Highlights
KLSE: GENM (4715)       GENTING MALAYSIA BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
3.07   -0.01 (0.32%)  3.02 - 3.12  12,373,800
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Overview

Market Cap: 18,230 Million
NOSH: 5,938 Million
Avg Volume (4 weeks):40,620,777
4 Weeks Range:3.02 - 4.00
4 Weeks Price Volatility (%):
5.10%
52 Weeks Range:2.76 - 5.24
52 Weeks Price Volatility (%):
12.50%
Average Price Target: 3.59
Price Target Upside/Downside: +0.52

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2019 [#1]  |  23-May-2019
Next QR | Est. Ann. Date: 30-Jun-2019  |  29-Aug-2019
T4Q P/E | EY: -166.43  |  -0.60%
T4Q DY | Payout %: 5.90%  |  - %
T4Q NAPS | P/NAPS: 3.0115  |  1.02
T4Q NP Margin | ROE: -1.71%  |  -0.61%

Headlines

Date Subject
19-Aug-2019 11 things I learned from the 2019 Genting Malaysia AGM - Shak Chee Hoi
19-Aug-2019 收购+重组债务+私有化·云顶大马购帝国代价6.9亿
19-Aug-2019 云顶大马为何买帝国?/迪瓦尼山
16-Aug-2019 Genting Malaysia Berhad - Responding to Regulator’s Query
16-Aug-2019 Mplus Market Pulse - 16 Aug 2019
16-Aug-2019 Genting Malaysia - A Costly Acquisition
16-Aug-2019 购帝国度假村引诟病·云顶大马:最佳选项
16-Aug-2019 GENM: Empire Resorts a "Worthwhile Investment"
14-Aug-2019 Genting Malaysia Part 3: Why the market is dead wrong on the acquisition (boostmy)
14-Aug-2019 帝国度假村拟申请破产·云顶大马·云顶应声下跌
13-Aug-2019 Evening Market Summary - 13 Aug 2019
13-Aug-2019 云顶大马掀起惊涛骇浪/前线把关
09-Aug-2019 Genting Malaysia - Limited Downside Risk Amid Undemanding Valuations
09-Aug-2019 GENM: Part 2: Empire Resorts Deal Not a Bailout (Boostmy)
08-Aug-2019 [12Invest] 壹贰讲股 -不做标题党,摆明跟你讲我要谈GENTING MALAYSIA!
08-Aug-2019 [转贴] 云顶大马(GENM)收购案之我见 ~ 第一天
08-Aug-2019 购美赌场惊吓‧惹金援大股东猜疑‧云顶大马盈利恐减20%
08-Aug-2019 GENM : A Game of Poker?
07-Aug-2019 GENM: NEW YORK ACQUISITION SHALL CANCEL
07-Aug-2019 Evening Market Summary - 7 Aug 2019

Business Background

Genting Malaysia is a resorts and casino company and is a subsidiary of the holdings company Genting. The company has two primary business segments: Leisure & Hospitality and Properties. The Leisure & Hospitality segment operates numerous resorts, many of which include casinos, theme parks, concerts, restaurants, and retail shopping locations. The flagship resort operates five hotels, an amusement park, and entertainment venues. The Properties segment controls and leases real estate. The company generates the vast majority of its revenue in Malaysia.
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  16 people like this.
 
EasyInKlse Last time who say LKT say u want u buy........ You dun want dun buy....... Hhahaha
19/08/2019 9:40 AM
icecool there are over 100 celebrity to do sex scandal with in this country but lkt decided to do bottom line scandal. aiyo lkt need to hire a scandal consultant next time. hahaha!!!
19/08/2019 9:42 AM
Bullbursa LKT is not the kind of person we minority want to deal with..he nvr care and respect us..will ban genting. Everyone should
19/08/2019 9:44 AM
Bullbursa Reputation gone
19/08/2019 9:44 AM
bc8660 For me this already very good price and going to buy in slowly.
19/08/2019 9:45 AM
pussycats Buy now, very cheap.
19/08/2019 9:50 AM
7300 abis cerita,gulung tikar
19/08/2019 9:50 AM
Bullbursa Will be cheaper
19/08/2019 9:53 AM
William Ng 3.00 i buy
19/08/2019 9:55 AM
129055444514385 From rm4 to current level within a short period... too extreme
19/08/2019 10:04 AM
129055444514385 Back to RM3.50 soon:)
19/08/2019 10:04 AM
129055444514385 Wait for results Q2
19/08/2019 10:05 AM
129055444514385 Announce interim div is coming

