SINGAPORE, Oct 30 (Reuters) - The full opening of one of Singapore's casinos may be delayed due to construction issues and a shortage of labour, a local newspaper reported on Thursday.
The Marina Bay Sands integrated resort, awarded to Las Vegas Sands (LVS.N: Quote, Profile, Research, Stock Buzz) in 2006, is several months behind schedule, the pro-government daily Straits Times said, citing sources. The casino was due to open at the end of 2009.
The newspaper said the foundation work for the casino was delayed three to four months and quoted sources as saying it was "impossible" for all its facilities to be fully operational by the end of 2009.
Marina Bay Sands officials were not immediately available for comment.
Built on reclaimed land from the sea, the project is one of two multi-billion dollar casinos under construction since Singapore legalised casino gaming in 2005 to attract more tourists.
The second casino, Resorts World at Sentosa, is being built by Genting International (GNTG.SI: Quote, Profile, Research, Stock Buzz) and is scheduled for completion in 2010.
Resorts World may also see a delay in the opening of some of its facilities, although a casino spokeswoman said it was "on track" for a "soft opening" in 2010, the paper said.
The two casinos have been hit by higher construction costs since building began, causing Genting International to revise its costs for Resorts World up 15 percent to S$6 billion last year.
(Reporting by Melanie Lee; Editing by Anshuman Daga)
Source
Thursday, October 30, 2008
Sunday, October 12, 2008
NEC casino plan safe from credit crunch
The credit crunch will not restrict the development of a £90 million casino and leisure complex at the NEC, the company behind the scheme has said.
The announcement comes as many other large scale projects in Birmingham and the surrounding area are put on hold by developers fearful of the current economic climate.
Genting Stanley, which recently moved its UK headquarters to Birmingham, is the largest casino operator in the country with more than 40 outlets.
The business is owned by Malaysia-based Genting International, a publicly traded subsidiary of Genting Berhad that operates resorts and casinos around the world. The company plans to operate the NEC casino and the venue is expected to be a major enticement in helping lure tourists to the exhibition centre site.
The scheme comprises a casino with 150 slot machines and a maximum jackpot of £4,000, a hotel and spa, bars and restaurants.
However, the plan is dependent on Solihull Borough Council granting the company a licence to operate the casino.
The authority’s licensing committee is drawing up the ground rules for the decision-making process and it is likely that a public consultation exercise will be necessary before the licence is approved.
Bids from prospective casino operators have to be submitted by April next year and if there is only one bidder then the licence is likely to be granted by June 2009.
If there are two or more bidders, a final decision could be delayed until this time next year.
Executive deputy chairman of Genting Stanley, Peter Brooks, said that the company would be working with both the NEC and the Solihull authority to make the process as easy as possible.
However, he said that no planning application would be submitted until the licence was granted.
“We will work hard with both the NEC and SMBC to develop the project,” he said. “We want to create something that everyone can be proud of.”
Asked if the poor economic climate had had an impact on the scheme, Mr Brooks said: “The timetable for the project remains but it is a moving target.
“We are expecting to get project financing but we are in the hands of the financial markets. However, we have a robust plan, a strong covenant and we can address the challenges,” he added.
The company said it was wary of the current climate and the impact it could have for attracting customers to the new site, however, he added that by the time the casino was ready to open – probably early 2012 if everything goes to plan – the economy would hopefully have turned.
“If things haven’t calmed down by then, then there will be lot of larger things to worry about,” said Mr Brooks.
The casino development itself is expected to be a unique design and Mr Brooks said there were no comparable buildings anywhere else in the group’s portfolio.
However, he said the development would probably be on a scale of the Star City complex.
The scheme, in conjunction with a £28 million makeover of the NEC Arena, will create more than 1,000 jobs and is crucial to a transformation strategy intended to turn the NEC from primarily a conference centre into a major leisure destination.
Although primarily known internationally for casinos, Genting Stanley’s parent group operates some of the most prestigious hotel complexes in the world.
One of the best known is as the Genting Highlands Resort in Malaysia, which offers a wide array of leisure and entertainment facilities supported by no less than 10,000 hotel rooms.
Genting International is also developing the £2.2 billion “Resorts World at Sentosa” integrated resort in Singapore which will be home to a world-class range of attractions including a Universal Studios theme park.
Source
The announcement comes as many other large scale projects in Birmingham and the surrounding area are put on hold by developers fearful of the current economic climate.
Genting Stanley, which recently moved its UK headquarters to Birmingham, is the largest casino operator in the country with more than 40 outlets.
The business is owned by Malaysia-based Genting International, a publicly traded subsidiary of Genting Berhad that operates resorts and casinos around the world. The company plans to operate the NEC casino and the venue is expected to be a major enticement in helping lure tourists to the exhibition centre site.
The scheme comprises a casino with 150 slot machines and a maximum jackpot of £4,000, a hotel and spa, bars and restaurants.
However, the plan is dependent on Solihull Borough Council granting the company a licence to operate the casino.
The authority’s licensing committee is drawing up the ground rules for the decision-making process and it is likely that a public consultation exercise will be necessary before the licence is approved.
Bids from prospective casino operators have to be submitted by April next year and if there is only one bidder then the licence is likely to be granted by June 2009.
If there are two or more bidders, a final decision could be delayed until this time next year.
Executive deputy chairman of Genting Stanley, Peter Brooks, said that the company would be working with both the NEC and the Solihull authority to make the process as easy as possible.
However, he said that no planning application would be submitted until the licence was granted.
“We will work hard with both the NEC and SMBC to develop the project,” he said. “We want to create something that everyone can be proud of.”
Asked if the poor economic climate had had an impact on the scheme, Mr Brooks said: “The timetable for the project remains but it is a moving target.
“We are expecting to get project financing but we are in the hands of the financial markets. However, we have a robust plan, a strong covenant and we can address the challenges,” he added.
The company said it was wary of the current climate and the impact it could have for attracting customers to the new site, however, he added that by the time the casino was ready to open – probably early 2012 if everything goes to plan – the economy would hopefully have turned.
