11 Results/Briefing Note

¨            1QFY11 net profit was in line with expectations, coming in at 21-22% of our and consensus FY11 forecasts. Core net profit rose 36% on the back of a 28% increase in turnover due to higher CPO (+44% yoy to RM3,682/tonne) and PK (+116% yoy to RM3,038/tonne) prices achieved, offset slightly by a decline in FFB production (+3% yoy).