Benjitan

Thank you very much for the posting.

Target Price US$0.28. Upside +64.7%. UOBKH report:

We initiate coverage on Genting Hong Kong (GENHK) with a BUY call and sum-of-the-parts (SOTP) based target price of US$0.28. GENHK’s operational earnings turned around from 2H09 and are set to sail through 2012, propelled by a recovery in the North American and Asian cruise operations, and debut on the Manila casino scene. Sailing into a highly cashgenerative period, GENHK trades at only 6.8x and 9.3x adjusted 2011 EV/EBITDA and fully diluted PE multiples, well below global peers’.

Cruise operations all shaped up. The cruise operations are finally shipping out impressive profits, thanks to active fleet and aggressive cost management, and improving industry dynamics. The 50%-owned US division Norwegian Cruise Line (NCL) now features yields comparable to that of the world’s largest cruise operators, and the Asian division Star Cruises continues to grow its gaming revenues as new markets and strong gaming growth in Hong Kong have buffered rising competition from land-based casinos in Singapore.

RWM shipping back impressive returns. We understand that 50%-owned Resorts World Manila (RWM) has been raking in a daily gross win of close to US$1.0m ytd, which could deliver an EBITDA payback period of under five years on GENHK’s cash investment of US$335m. RWM is projected to deliver net profits of US$39.1m and US$67.7m to GENHK in 2010-11.

Stock Impact

Rising tide for earnings. GENHK reported a half-yearly core net profit of US$22.7m in 2H09, the first since 2H07, and we project its net profit to rise to US$95.9m and US$145.5m in 2010-11. 2H09’s impressive turnaround reflects a successful business and cost restructuring exercise at the US and Asian cruise operations. 2010-11 earnings are further propelled by GENHK’s maiden foray into the Manila casino market.

Full impact of cost-cutting initiatives to be felt in 2010. Star Cruises will benefit from the following: a) the absence of 2009’s US$9m retrenchment costs, and b) US$15m annual savings by relocating its main terminal from Klang, Malaysia to Manila, the Philippines. Meanwhile, NCL has been steadily reducing its net cruise cost (excluding fuel) per available cruise day from US$120-130 to US$107.80 in 1Q10, bringing its net cruise cost closer to that of industry leaders Carnival Corp (CCL) and Royal Caribbean Cruise (RCL).

Key initiatives undertaken: a) right-sizing its cruise operation serving Hawaii (from three ships to one), b) reflagging US-flagged ships to become international-flagged ships (thus eliminating the high salary cost requirement of US-flagged ships), eg payroll per cruise day dropped from US$39.70 in 2008 to US$34.40 in 2009, c) disposing of older (and lower-yielding) cruise ships, and d) significantly reducing interest costs........

Please post the Buy Call Coverage for sharing.

Thanks

Genting Hong Kong (BUY/US$0.17/Target: US$0.28)

Initiate coverage with a BUY call and US$0.28 target price.

Alliance Global Group, Inc. (AGI), the holding company of tycoon Andrew Tan, posted a 12 percent gain in consolidated net income to P2.22 billion in the first quarter of 2010.

In a disclosure to the Philippine Stock Exchange Friday, AGI said it’ net income attributable to shareholders rose 20 percent to P1.65 billion from P1.37 billion a year ago.

Consolidated revenues during the three-month period reached P10.50 billion, up 19 percent from P8.86 billion in the same period last year.

AGI’s property arm, Megaworld Corporation, accounted for 46 percent of revenues during the period, compared to 43 percent from the consumer business, primarily through Emperador Distillers and Golden Arches Development Corporation, master franchise holder of McDonald’s in the Philippines.

Earnings before interest, taxes, depreciation and amortization in the first quarter of 2010 amounted to P3.30 billion, up from P2.80 billion a year ago.

“Our first quarter results show AGI’s continued strength in the industries it operates in. We believe that we are reaping the benefits of the business decisions we made in the last couple of years,” said AGI President Kingson Sian.

Sian was referring to expansion efforts under AGI’s real estate and consumer businesses, as well as its recent foray into the tourism industry under a joint venture with Genting Hong Kong Limited (formerly named Star Cruises Limited of Hong Kong), through AGI subsidiary Travellers International Hotel Group, Inc.

“While this is the first full quarter that we are reporting our share in the net profits in Resorts World Manila and, given that the facility is not yet fully complete, we are quite pleased by the early indication of the potential of the business,” said Sian.

He added that “we remain committed to building a truly world-class facility, one that can be considered a hallmark in Philippine tourism.”

Alliance Global earns P2.2 billion in Q1, up 12%

USD 16.0  was  HiSToRY  in July 2009

when  market  was  anticipating

2009  results  to be wOrse  than  2008.

FA  2010  is  TransfOrmed  nOw

dOn't  knOw  abOut  TA

bUt  i  WiLL  be  GLAD  if  I

can  buy  at  USD16  frOm  nOw  On.

wOrst  is  Over  fOr  ASiA  ExcEpt  iF

there  is  an  ASiA  sub-PRiME  in  2010

Hulumas      ( Date: 01-May-2010 15:15) Posted: Will it be back to Usd. 0.16? pharoah88      ( Date: 01-May-2010 14:18) Posted:     RECOVERY  ALREADY  IN  ROAR

CRUISE LINES

NCL: Smooth sailing ahead

BY MARTHA BRANNIGAN

mbrannigan@MiamiHerald.com