“If things haven’t calmed down by then, then there will be lot of larger things to worry about,” said Mr Brooks.
The casino development itself is expected to be a unique design and Mr Brooks said there were no comparable buildings anywhere else in the group’s portfolio.
However, he said the development would probably be on a scale of the Star City complex.
The scheme, in conjunction with a £28 million makeover of the NEC Arena, will create more than 1,000 jobs and is crucial to a transformation strategy intended to turn the NEC from primarily a conference centre into a major leisure destination.
Although primarily known internationally for casinos, Genting Stanley’s parent group operates some of the most prestigious hotel complexes in the world.
One of the best known is as the Genting Highlands Resort in Malaysia, which offers a wide array of leisure and entertainment facilities supported by no less than 10,000 hotel rooms.
Genting International is also developing the £2.2 billion “Resorts World at Sentosa” integrated resort in Singapore which will be home to a world-class range of attractions including a Universal Studios theme park.
Source
Sunday, October 5, 2008
Genting subscribes to additional 300 million shares in RWS
PETALING JAYA: Genting International Plc has subscribed to an additional 300 million new shares in Resorts World at Sentosa Pte Ltd (RWS) for S$300mil cash.
Proceeds from its rights issue last year of 3.61 billion new shares would be used to pay for the new shares in RWS, Genting said in a filing with the Singapore Exchange on Thursday.
The additional investment in RWS via its wholly-owned subsidiary Star Eagle Holdings Ltd would not have any material impact on the net tangible assets and earnings per share of Genting for the financial year ending Dec 31, 2008, it said.
RWS, which was awarded the right to develop an integrated resort project on Sentosa island by the Singapore government in 2006, had completed in April the syndication of S$4bil credit facilities for the integrated resort development.
The credit facilities were expected to fund two-thirds of the S$6bil project cost with the remaining to be paid through equity raised through the successful rights issue last year by Genting International.
Genting International, the parent of RWS, is a 54.5% unit of Malaysia’s Genting Bhd.
Source
Proceeds from its rights issue last year of 3.61 billion new shares would be used to pay for the new shares in RWS, Genting said in a filing with the Singapore Exchange on Thursday.
The additional investment in RWS via its wholly-owned subsidiary Star Eagle Holdings Ltd would not have any material impact on the net tangible assets and earnings per share of Genting for the financial year ending Dec 31, 2008, it said.
RWS, which was awarded the right to develop an integrated resort project on Sentosa island by the Singapore government in 2006, had completed in April the syndication of S$4bil credit facilities for the integrated resort development.
The credit facilities were expected to fund two-thirds of the S$6bil project cost with the remaining to be paid through equity raised through the successful rights issue last year by Genting International.
Genting International, the parent of RWS, is a 54.5% unit of Malaysia’s Genting Bhd.
Source
Tuesday, September 30, 2008
新加坡元尾盘走高，因美元承压，交易员调整头寸
亚洲汇市周二尾盘，新加坡元走高，因美国众议院(House of Representatives)前夜意外否决政府的金融业救助计划后美元承压，另外交易员们纷纷赶在周三新加坡回教开斋节假日来临前调整头寸。
美元最新报1.4348新元，较前一交易日下跌0.0049新元。
交易员称，新元盘中一直在窄幅波动，盘中高点为1.4341新元，低点为1.4295新元。
市场关注的焦点仍是新加坡金融管理局(Monetary Authority of Singapore)接下来的行动。
新加坡金融管理局将于10月10日公布其政策声明。
美元最新报1.4348新元，较前一交易日下跌0.0049新元。
交易员称，新元盘中一直在窄幅波动，盘中高点为1.4341新元，低点为1.4295新元。
市场关注的焦点仍是新加坡金融管理局(Monetary Authority of Singapore)接下来的行动。
新加坡金融管理局将于10月10日公布其政策声明。
Wednesday, September 17, 2008
宏威集团：太阳能健厂如期；08年二季度利润1820万元港币
宏威科技力图成为太阳能模组全球制造商的宏伟抱负正在中国河南省逐渐成型。
新加坡分析员访问团日前拜访了占地13万平方米的工厂，宏威和中国的合作伙伴将在此建造中国首条全自动生产薄膜太阳能组件的生产线。
宏威财务主管胡伟健说：“这个工厂从今年3月份开始建设，进展顺利，将于明年第一季度开始运作。
”宏威期望该新厂09年第一季度就能产生收入，第一笔销售客户是巴西能源公司（Brazil Energy），这是一家巴西主要的控股投资公司，主要业务是能源和基础设施建设项目。宏威与巴西能源公司已经接洽关于出售高达5兆瓦(MW)的太阳能组件的初步协议。宏威的薄膜模组每瓦特最高售价为2.5元美金，而生产成本却不到1元美金。
宏威的生产能力到2010年将从40MW提升到120MW，希望到2013年能成为世界前十强的太阳能模组生产商。宏威－其股票在新加坡交易所上市－还和巴西能源签署了关于2009年下半年研发和销售太阳能模组生产线的协议。