Announcement Date Subject Amount
29/04/2019 Final Dividend (Amended Announcement) 0.05
01/04/2019 Final Dividend 0.05
27/02/2019 Special Dividend 0.08
29/08/2018 Interim Dividend 0.06
19/08/2019 10:06 AM
129055444514385 Yearly, announce interim div this month
19/08/2019 10:06 AM
129055444514385 buy some while others are fearful... increase in gambling tax fell RM1, fox theme park felll RM1, empire fell RM1, jhlow's yacht fell also............... overdone due to fear... time to buy............. fox themepark resolved, gambling tax did not stop genM to make profit more profit due to increased in revenue, etc.
19/08/2019 10:11 AM
129055444514385 empire deal could be a blessing in disguise... the losses during startup stage had been absorbed by KH Realty... :) even the purchase of empire is a total loss, it would not make sense to cause the share price to fall by RM1 (25%) from RM4 :)
19/08/2019 10:12 AM
129055444514385 shares issued is about 6billion...... fell by RM1 per share from RM4.... the empire deal = RM6bil?? ridiculous , right? :)
19/08/2019 10:14 AM
129055444514385 GENM: Part 2: Empire Resorts Deal Not a Bailout (Boostmy)
Author: boostmy | Publish date: Fri, 9 Aug 2019, 8:06 AM

Link to part 1 explaining why losses for Empire Resorts should narrow or turn profitable in the future:

https://klse.i3investor.com/blogs/boostmy/218521.jsp



Part 2: Purchase of Empire Resorts Inc. Doesn’t Look Like Bailout

1. Kien Huat (the vendor) subscribed for a rights issue at USD14.40 per share in 2016. The exercise led to an injection of USD287m in capital to fund the equity portion to construct Resorts World Catskill (the debt portion was USD545m). Kien Huat subscribed for shares in Empire Resorts Inc at a 48% premium over GENM’s acquisition price of USD9.74. If Kien Huat really wanted to screw investors over, they would have chosen to divest their direct stake to GENM at a price closer to USD14.40 -- Empire Resorts traded at USD14.00 per share as recent as May 2019. The link to the rights issue prospectus is provided below.

2. Kien Huat pumped USD392m over the years to build up its stake to 84%. This values the company at an average valuation of USD466.6m (USD392/0.84), a 39% premium to its current valuation of USD335m based on USD9.74 per share. USD392m was derived from 3 transactions: an initial USD55m capital injection in 2009, a rights issue of RM50m to obtain a gaming license from the state of New York in 2015 and the rights issue in Point 1 of USD287m to fund Resorts World Catskills. By disposing 46% of its 84% stake for USD128.6m, Kien Huat will be making a loss on disposal of USD51.9m (USD180.5m – USD128.6m = USD51.9m) on its equity investments into Empire Resorts Inc, not to mention opportunity costs. Links provided below.

3. Kien Huat will still maintain an effective stake of 75.2% in Empire Resorts Inc. From its initial 84% direct stake, Kien Huat will still maintain a 75.2% effective ownership in Empire Resorts Inc. This is through its 49.5% deemed interest in GENM which will own 49% of Empire Resorts Inc, hence an indirect stake of 24.2%. Adding this up with Kien Huat’s 51% stake will result in an effective stake of 75.2%. This is important as any future losses (or earnings if you are the optimistic type) will still be reflected by Kien Huat’s consolidated accounts, albeit being 9% lower than its initial 84% direct stake. This means that Kien Huat is not entirely shifting its losses (or earnings) to GENM.

