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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