“巴西能源来找我们洽谈是因为我们在南美出色的业务表现，在南美，我们DVD刻录光盘（DVD-R）主要设备的销售占领了30％的市场份额，”宏威集团首席执行官范继良在先前接受NEXTINSIGHT采访时说。“太阳能技术与光盘技术有某些共通性，”当被问及宏威如何运用光盘业务领域的技术发展太阳能业务时，范总解释道。宏威集团是世界第二大光碟复制设备制造商，包括DVDR和蓝光光盘。它是惟一一家同时具备光盘制造能力和贸易网络的生产销售企业。
第二季度的净利润达到1820万元港币
得益于集团媒体产品制造和贸易部门的强劲销售额，第二季度的营业收入激增125％达到2.82亿元港币，其中这两个部门的贡献额为2.2亿元港币。设备制造部门贡献了余下的6200万元港币。
股东应得溢利为1820万元港币，相较去年第二季度仅为250万元港币。
宏威去年第四季度收购了媒体产品制造和贸易部门，现在公司正从该收购项目获得现金流的利处。
这项收购业务能给集团带来稳定的现金流入，这能保障集团对于研发项目的长期投入，包括媒体产品行业和新尝试项目（例如太阳能业务）。
08财政年第二季度的分销费用是1600万元港币，比07财政年700万元的分销费用高了132％。08财政年第二季度的管理费用为3400万元港币，同比去年增加159％。
较高的费用水平是由于合并了去年第四季度收购的媒体产品制造和贸易业务所产生的费用。
在今年上半年，宏威获得了价值930万元港币的政府补助。为了在高科技领域进一步推进中国设备制造商的发展，集团认为政府这类补助将会持续。
到目前为止，给宏威的政府补助金均用于资助前沿科技产品的研发，包括蓝光技术，有机发光二极管( OLED )和太阳能技术。
七月，中国总理温家宝访问了集团在中国东莞的设备制造厂。他鼓励宏威团队继续为中国的太阳能事业做出贡献。
宏威的最近收盘价为5.5分，这已经是在它每股8.46分新币的资产净值上打了个折扣。
Source
新加坡分析员访问团日前拜访了占地13万平方米的工厂，宏威和中国的合作伙伴将在此建造中国首条全自动生产薄膜太阳能组件的生产线。
宏威财务主管胡伟健说：“这个工厂从今年3月份开始建设，进展顺利，将于明年第一季度开始运作。
”宏威期望该新厂09年第一季度就能产生收入，第一笔销售客户是巴西能源公司（Brazil Energy），这是一家巴西主要的控股投资公司，主要业务是能源和基础设施建设项目。宏威与巴西能源公司已经接洽关于出售高达5兆瓦(MW)的太阳能组件的初步协议。宏威的薄膜模组每瓦特最高售价为2.5元美金，而生产成本却不到1元美金。
宏威的生产能力到2010年将从40MW提升到120MW，希望到2013年能成为世界前十强的太阳能模组生产商。宏威－其股票在新加坡交易所上市－还和巴西能源签署了关于2009年下半年研发和销售太阳能模组生产线的协议。
“巴西能源来找我们洽谈是因为我们在南美出色的业务表现，在南美，我们DVD刻录光盘（DVD-R）主要设备的销售占领了30％的市场份额，”宏威集团首席执行官范继良在先前接受NEXTINSIGHT采访时说。“太阳能技术与光盘技术有某些共通性，”当被问及宏威如何运用光盘业务领域的技术发展太阳能业务时，范总解释道。宏威集团是世界第二大光碟复制设备制造商，包括DVDR和蓝光光盘。它是惟一一家同时具备光盘制造能力和贸易网络的生产销售企业。
第二季度的净利润达到1820万元港币
得益于集团媒体产品制造和贸易部门的强劲销售额，第二季度的营业收入激增125％达到2.82亿元港币，其中这两个部门的贡献额为2.2亿元港币。设备制造部门贡献了余下的6200万元港币。
股东应得溢利为1820万元港币，相较去年第二季度仅为250万元港币。
宏威去年第四季度收购了媒体产品制造和贸易部门，现在公司正从该收购项目获得现金流的利处。
这项收购业务能给集团带来稳定的现金流入，这能保障集团对于研发项目的长期投入，包括媒体产品行业和新尝试项目（例如太阳能业务）。
08财政年第二季度的分销费用是1600万元港币，比07财政年700万元的分销费用高了132％。08财政年第二季度的管理费用为3400万元港币，同比去年增加159％。
较高的费用水平是由于合并了去年第四季度收购的媒体产品制造和贸易业务所产生的费用。
在今年上半年，宏威获得了价值930万元港币的政府补助。为了在高科技领域进一步推进中国设备制造商的发展，集团认为政府这类补助将会持续。
到目前为止，给宏威的政府补助金均用于资助前沿科技产品的研发，包括蓝光技术，有机发光二极管( OLED )和太阳能技术。
七月，中国总理温家宝访问了集团在中国东莞的设备制造厂。他鼓励宏威团队继续为中国的太阳能事业做出贡献。
宏威的最近收盘价为5.5分，这已经是在它每股8.46分新币的资产净值上打了个折扣。
Source
Sunday, September 7, 2008
Sentosa to review transport links in time for IR
New chief also plans to create fresh masterplan and ensure smooth opening for attractions
THE new chief of Sentosa said the resort island is evaluating its transport network to make sure it can handle the hordes of visitors expected to accompany the opening of its integrated resort (IR) in 2010.
Mr Mike Barclay said the island's cable cars, buses, skytrains and roads would be examined to ensure they can accommodate up to 15 million people a year.
He said: 'The opening of the IR will bring many challenges for areas like infrastructure. We must make sure we can handle the capacity.'
Mr Barclay, who became Sentosa's chief last month, was speaking for the first time about his outlook for the island. Along with re-evaluating the transport grid, Mr Barclay hopes to create a new 10-year masterplan and see several new beach attractions open next year.
When it opens in the first quarter of 2010, Resorts World at Sentosa is expected to more than double the six million people who visit the area annually. It will include attractions such as Asia's first Universal Studio and a Marine Life Park with whale sharks.
Two weeks into the job, the 41-year-old said he is unable to give more concrete plans on what he intends to do. He took over from Mr Darrell Metzger, who quit last April.
However, Mr Barclay said he wants to 'enrich a very good model that we have here'.
His short-term goal is to make sure four new attractions slated to open on Siloso Beach by next year do so smoothly.
The beach will have a new zipline, a sky diving simulator and a machine that creates waves up to 3m high for surfers. It is also expected to feature a watersports centre that will have food and beverage outlets as well as various sea sports.
Mr Barclay is also working on a new 10-year masterplan for the development of the island after the last masterplan spearheaded by his predecessor was completed earlier this year. Mr Metzger was credited with turning around the island's fortunes, reviving lagging visitor numbers and lacklustre attractions.
The new masterplan is expected to be up by the end of the year. Mr Barclay said: 'It is an exciting time ahead for us.'
However, one hotel project that was supposed to have opened on the island this year has stalled. The $45 million Palawan Beach Resort by NTUC Club is back on the drawing board amid rocketing land construction costs.