4. Kien Huat’s cash proceeds of USD128.5m from GENM unlikely for personal gain. Most of this, if not all, will likely be used to recapitalize or reinvested in Empire Resorts Inc. Bear in mind that Kien Huat maintains a direct 51% stake in Empire Resorts Inc through the joint venture arrangement. According to the Bursa announcement, Kien Huat will contribute its share of any future capital requirements. It is almost a certainty that Empire Resorts Inc will need more capital. However, I do not expect the requirement to be that high, as the construction of Resorts World Catskills has already been completed. Most of the fresh capital would go towards funding working capital, paring debt or for future expansion in Orange County Opportunities. Safe to say, Kien Huat will not be cashing out and walking away into the sunset anytime soon.

5. The price drop in GENM probably isn’t justified. According to the cover story by The Edge Financial Daily, GENM lost RM2.6b in market cap after the acquisition was announced. In my calculation, assuming the worst case scenario where GENM fully writes-down its eventual 49% stake, the hit would be RM694.8m. If I assume the hit to be at full enterprise value (EV), ie adding in its 49% share of net debt amounting RM1.1b, the hit would be RM1.8b to GENM, still not RM2.6b. This assumes that the assets acquired, ie 1,700 acres of land, an integrated casino, hotels, a race track, etc are totally worthless -- zero value – not a single dime is recoverable from asset sales. According to its Bursa announcement, the acquisition would make up a maximum of 4.01% of GENM’s net assets, but the share price fell more than 10%.

6. Conclusion. Kien Huat still owns an effective stake of 75% -- they suffer just as much or more compared to minority shareholders on Empire Resort’s performance. The conclusion that the acquisition is value eroding to GENM is premature, as no projections were made on its 2020 numbers (losses probably peaked in 2018 and the first half of 2019). GGR is growing at an encouraging pace in the second quarter of 2019, and new attractions and gaming facilities are being added -- creating new growth avenues. A better gauge of the impact on GENM’s earnings would lie in Empire Resorts Inc’s third or fourth quarters of 2019. The rationale of consolidating the New York casino businesses makes a lot of business sense, not only in creating synergies but allow management to be more focused, instead of managing multiple listed companies. Kient Huat does not appear to be benefiting from the stake sale at the expense of GENM minorities. T
19/08/2019 10:17 AM
129055444514385 the opening of the outdoor theme park would boost revenue and profit... many multiplier effects
19/08/2019 10:20 AM
Gtrade FEAR of Zakir Naik led relgious expansion of power base dampen mkt especially sin business like gambling
19/08/2019 10:27 AM
129055444514385 11 things I learned from the 2019 Genting Malaysia AGM - Shak Chee Hoi
Author: Tan KW | Publish date: Mon, 19 Aug 2019, 9:06 AM

By Shak Chee Hoi on August 19, 2019



Listed in 1989, Genting Malaysia Berhad (GENM) is a household name in Malaysia. It owns Resorts World Genting, a hill resort located in Genting Highlands which is about an hour’s drive away from Kuala Lumpur. Resorts World Genting offers visitors a wide variety of dining, retail, and entertainment options, and a welcome respite from Malaysia’s tropical heat. But most importantly, it operates a casino. I recently visited the resort on a weekday and was surprised to find how crowded it was; it was flooded with tourists, both local and foreign.

2018 was a tough year for GENM as it was hit with RM1.8 billion in impairment loss on its promissory notes, higher annual casino license fees and duties, and a litigation battle with Walt Disney and Twenty-First Century Fox.

Here are 11 things I learned from the 2019 Genting Malaysia AGM:

1. Revenue grew 6.4% year-on-year to RM9.9 billion in 2018. The increase is driven mainly by operations in Malaysia where there is an improved hold percentage — the percentage of money held by a table game — in the mid to premium players segment as well as higher business volume from the mass market. The Skytropolis Funland indoor theme park as well as more dining and retail options were also rolled out to the public in 2018. The leisure and hospitality segment in Malaysia contributed to approximately two-thirds of GENM’s revenue in 2018.


