Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 7): Shares of Genting Bhd rose 19 sen or 2.14% today on stronger-than-expected earnings released by its Singapore gaming arm and following news that its chief executive officer Tan Sri Lim Kok Thay and his son had emerged as major shareholders in the company. 

Shares of Genting opened 4 sen higher today, before climbing further to its intra-day high of RM9.06, up 19 sen with 1.57 million shares traded.

Yesterday, Genting Singapore PLC announced net profit in its third quarter ended Sept 30, 2017 (3QFY17) had increased 35% to S$143.8 million, from S$106.9 million in 3QFY16, thanks to higher visitors and gaming volume. Revenue saw an increase of 8% to S$629.9 million, compared with S$581.5 million a year ago.

For its 9-month ended Sept 30 (9MFY17), Genting Singapore saw revenue increase 8.5% to S$1.81 billion. Net profit rose by 176.2% to S$468.2 million, from S$107.2 million in 9MFY16.

HLIB Research said in a note today that “there is growing optimism on the overall market condition and management is now more willing to extend the credit policy and grow its premium business”, in light of less stringent credit policy and refurbishment of gaming area.

The research house maintained its ‘Hold’ call on Genting Singapore, as it believes current valuation is not attractive, “despite the growing optimism and improving operating environment”. Target price was raised to S$1.27, from S$1.21 previously.

“Besides, we believe the growth outlook is challenging due to stiff competition, and the delay in the tabling of implementation bill in Japan may keep the interest at bay,” it added. 

The management has guided that the Japan casino implementation bill will only be tabled in FY18, indicating bidding invitation may come by as late as early FY19.

On a related matter, The Edge Financial Daily today reported Genting CEO Lim Kok Thay and son Lim Keong Hui have emerged as 42.62% shareholders in Genting Bhd, the bulk of which is held indirectly via Kien Huat Realty Sdn Bhd.

Via their stake in Genting, Kok Thay and Keong Hui also surfaced as controlling shareholders of other entities, including Genting Singapore with a 52.9% stake, Genting Plantations Bhd with a 50.67% stake, and another 49.37% in Genting Malaysia Bhd.

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