The 200-room resort was announced three years ago as a high-end hotel for the working class.
A NTUC Club spokesman said it is 'reviewing the concept and plans of the resort' to ensure that it will 'serve our social mission to provide an affordable social and recreational facility for our members and the masses'.
Friday, August 29, 2008
* Malaysia jumps 2.8 percent to highest close in two weeks
* Financials and blue chips rebound from lows this week
By Yvonne Cheong
SINGAPORE, Aug 29 (Reuters) - Singapore and Malaysia stock markets rebounded on Friday to their highest close this week, as investors picked up financials and other blue chips, but analysts said they expect volatility ahead as growth concerns and politics weigh.
Malaysia's benchmark index <.KLSE> rose 2.8 percent to its highest close since August 15 after its Prime Minister unveiled a budget that boosted shares of casino operator Genting , which jumped 10.4 percent.
"It was the end of the month. You had a budget with no gambling tax rises. Genting alone contributed four points to the index today," said a Malaysia-based trader.
Other Asian markets climbed after a big upward revision to second-quarter U.S. economic growth boosted the outlook for demand, but shares posted their fourth consecutive monthly decline.
Singapore stocks <.FTSTI> rose 1.8 percent, while Indonesia <.JKSE> added 1 percent. The Philippine index <.PSI> was 1.2 percent higher and Thailand <.SETI> edged up 0.2 percent. Vietnam's market <.VNI> shed 0.2 percent on the day but gained more than 20 percent in August. Singapore fared worst during August, falling 5.7 percent.
Bourse operator Singapore Exchange jumped 4.1 percent to its highest in over a week after Macquarie Research upgraded the stock. [nSIN59062]
Top lender DBS Bank also surged 3.1 percent, while rival United Overseas Bank recovered 1.8 percent. "It's a technical rebound given that the market has been heavily sold the past week," said a Singapore-based dealer.
Singapore-listed Chinese shipbuilders COSCO Corp also lept 8 percent as China stocks <.SSEC> rose on hopes of regulatory steps to boost the market. [nSHA89432]
In Malaysia, Maybank > soared 6.1 percent to its highest in 3 weeks, while Bumiputra Commerce swelled 5.7 percent to a two week high.
Maybank's $2.7 billion attempt to buy Bank Internasional Indonesia was dealt another blow on Friday, with Indonesia's regulator ruling out making an exception on takeover rules. Malaysia's central bank blocked the plan on concerns the rules could cause losses at Maybank. Index heavyweights Sime Darby and IOI Corp were also lifted as palm futures climbed 3.1 percent. (Additional reporting by David Chance, Editing by Lincoln Feast)
* Financials and blue chips rebound from lows this week
By Yvonne Cheong
SINGAPORE, Aug 29 (Reuters) - Singapore and Malaysia stock markets rebounded on Friday to their highest close this week, as investors picked up financials and other blue chips, but analysts said they expect volatility ahead as growth concerns and politics weigh.
Malaysia's benchmark index <.KLSE> rose 2.8 percent to its highest close since August 15 after its Prime Minister unveiled a budget that boosted shares of casino operator Genting , which jumped 10.4 percent.
"It was the end of the month. You had a budget with no gambling tax rises. Genting alone contributed four points to the index today," said a Malaysia-based trader.
Other Asian markets climbed after a big upward revision to second-quarter U.S. economic growth boosted the outlook for demand, but shares posted their fourth consecutive monthly decline.
Singapore stocks <.FTSTI> rose 1.8 percent, while Indonesia <.JKSE> added 1 percent. The Philippine index <.PSI> was 1.2 percent higher and Thailand <.SETI> edged up 0.2 percent. Vietnam's market <.VNI> shed 0.2 percent on the day but gained more than 20 percent in August. Singapore fared worst during August, falling 5.7 percent.
Bourse operator Singapore Exchange jumped 4.1 percent to its highest in over a week after Macquarie Research upgraded the stock. [nSIN59062]
Top lender DBS Bank also surged 3.1 percent, while rival United Overseas Bank recovered 1.8 percent. "It's a technical rebound given that the market has been heavily sold the past week," said a Singapore-based dealer.
Singapore-listed Chinese shipbuilders COSCO Corp also lept 8 percent as China stocks <.SSEC> rose on hopes of regulatory steps to boost the market. [nSHA89432]
In Malaysia, Maybank > soared 6.1 percent to its highest in 3 weeks, while Bumiputra Commerce swelled 5.7 percent to a two week high.
Maybank's $2.7 billion attempt to buy Bank Internasional Indonesia was dealt another blow on Friday, with Indonesia's regulator ruling out making an exception on takeover rules. Malaysia's central bank blocked the plan on concerns the rules could cause losses at Maybank. Index heavyweights Sime Darby and IOI Corp were also lifted as palm futures climbed 3.1 percent. (Additional reporting by David Chance, Editing by Lincoln Feast)
Friday, August 22, 2008
新加坡股市收盘走高，大宗商品类股上扬
新加坡股市周五收盘小幅走高，但地产类股的疲软走势部分抵消了大宗商品类股上涨带来的影响。
新加坡海峡时报指数收盘涨9.8点，至2723.30点，涨幅0.4%；大盘有212只股上涨，197只股下跌。
成交量为6.452亿股，低于周四的8.589亿股。
原油价格前夜上涨5%导致蓝筹股走势不一。
海峡时报指数30只成分股中，17只上涨，8只下跌，5只持平。
辉立证券(Phillip Securities)交易员Joe Tiong称，今日市场交投十分淡静；尽管油价飙升，市场成交量仍然处于低位。
Tiong称，下周新加坡股市料将走高，因为他预计原油价格将再次回落。
新加坡海峡时报指数收盘涨9.8点，至2723.30点，涨幅0.4%；大盘有212只股上涨，197只股下跌。
成交量为6.452亿股，低于周四的8.589亿股。
原油价格前夜上涨5%导致蓝筹股走势不一。
海峡时报指数30只成分股中，17只上涨，8只下跌，5只持平。
辉立证券(Phillip Securities)交易员Joe Tiong称，今日市场交投十分淡静；尽管油价飙升，市场成交量仍然处于低位。
Tiong称，下周新加坡股市料将走高，因为他预计原油价格将再次回落。
Monday, August 18, 2008
18-08-2008: Poser over Hong Leong’s bet on UK gaming
KUALA LUMPUR: Hong Leong Company (Malaysia) Bhd’s strategy in buying into UK casino and bingo-club operator, Rank Group plc, remains unclear even as it moves closer towards a 30% shareholding threshold requiring a takeover offer, industry observers said.
