Wednesday, February 29, 2012

Genting Berhad (BUY) - Better-Than-Expected FY11 Results


Genting Berhad (BUY)
Better-Than-Expected FY11 Results
Repored FY11 net progfit of RM2,867.5m came in above expectation, accounting for 108% of ours and also streets’ estimates.
Declared final dividend of 4.5 sen, summing up to total GDPS of 8.0 sen (0.8% GDY)
RWG showed revenue growth from its gaming segment with higher volume in business, partially offset by the lower hold percentage in the premium players segment. RWS’s revenue growth is mainly from its non-gaming segment (USS). RWS’s gaming revenue was up mid-single digit. Although it gained market share in 4Q, it is still below the 50% mark.
GenUK continued to show improvement, especially in its London casinos. RWNY’s net win has started to normalize within the range of US$310-370/VLT/day.
Its power division benefited again from higher energy charge and tariff rates.
Plantation and property division (GenP) showed revenue growth in FY11 from the higher palm product prices, higher FFB production and greater demand from its industrial and commercial properties.
O&G division did not record any revenue in FY11 following the disposal of Genting O&G (China).
FY12-13 PATAMI forecast raised by 1% to reflect better performance by GenP and GenUK coming forward.
TP raised by 2.7% to RM11.50 based on SOP valuation post-earnings revision. Upgrade to BUY.

Source: HLIB Research 29 Feb 2012

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