Source: Genting Malaysia 2018 annual report
2. GENM posted a net loss (including one-off items) of RM19.5 million in 2018 compared to earnings of RM1.2 billion in the previous year. The decline in net profit is mainly due to the RM1.8 billion impairment loss on promissory notes issued by the Mashpee Wampanoag Tribe. The promissory notes were issued to finance the pre-development of an integrated gaming resort in Taunton, Massachusetts, USA. In September 2018, the U.S. Federal Government concluded the tribe did not satisfy the Indian Reorganization Act to pursue with the integrated development. The impairment loss comprises RM1.1 billion in original construction costs and RM0.7 billion in unearned interest and fees. The project is currently pending further court developments and actions by relevant government authorities to reaffirm the land in trust for the benefit of the tribe. GENM has no plans to further invest in the project at this point.

3. The promissory notes carry fixed interest rates of 12% and 18% annually, which was deemed quite high and risky by one shareholder. The tribe did not manage to secure a loan from commercial banks and eventually turned to private financial backers like GENM. In Chairman Tan Sri Lim Kok Thay’s opinion, the interest rate did not fully reflect the risk of the project and thought GENM could have asked for higher interest rates in order to justify the risk.

4. Resorts World Genting has 10,500 rooms spread across seven hotels. Two-thirds of room nights were taken up by Malaysians with the rest going to international guests mainly from Singapore, Indonesia, Thailand, China, and India. Occupancy rate was 97% in 2018 as compared to 95% in 2017. Average room rate was RM106 in 2018, a 15.2% y-o-y increase from RM92 the year before. The resort drew 25.9 million visitors in total in 2018 — an increase from 23.6 million in 2017 — out of which 73% of visitors were day-trippers.

5. Revenue contribution from the leisure and hospitality segment in the UK and Egypt fell by 6.0% y-o-y to RM1.8 billion in 2018 as the premium gaming segment recorded lower business volume. There were 4.1 million visits to the casino, a 6% decline from 2017. GENM may consider closing its underperforming casinos in the UK and Egypt. It is also worth noting that Resorts World New York City owns a 41% market share (by gaming revenue) in the Northeast U.S. region.

6. Effective 1 January 2019, the Ministry of Finance revised the annual casino licence fee from RM120 million to RM150 million per year and casino duties from 25% to 35%. The casino duty is especially harsh as it is taxed on GENM’s gross revenue. The changes may impact up to 30% of net profit in 2019.

7. Tan Sri Lim voluntarily reduced his salary by 20% in view of the challenging business environment. His initiative earned a round of applause from shareholders but some commented that he could consider reducing his salary by 50% instead! In the Corporate Governance Monitor 2019 published by Securities Commission Malaysia, Tan Sri Lim is both the highest and second-highest paid CEO in 2018, earning RM168.0 million and RM80.6 million from Genting Berhad and GENM respectively. To further mitigate the impact of the hike in casino duties, other cost cutting measures may be implemented including reducing promotional incentives and marketing expenses as well as reducing the number of employees to lower payroll and related
19/08/2019 10:33 AM
Bullbursa Pas-umno big threat for genm...next week another bombshell..qtr result may be disappointing,
19/08/2019 10:33 AM
129055444514385 The case is still pending... any reversal in future?

GENM posted a net loss (including one-off items) of RM19.5 million in 2018 compared to earnings of RM1.2 billion in the previous year. The decline in net profit is mainly due to the RM1.8 billion impairment loss on promissory notes issued by the Mashpee Wampanoag Tribe. The promissory notes were issued to finance the pre-development of an integrated gaming resort in Taunton, Massachusetts, USA. In September 2018, the U.S. Federal Government concluded the tribe did not satisfy the Indian Reorganization Act to pursue with the integrated development. The impairment loss comprises RM1.1 billion in original construction costs and RM0.7 billion in unearned interest and fees. The project is currently pending further court developments and actions by relevant government authorities to reaffirm the land in trust for the benefit of the tribe. GENM has no plans to further invest in the project at this point.