As of Aug 12, Hong Leong, controlled by billionaire Tan Sri Quek Leng Chan, had increased its stake in Rank to 22.3% from 18.1% on July 22. Now the largest shareholder in Rank, Hong Leong began buying shares in the gaming operator in January, prompting speculation of a takeover.
An analyst at a local research house said: “Hong Leong seems intent on buying into Rank.
Although the shares are at an attractive level, it is unclear what their strategy is. It is hard to see where they are going and how they could succeed.”
Hong Leong’s interest in Rank is held via units of Hong Kong-listed Guoco Group Ltd, which is controlled by Hong Leong, whose listed entities in Malaysia include Hong Leong Financial Group Bhd.
Incidentally, Genting Bhd has also acquired an 11% stake in Rank since late last year, but it has been reported that Genting rejected claims it would make a bid for Rank.
Rank’s share price slumped last year following a profit warning issued in October. Although the UK’s second-largest casino and bingo-club operator, the gaming company has seen sales declining since the introduction of UK’s indoor smoking ban.
Its share price rose 2.2% to 82.75 pence on Aug 12 after Hong Leong raised its interest in the company that day. The price has since retreated, and was down 0.25p to 79.75p as of 6pm last Friday.
Meanwhile, the analyst said Hong Leong’s initial venture into UK’s gaming industry, the Clermont Club casino, had not been doing well due to the economic downturn and its continued investment in the sector was questionable. The company had bought the casino from Rank for £31 million (RM193.52 million) in 2006 through its hospitality and leisure arm, Guoco Leisure Ltd.
A gaming market watcher said that although Hong Leong had aggressively applied for casino licences in the UK, most had been rejected. According to Guoco Leisure’s 2007 annual report, it had secured three casino licences.
“Although Rank was a cheap buy, gaming is not Hong Leong’s expertise. We are uncertain why Hong Leong is continuing to pursue the business,” the market watcher said.
For the six months to June 30, 2008, Rank reported a revenue of £257 million, against £284.6 million a year earlier, while profit before tax was halved to £17.6 million.
Rank chief executive Ian Burke had said: “During the first half of 2008, we succeeded in stabilising the group’s financial performance, following a very difficult end to last year.
“Although group revenue and operating profit were substantially lower than in the first six months of last year, our performance reflects a significant improvement compared with the second half of 2007. The trading environment for all of our businesses remains challenging, with rising operating costs and increased financial pressures on our customers.”
Source
As of Aug 12, Hong Leong, controlled by billionaire Tan Sri Quek Leng Chan, had increased its stake in Rank to 22.3% from 18.1% on July 22. Now the largest shareholder in Rank, Hong Leong began buying shares in the gaming operator in January, prompting speculation of a takeover.
An analyst at a local research house said: “Hong Leong seems intent on buying into Rank.
Although the shares are at an attractive level, it is unclear what their strategy is. It is hard to see where they are going and how they could succeed.”
Hong Leong’s interest in Rank is held via units of Hong Kong-listed Guoco Group Ltd, which is controlled by Hong Leong, whose listed entities in Malaysia include Hong Leong Financial Group Bhd.
Incidentally, Genting Bhd has also acquired an 11% stake in Rank since late last year, but it has been reported that Genting rejected claims it would make a bid for Rank.
Rank’s share price slumped last year following a profit warning issued in October. Although the UK’s second-largest casino and bingo-club operator, the gaming company has seen sales declining since the introduction of UK’s indoor smoking ban.
Its share price rose 2.2% to 82.75 pence on Aug 12 after Hong Leong raised its interest in the company that day. The price has since retreated, and was down 0.25p to 79.75p as of 6pm last Friday.
Meanwhile, the analyst said Hong Leong’s initial venture into UK’s gaming industry, the Clermont Club casino, had not been doing well due to the economic downturn and its continued investment in the sector was questionable. The company had bought the casino from Rank for £31 million (RM193.52 million) in 2006 through its hospitality and leisure arm, Guoco Leisure Ltd.
A gaming market watcher said that although Hong Leong had aggressively applied for casino licences in the UK, most had been rejected. According to Guoco Leisure’s 2007 annual report, it had secured three casino licences.
“Although Rank was a cheap buy, gaming is not Hong Leong’s expertise. We are uncertain why Hong Leong is continuing to pursue the business,” the market watcher said.
For the six months to June 30, 2008, Rank reported a revenue of £257 million, against £284.6 million a year earlier, while profit before tax was halved to £17.6 million.
Rank chief executive Ian Burke had said: “During the first half of 2008, we succeeded in stabilising the group’s financial performance, following a very difficult end to last year.
“Although group revenue and operating profit were substantially lower than in the first six months of last year, our performance reflects a significant improvement compared with the second half of 2007. The trading environment for all of our businesses remains challenging, with rising operating costs and increased financial pressures on our customers.”
Source
Thursday, August 14, 2008
丽星邮轮(HK)中期亏损减少至4,943.6万美元
新加坡股市收高，受大宗商品、钻井平台建筑商类股上涨的提振
新加坡股市周四收盘上涨，受大宗商品和钻探平台建筑商类股上涨提振，但交易员们警告称，全球经济前景的不确定性将继续拖累投资者人气。
基准海峡时报指数收盘涨4.87点，至2816.66点，涨幅0.2%；大盘有251只股票上涨，231只股票下跌。成交量保持清淡，今日成交量为11.4亿股，周三为10亿股。
30只成份股中，有16只股票收盘走高，12只股票收盘走低，其余2只收盘持平。
基准海峡时报指数收盘涨4.87点，至2816.66点，涨幅0.2%；大盘有251只股票上涨，231只股票下跌。成交量保持清淡，今日成交量为11.4亿股，周三为10亿股。
30只成份股中，有16只股票收盘走高，12只股票收盘走低，其余2只收盘持平。
14-08-2008: Genting Intl 2Q net loss narrows to S$1.8m
KUALA LUMPUR: Genting International Public Ltd Co’s net loss narrowed to S$1.8 million (RM4.3 million) for the second quarter ended June 30 (2QFY08) from a loss of S$54.1 million a year earlier.
