Genting Malaysia
(BUY)
Results In-Line
- Excluding construction revenue and profit for the US, GenM’s FY11 net profit came in-line accounting to 104.4% of our full year forecast.
- Declared final dividend of 4.8 sen, summing up to GDPS of 8.6 sen vs. our expectation of 8 sen. (2.3% GDY).
- Membership programmes were differentiated during the quarter which led to the fall in casino patronage trend. Hotel revenue was up 9% on the back of increased of no. of rooms sold and higher average room rate.
- GenUK continued to show improvement in the quarter, recording higher revenue and EBITDA attributable to higher volume in business and hold percentage in London casinos.
- Net win in RWNY started to normalize within the range of US$310-370/VLT/day. In addition, RWNY has increased its marketing efforts in RWNY to attract more customers such as bus programmes.
- We raise our revenue growth for GenUK from a conservative 1% to 3% to reflect better-than-expected performance during the year.
- Target price is raised 2% to RM4.17 from RM4.07 previously. Upgrade to BUY.
Source: HLIB Research 29 Feb 2012
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