The promissory notes carry fixed interest rates of 12% and 18% annually, which was deemed quite high and risky by one shareholder. The tribe did not manage to secure a loan from commercial banks and eventually turned to private financial backers like GENM. In Chairman Tan Sri Lim Kok Thay’s opinion, the interest rate did not fully reflect the risk of the project and thought GENM could have asked for higher interest rates in order to justify the risk.
19/08/2019 10:35 AM
129055444514385 8. GENM’s outdoor theme park has been closed since 2013 and was originally planned to reopen as a Fox World theme park in 2016. However, the opening of the new theme park was delayed several times and, in 2018 GENM sued Disney and Fox for more than US$1 billion for abandoning the contract to build the theme park. According to GENM, Disney pulled the plug as GENM’s gaming image did not fit Disney’s family-friendly branding. In July 2019, the dispute was resolved and Genting will be allowed to use certain Fox intellectual properties for the new theme park.

9. The same shareholder asked about GENM’s plan with the superyacht Equanimity, now renamed Tranquility. In April 2019,GENM purchased the superyacht at US$126 million — which is about half its original building cost of US$250 million –and another US$3 million was incurred to refurbish and upgrade the superyacht. The yacht is on its way to Europe to be chartered for the remaining three months of the summer high season (which usually lasts five months). A yacht charter company estimated the Tranquility could yield US$1.5 million per week in charter fees. The yacht can also be catered for Asian high rollers like those in Macau. GENM would consider a sale if an opportunity arises.

10. The same shareholder asked if the management planned to dispose Resorts World Kijal in Terengganu, Malaysia. The underperforming resort had an occupancy rate of 34% in 2018, a further drop from 41% the previous year. Tan Sri Lim explained that resort had been profitable before the State of Terengganu banned public drinking including at hotel bars. As a result, the move deterred foreign tourists which led to the low occupancy rate. The land will be kept for potential residential development in the future instead of being sold at a distressed price. GENM also has no intention to expand into Laos in response to a question by a shareholder. Tan Sri Lim also clarified that Genting Singapore is the party who will bid for licences to set up integrated resorts in Japan.

11. The Malaysian Shareholders Watchdog Group commented that it was not good practice to have the same person, Tan Sri Lim, to be appointed as chairman and CEO of GENM. However, GENM is of the view that Tan Sri Lim has sufficient experience to carry out the two roles. He also has 49.5% stake in GENM, which makes him aligned with shareholders’ interests. GENM also has seven independent directors which represents more than half the board, and believes that the board is independent and objective enough to discuss matters in the interest of GENM.
19/08/2019 10:37 AM
129055444514385 pas macam taiban caused genm to lose money and the govt collected less taxes from GENM's resorts in trengganu... hancur ekonomi malaysia jika taliban likes pas berkuasa

The same shareholder asked if the management planned to dispose Resorts World Kijal in Terengganu, Malaysia. The underperforming resort had an occupancy rate of 34% in 2018, a further drop from 41% the previous year. Tan Sri Lim explained that resort had been profitable before the State of Terengganu banned public drinking including at hotel bars. As a result, the move deterred foreign tourists which led to the low occupancy rate. The land will be kept for potential residential development in the future instead of being sold at a distressed price.
19/08/2019 10:38 AM
VivaVivo2017 GenM shd declare a special dividend to provide LKT the funds to rescue Empire Resorts. And pledge his shares to bank to secure more loans. Anyway, GenM has bottomed out. There will be a huge upside for GenM if (a) Empire Resort deal is called off (b) write back of impairment (c) opening of Fox theme park. GenM is still the best casino in South East Asia bcoz of its weather, theme park & scenery compared with Loas and Cambodia
19/08/2019 10:40 AM
129055444514385 no more direct biz deals :)