The results were affected by a one-off redundancy costs as well as costs of closure of certain casinos which are steps taken by the group to address the current challenging trading environment in the UK. Revenue fell 34% to S$126.3 million due to the poor performance of UK casinos.
Lower patronage and drops per head were exacerbated by lower win percentage due to luck factor in the current quarter, the company said in a statement yesterday.
For the first half of this year, the group recorded a drop of 69% in net profit, which came in at S$4.2 million from S$13.8 million a year earlier. Casino operations remained the largest revenue contributor to the group, with S$267.3 million in 2008, which was a drop of 35% from S$359.7 million in 2007.
It is the largest casino operator in the UK, with 44 casinos, comprising 39 within provincial estates and five in London including some of the finest casinos in the UK.
It had in June this year entered into a partnership with NEC Group in UK, through its wholly owned subsidiary Genting Stanley (Solihull) Ltd, to develope a leisure and development complex at The National Exhibition Centre (NEC) in Birmingham for £90 million (RM559.3 million).
Genting also said that the construction was progressing well for its integrated resort in Sentosa Island, Singapore, and the soft opening scheduled for early 2010 was on track.
As at June 30, 2008, more than S$2.9 billion in construction contracts ranging from road diversion works to reclamation, substructure and main builder works for four hotels, casinos, ballroom, showroom and retail area have been awarded.
Source
The results were affected by a one-off redundancy costs as well as costs of closure of certain casinos which are steps taken by the group to address the current challenging trading environment in the UK. Revenue fell 34% to S$126.3 million due to the poor performance of UK casinos.
Lower patronage and drops per head were exacerbated by lower win percentage due to luck factor in the current quarter, the company said in a statement yesterday.
For the first half of this year, the group recorded a drop of 69% in net profit, which came in at S$4.2 million from S$13.8 million a year earlier. Casino operations remained the largest revenue contributor to the group, with S$267.3 million in 2008, which was a drop of 35% from S$359.7 million in 2007.
It is the largest casino operator in the UK, with 44 casinos, comprising 39 within provincial estates and five in London including some of the finest casinos in the UK.
It had in June this year entered into a partnership with NEC Group in UK, through its wholly owned subsidiary Genting Stanley (Solihull) Ltd, to develope a leisure and development complex at The National Exhibition Centre (NEC) in Birmingham for £90 million (RM559.3 million).
Genting also said that the construction was progressing well for its integrated resort in Sentosa Island, Singapore, and the soft opening scheduled for early 2010 was on track.
As at June 30, 2008, more than S$2.9 billion in construction contracts ranging from road diversion works to reclamation, substructure and main builder works for four hotels, casinos, ballroom, showroom and retail area have been awarded.
Source
Tuesday, August 12, 2008
IRs on track to open in 2009, 2010
TWO years after the contracts for the integrated resorts (IRs) were awarded, both Marina Bay Sands (MBS) and Resorts World at Sentosa (RWS) say they are on track to open in December next year and the following year, respectively.
Hiring for the 10,000 staff that each resort will need is expected to start next year.
Rising construction costs, however, have caused a blip in their plans, with both resorts having to revise their budgets.
Soaring prices of building materials have seen MBS' cost rising from an estimated US$3.6 billion (S$4.9 billion) to US$4.5 billion.
And RWS, initially projected to cost $5.2 billion, bumped up its budget last November to $6 billion.
Both IRs told The Straits Times that the budgets were not likely to swell further.
MBS general manager George Tanasijevich said: 'Most of the construction contracts have been given out already, so costs of materials have already been factored in.'
Both IRs report that construction is going at full steam.
Mr Tanasijevich, asked in an interview yesterday on why the construction at Marina Bay seemed to be going more slowly than the work at RWS, retorted: 'Well, 40 per cent of our project actually lies deep underground.'
Workers at Marina Bay have had to struggle with building on land reclaimed with marine clay, but with the foundations having been laid, the buildings are beginning to 'see light' now.
'From now on, we should expect to see the construction moving very, very rapidly.'
By next June, the three ironic 55-storey hotel blocks should be completed, so the resort should be ready to open its doors in December next year.
RWS' head of communications Krist Boo said the resort's superstructures will be completed by the first or second quarter of next year. By year end, the centrepiece Universal Studios attraction will be completed and go into its testing phase. The resort will open on schedule by the first quarter of 2010.
Next month, RWS' construction team will work round the clock to complete the underground buildings; work will be ramped up in the building of the superstructures.
Ms Boo said: 'Never in Singapore has anything been built at such speed.'
In hiring, both IRs are facing a major headache in filling their vacancies - each needs a range of workers from bell-hops to cashiers, theatre performers to animal trainers.
Mr Tanasijevich and Ms Boo said they expect to start hiring the bulk of the workers from the middle of next year. Each IR is expected to create some 30,000 jobs for the Singapore economy.
For jobs that did not previously exist here, like amusement park operators, Ms Boo said 60 key staff members will be sent to Universal Studios in Orlando, Florida, for a six-month training stint.
The IRs have also been working hard at securing new retail brands, readying their permanent in-house entertainment and courting the Meetings, Incentive Travel, Conventions and Exhibitions (Mice) market.
MBS has secured about 195 tenants for its 300 shops, where annual rents will run to US$453 per sq ft; it is also talking to 30 exhibition organisers and 40 conference organisers to bring major events here.
RWS has sold its meeting facilities worldwide, Ms Boo said, and is also in talks with some organisers to bring shows here.
Both camps are positive their projects will be a success.