History
Date Price Change Dir-Volume Day Volume Dir-Value Day Value Avg Price % of Total Share Remarks
20/06/2019 00:00:00 3.2000 -0.1400 10,000 10,000 32,000 32,000 3.2000 0.0002 -
13/06/2019 00:00:00 3.2200 - 2.456m 2.456m 7.908m 7.908m 3.2200 0.0414 -
10/06/2019 00:00:00 3.1900 0.0400 32,000 32,000 102,080 102,080 3.1900 0.0005 -
08/05/2019 00:00:00 3.1500 -0.0100 142,000 142,000 447,300 447,300 3.1500 0.0024 -
26/04/2019 00:00:00 3.1900 -0.0300 31,500 99,200 100,485 316,448 3.1900 0.0005 -
26/04/2019 00:00:00 3.1900 -0.0300 31,400 99,200 100,166 316,448 3.1900 0.0005 -
26/04/2019 00:00:00 3.1900 -0.0300 36,300 99,200 115,797 316,448 3.1900 0.0006 -
08/03/2019 00:00:00 3.4300 - 30,018 30,018 102,962 102,962 3.4300 0.0005 -
04/03/2019 00:00:00 3.4400 - 56,500 56,500 194,360 194,360 3.4400 0.0010 -
28/02/2019 00:00:00 3.5200 0.0500 456,200 456,200 1.606m 1.606m 3.5200 0.0077 -
21/02/2019 00:00:00 3.4900 - 806,500 806,500 2.815m 2.815m 3.4900 0.0136 -
19/08/2019 10:41 AM
129055444514385 casino duties to be adjusted to 30% for 2020? :)

Effective 1 January 2019, the Ministry of Finance revised the annual casino licence fee from RM120 million to RM150 million per year and casino duties from 25% to 35%. The casino duty is especially harsh as it is taxed on GENM’s gross revenue. The changes may impact up to 30% of net profit in 2019.
19/08/2019 10:43 AM
129055444514385 GENM would consider a sale if an opportunity arises. good..... as jhlow claimed that genm bought it too cheap, very undervalued :)


The same shareholder asked about GENM’s plan with the superyacht Equanimity, now renamed Tranquility. In April 2019,GENM purchased the superyacht at US$126 million — which is about half its original building cost of US$250 million –and another US$3 million was incurred to refurbish and upgrade the superyacht. The yacht is on its way to Europe to be chartered for the remaining three months of the summer high season (which usually lasts five months). A yacht charter company estimated the Tranquility could yield US$1.5 million per week in charter fees. The yacht can also be catered for Asian high rollers like those in Macau.
19/08/2019 10:44 AM
129055444514385 possible for the casino duties to be adjusted to 30%
19/08/2019 10:45 AM
rookiemy Fascinating to read all these long write up. People will do anything trying to sell their stories. Wonder how many would buy the stories. Many are trapped in GENM. The way I see it, any meaningful rebounds from here provide chances to escape in near term.
19/08/2019 11:01 AM
smurfbee well.... need to infer the moves by Chairman LKT properly.... he has significant share ownership in both GENM and RWC.... you think he just want to rip off minor shareholders of genm just like that without any reason. GENM only needs to fork out $500M+ for the stake in RWC.... prepare for more good news ahead...
19/08/2019 11:01 AM
7300 just delit it before more big potatoes dummies humpies....GE fake acc next enron or WorldCom?
19/08/2019 11:04 AM
129055444514385 good Q2 results plus interim dividend will boost the share price this month,
19/08/2019 11:09 AM
Bullbursa Dun giv false hope to those who trapped
19/08/2019 11:11 AM
Jeffreyteck Exit or average down is always difficult for minority to make a decision amid insufficient info in hand. By now major SH and insiders or few IBs may have info on Q2 results and plan their trading pattern ahead. Good luck.
19/08/2019 11:14 AM
129055444514385 Main graph pun ok day traders

KUALA LUMPUR (Aug 19): AllianceDBS Research said Genting Malaysia Bhd (GenM) had on 16 August 2019 traded higher to RM3.13 before closing unchanged at RM3.08 (up 1 sen or 0.32%).
In its evening edition Aug 16, the research house said GenM continued to trade below the 20-day (blue) and 50-day (red) moving average lines.
It said following the up close on Aug 16, the stock is likely to move higher with immediate hurdle at RM3.19.
“A crossover of RM3.19 should see further price rise to the next overhead resistance zone, RM3.26 – RM3.35.
“The support is pegged at RM3.04. A fall below RM3.04 would put pressure on the stock down to the subsequent support zone, RM2.90 – RM2.95,” it said.
AllianceDBS Research said stock volume traded on Aug 16 was 22.8 million shares compared to the 3-month average volume of 16.6 million shares.
19/08/2019 11:14 AM
Desmond_of_KLSE I guarantee bad results ahead for at least 2 years. Boycott genting for at least 2 years!
19/08/2019 11:15 AM
Bullbursa If really want to buy, just wait below.. 3.
19/08/2019 11:27 AM
Good123 Responding to a query by Bursa Malaysia on the related party transaction announced recently in relation to the proposed acquisition of Empire Resorts (Empire), Genting Malaysia Bhd (GenM) elaborated the rationale of its plan to acquire a company that is saddled with debt and on the brink of filing for bankruptcy. GenM believes that its proposal to inject additional liquidity (with Kien Huat Realty Sdn Bhd via a proposed joint venture to privatise Empire) and its extensive experience in operating casino businesses should enable it to turn around Empire, hence creating value for GenM shareholders. Given GenM’s track record as a successful casino operator, we believe that it has the capability to place Empire on a stronger footing but this could take time. In the near term, we reckon Empire’s loss-making operations would be a drag on GenM’s earnings. Given the lack of earnings visibility and uncertainty over the degree of its success in eventually turning Empire around, we impute a 10% discount to our sum-of-the-part valuation.
19/08/2019 11:29 AM
VivaVivo2017 RM 30 million extra tax to help Malaysia is a small price for GenM
19/08/2019 11:29 AM
Good123 In the announcement of its second-quarter financials to the US Securities and Exchange Commission last week, debt-laden Empire highlighted to shareholders the option of filing for bankruptcy, stating that the option would allow it to easier restructure its borrowings. GenM believes that its proposal to establish a joint venture with Kien Huat Realty (Empire’s controlling shareholder as well as the parent company of GenM) and privatisation of Empire is the best alternative available that would also benefit GenM shareholders. With its extensive experience in operating successful casino businesses, GenM may turn around Empire and thereby increase shareholder value.

Empire operates Resorts World Catskills (RWC), a casino resort in Sullivan County, New York. It is one of the newest gaming assets in northeast US with over US$900 million invested so far. It is one of the closest gaming facilities to New York City offering live table games. It is nestled in a scenic range development that includes the third party US$200 million Kartrite Resort, a modern indoor waterpark development with 324 brand-new all suite luxury rooms. GenM could take advantage of synergies between its existing operations in New York and RWC, providing both with economies of scale to reduce cost. RWC also has the opportunity to develop a video lottery facility and benefit from the emerging sports wagering market in New York
19/08/2019 11:29 AM
rookiemy Today intraday low of 3.02 is an indication of more force selling to come today. As what Alliance DBS stated in their report, i quote, “... A fall below RM3.04 would put pressure on the stock down to ...., RM2.90 - RM2.95”. Just beware.
19/08/2019 11:31 AM
Good123 Interesting

Genting Malaysia Bhd has come out to defend its purchase of a 35% stake (fully diluted) in Empire Resorts Inc, a financially troubled US casino, from Kien Huat Realty III Ltd, which is left with an estimated 51% shareholding.

GenM said the related-party transaction (RPT), which cost US$128 million (RM538 million), was a “worthwhile investment” and gave a long list of reasons in arguing its case.

The company was queried by Bursa Malaysia after The Edge Financial Daily reported on Aug 13 that Empire Resorts had disclosed to US regulators and its shareholders on Aug 9 that it was running out of cash and may have to file for voluntary Chapter 11 bankruptcy. Empire Resorts added that it had been informed by Kien Huat on July 25 that it would not commit further funds beyond what it was obliged to.

The disclosure came three days after GenM announced the stake purchase on Aug 6.