As Mr Tanasijevich put it: 'Our optimism has done nothing but rise since we started.'
Source
Hiring for the 10,000 staff that each resort will need is expected to start next year.
Rising construction costs, however, have caused a blip in their plans, with both resorts having to revise their budgets.
Soaring prices of building materials have seen MBS' cost rising from an estimated US$3.6 billion (S$4.9 billion) to US$4.5 billion.
And RWS, initially projected to cost $5.2 billion, bumped up its budget last November to $6 billion.
Both IRs told The Straits Times that the budgets were not likely to swell further.
MBS general manager George Tanasijevich said: 'Most of the construction contracts have been given out already, so costs of materials have already been factored in.'
Both IRs report that construction is going at full steam.
Mr Tanasijevich, asked in an interview yesterday on why the construction at Marina Bay seemed to be going more slowly than the work at RWS, retorted: 'Well, 40 per cent of our project actually lies deep underground.'
Workers at Marina Bay have had to struggle with building on land reclaimed with marine clay, but with the foundations having been laid, the buildings are beginning to 'see light' now.
'From now on, we should expect to see the construction moving very, very rapidly.'
By next June, the three ironic 55-storey hotel blocks should be completed, so the resort should be ready to open its doors in December next year.
RWS' head of communications Krist Boo said the resort's superstructures will be completed by the first or second quarter of next year. By year end, the centrepiece Universal Studios attraction will be completed and go into its testing phase. The resort will open on schedule by the first quarter of 2010.
Next month, RWS' construction team will work round the clock to complete the underground buildings; work will be ramped up in the building of the superstructures.
Ms Boo said: 'Never in Singapore has anything been built at such speed.'
In hiring, both IRs are facing a major headache in filling their vacancies - each needs a range of workers from bell-hops to cashiers, theatre performers to animal trainers.
Mr Tanasijevich and Ms Boo said they expect to start hiring the bulk of the workers from the middle of next year. Each IR is expected to create some 30,000 jobs for the Singapore economy.
For jobs that did not previously exist here, like amusement park operators, Ms Boo said 60 key staff members will be sent to Universal Studios in Orlando, Florida, for a six-month training stint.
The IRs have also been working hard at securing new retail brands, readying their permanent in-house entertainment and courting the Meetings, Incentive Travel, Conventions and Exhibitions (Mice) market.
MBS has secured about 195 tenants for its 300 shops, where annual rents will run to US$453 per sq ft; it is also talking to 30 exhibition organisers and 40 conference organisers to bring major events here.
RWS has sold its meeting facilities worldwide, Ms Boo said, and is also in talks with some organisers to bring shows here.
Both camps are positive their projects will be a success.
As Mr Tanasijevich put it: 'Our optimism has done nothing but rise since we started.'
Source
丽星邮轮在菲律宾 合资发展酒店及赌场业务
丽星邮轮(Star Cruises)宣布与菲律宾上市公司Alliance Global Group(AGI)签署合作协议，将携手发展菲律宾酒店及赌场综合业务，包括Newport City项目及Bagong Nayong Pilipino娱乐城马尼拉项目。
为此，丽星邮轮将以3亿3500万美元（4亿7000万新元）收购AGI旗下Ttravellers公司的50％股权。Travellers及丽星邮轮将组成合资公司，以发展有关项目。
Travellers将持有合营公司60％股权，而丽星邮轮则持有40％股权。丽星邮轮可在适用法律准许的情况下，增持它于合资公司的股权至75％。
Source
为此，丽星邮轮将以3亿3500万美元（4亿7000万新元）收购AGI旗下Ttravellers公司的50％股权。Travellers及丽星邮轮将组成合资公司，以发展有关项目。
Travellers将持有合营公司60％股权，而丽星邮轮则持有40％股权。丽星邮轮可在适用法律准许的情况下，增持它于合资公司的股权至75％。
Source
Friday, July 18, 2008
新加坡股市收盘走低，因美国公司业绩疲软、油价回落
新加坡股市周五下滑，因美国公司业绩疲弱，令投资者担心金融市场的颓弱形势仍将延续。
海峡时报指数收盘下跌16.37点，至2847.73点，跌幅0.6%。
30只成份股中，19只收盘走低，4只持平，7只走高。
整体市场，下跌股为389只，上涨股为161只。
成交量仍然较低，为10亿股，与周四持平。
当地银行某分析师称，目前几乎没有利好消息。
他指出，前夜美国市场原油结算价跌破每桶130美元，或对普遍从能源价格走高中获益的主要大宗商品和钻井平台建筑商类股构成冲击。
他预计，花旗集团(Citigroup)周五晚些时候公布的业绩将为股市下周的走势提供指引。
海峡时报指数收盘下跌16.37点，至2847.73点，跌幅0.6%。
30只成份股中，19只收盘走低，4只持平，7只走高。
整体市场，下跌股为389只，上涨股为161只。
成交量仍然较低，为10亿股，与周四持平。
当地银行某分析师称，目前几乎没有利好消息。
他指出，前夜美国市场原油结算价跌破每桶130美元，或对普遍从能源价格走高中获益的主要大宗商品和钻井平台建筑商类股构成冲击。
他预计，花旗集团(Citigroup)周五晚些时候公布的业绩将为股市下周的走势提供指引。
新加坡股市收盘走高，追随美国股市涨势；但上行空间有限
新加坡股市周四收盘连续第二个交易日走高，追随了美国股市因油价回落而上涨的走势。
海峡时报指数收盘升28.78，至2864.10点，升幅1.0%。
海峡时报指数30只成份股中，23只收盘走高，5只收盘走低，2只收盘持平。
整体市场中，312只股票上涨，216只下跌。
市场成交量为10亿股，周三为9.277亿股。
但交易员对股市周四表现能否持续持怀疑态度。
某当地交易员称，股市此次上涨意义不大，只是因油价回落而暂时走高。
海峡时报指数收盘升28.78，至2864.10点，升幅1.0%。
海峡时报指数30只成份股中，23只收盘走高，5只收盘走低，2只收盘持平。
整体市场中，312只股票上涨，216只下跌。
市场成交量为10亿股，周三为9.277亿股。
但交易员对股市周四表现能否持续持怀疑态度。
某当地交易员称，股市此次上涨意义不大，只是因油价回落而暂时走高。
Monday, July 14, 2008
Resort dev’t project at Manila Bay: AGI sets $ 1-B deal with Star Cruises
Alliance Global Group, Inc. (AGI) is expecteds to finally sign within the month a joint venture agreement with Star Cruises Limited for a $ 1-billion integrated leisure and resort development as part of the multi-billion dollar Bagong Nayong Pilipino Manila Bay Integrated City Project.