We are asking whether the seven independent directors of GenM who approved the purchase were informed of the casino’s financial woes. If yes, why was Empire’s problems not disclosed in GenM’s announcement to Bursa?

Empire Resorts’ financial woes only came to light because The Edge carried out checks on the company after GenM announced the purchase. Is it not incumbent on GenM to fully disclose the health of the company it is investing a huge sum in, especially an RPT?

The casino has said it is saddled with over US$400 million (RM1.6 billion) in debt. As such, GenM will likely have to provide financial support, whether it is through a cash injection, shareholder loan or guarantee, as Kien Huat has said that it will not.

The cost of investing in Empire Resorts will thus be much more than the purchase price.

GenM avoided having to get approval from minority shareholders at an EGM for the purchase because the US$128 million price tag is just below the threshold of 5% of its total assets.

But if it has to provide financial support, the amount it will have to spend on Empire Resorts will surely breach the 5% threshold.

That being the case, in the spirit of the law if not the letter, it is only right that GenM gets approval from minority shareholders for this controversial RPT. Will the independent directors, whose duty is to protect the interests of minorities, call for an EGM?
19/08/2019 11:32 AM
Good123 Back to this range, reached 3.12 this morning... fearful traders dah cabut

“A crossover of RM3.19 should see further price rise to the next overhead resistance zone, RM3.26 – RM3.35.
19/08/2019 11:33 AM
Good123 Technical analysis play suggested this morning
19/08/2019 11:34 AM
Good123 Above 3.1 by day end... investors back to rationality
19/08/2019 11:35 AM
Good123 The reason I like big cap. Bursa is more proactive

I. PROPOSED ACQUISITION BY GENM OF SHARES IN EMPIRE RESORTS, INC., FROM KIEN HUAT REALTY III LIMITED (KH) II. PROPOSED JOINT VENTURE BETWEEN GENM AND KH TO PRIVATISE EMPIRE RESORTS, INC. (EMPIRE)
GENTING MALAYSIA BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-14082019-00001
Subject I. PROPOSED ACQUISITION BY GENM OF SHARES IN EMPIRE RESORTS, INC., FROM KIEN HUAT REALTY III LIMITED (KH) II. PROPOSED JOINT VENTURE BETWEEN GENM AND KH TO PRIVATISE EMPIRE RESORTS, INC. (EMPIRE)
Description GENTING MALAYSIA BERHAD ("GENM" OR "COMPANY")
I. Proposed Acquisition by GENM of shares in Empire Resorts, Inc., from Kien Huat Realty III Limited ("KH")
II. Proposed Joint Venture between GENM and KH to privatise Empire Resorts, Inc. ("EMPIRE")
Query Letter Contents
We refer to your Company's announcement dated 6 August 2019, in respect of the aforesaid matter. In this connection, kindly furnish Bursa Securities Malaysia Berhad with the following additional information for public release:-



1. Breakdown of preference stock and common stock and the details of the dilution from 46% to 35%.



2. Further details of the Proposed JV (as prescribed under Part B of Appendix 10A of Chapter 10 of the Main Market Listing Requirements).



3. Basis and justification of the Purchase Consideration.



4. The financial information of EMPIRE including the net profit/loss and net assets based on the latest available financial statements.



Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.





Yours faithfully









IRWAN JOHARI

Assistant Vice President, Issuers

Listing

Regulation



IJ/AEV



cc:- Market Surveillance, Securities Commission (via fax)

We refer to our announcement dated 6 August 2019 and the letter from Bursa Malaysia Securities Berhad dated 14 August 2019 in relation to the above. Please refer to the attached GENM's responses to the same.



Please refer attachment below.

Attachments
Announcement - IQL-14082019-00001.pdf
192.5 kB

Announcement Info
Company Name GENTING MALAYSIA BERHAD
Stock Name GENM
Date Announced 15 Aug 2019
Category General Announcement for PLC
Reference Number GA1-15082019-00075
19/08/2019 11:37 AM
Good123 I think , empire will end up to be privatised by kh realty alone
19/08/2019 11:38 AM
Good123 Be patient
19/08/2019 11:39 AM


 

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