In an interview with reporters, Alliance Global chairman Andrew Tan said negotiations are being finalized and should be completed before the end of the month.
Tan said Alliance Global is expected to hold a 60 percent stake in the joint venture since Philippine laws require that corporations engaged in real estate development should be at least 60 percent Filipino-owned.
He disclosed that the joint venture is expected to build at least 1,500 hotel rooms in the resort project spread out over several phases of development.
Travellers International Hotel Group, Inc., a subsidiary of AGI, will be the vehicle for the team up with Star Cruises, an affiliate of the Malaysian conglomerate the Genting Group.
The joint venture will participate in Philippine Amusement & Gaming Corporation’s (PAGCOR) vision to build an integrated tourism zone on a 40-hectare property in the Manila Bay reclamation area called Bagong Nayong Pilipino Manila Bay Integrated City (BNP-IC).
PAGCOR aims to use the BNP-IC as a catalyst to sustain the growth of our tourism industry.
PAGCOR hopes that the massive development will attract at least $ 4 billion in investments from both foreign and local investors and expects to generate about 100,000 jobs once the entire development is fully completed.
PAGCOR has recently announced that Travellers has qualified to participate with the development of its integrated resort project.
"Our proposal comes at an opportune time when there is increasing awareness of the Philippines as a tourist destination, with the country achieving a milestone in 2007 with a record three million tourist arrivals for the first time in its history," said Tan.
He noted that, "with the continued surge in tourist arrivals, we expect existing stock of hotel rooms to fall short of demand."
Travellers is also planning to build an all-suites hotel to be called Maxim’s Hotel in cooperation with Star Cruises in Newport City with an investment of approximately P3.8 billion.
"With the opening of Ninoy Aquino International Airport Terminal 3, we are expecting a surge in tourist arrivals," Tan said adding that that The Maxim’s Hotel will be rushed to give these tourists a memorable and positive business experience in the country.
Maxim’s Hotel is a luxury hotel brand of Genting Group, a sister company of Star Cruises Ltd.(JAL)
Source
In an interview with reporters, Alliance Global chairman Andrew Tan said negotiations are being finalized and should be completed before the end of the month.
Tan said Alliance Global is expected to hold a 60 percent stake in the joint venture since Philippine laws require that corporations engaged in real estate development should be at least 60 percent Filipino-owned.
He disclosed that the joint venture is expected to build at least 1,500 hotel rooms in the resort project spread out over several phases of development.
Travellers International Hotel Group, Inc., a subsidiary of AGI, will be the vehicle for the team up with Star Cruises, an affiliate of the Malaysian conglomerate the Genting Group.
The joint venture will participate in Philippine Amusement & Gaming Corporation’s (PAGCOR) vision to build an integrated tourism zone on a 40-hectare property in the Manila Bay reclamation area called Bagong Nayong Pilipino Manila Bay Integrated City (BNP-IC).
PAGCOR aims to use the BNP-IC as a catalyst to sustain the growth of our tourism industry.
PAGCOR hopes that the massive development will attract at least $ 4 billion in investments from both foreign and local investors and expects to generate about 100,000 jobs once the entire development is fully completed.
PAGCOR has recently announced that Travellers has qualified to participate with the development of its integrated resort project.
"Our proposal comes at an opportune time when there is increasing awareness of the Philippines as a tourist destination, with the country achieving a milestone in 2007 with a record three million tourist arrivals for the first time in its history," said Tan.
He noted that, "with the continued surge in tourist arrivals, we expect existing stock of hotel rooms to fall short of demand."
Travellers is also planning to build an all-suites hotel to be called Maxim’s Hotel in cooperation with Star Cruises in Newport City with an investment of approximately P3.8 billion.
"With the opening of Ninoy Aquino International Airport Terminal 3, we are expecting a surge in tourist arrivals," Tan said adding that that The Maxim’s Hotel will be rushed to give these tourists a memorable and positive business experience in the country.
Maxim’s Hotel is a luxury hotel brand of Genting Group, a sister company of Star Cruises Ltd.(JAL)
Source
新加坡股市收盘走低；市场等待美国股市交投线索
新加坡股市周一收盘走低，因对石油 格高企和美国金融行业的担心导致情绪紧张的投资者离场观望。
某当地交易员称，因油价高企和经济增长放缓持续拖累市场人气，美国政府拯救抵押贷款商联邦住房贷款抵押公司(Federal Home Loan Mortage Corporation, Freddie Mac)与联邦国民抵押贷款协会(Fannie Mae, 简称：房利美)的决定或并不足以逆转新加坡股市的低迷局面。
海峡时报指数跌22.72点，收于2904.12点，跌幅0.8%。
该股指30只成分股中，24只收盘走低，3只收盘走高，3只收盘持平。
整体市场，361只股票下跌，153只股票上涨。
市场交投清淡，只有10亿股换手，上周五成交13亿股。
一些交易员称，投资者不愿买进，因他们正等待美国股市对美国政府公告的反应。
某当地交易员称，因油价高企和经济增长放缓持续拖累市场人气，美国政府拯救抵押贷款商联邦住房贷款抵押公司(Federal Home Loan Mortage Corporation, Freddie Mac)与联邦国民抵押贷款协会(Fannie Mae, 简称：房利美)的决定或并不足以逆转新加坡股市的低迷局面。
海峡时报指数跌22.72点，收于2904.12点，跌幅0.8%。
该股指30只成分股中，24只收盘走低，3只收盘走高，3只收盘持平。
整体市场，361只股票下跌，153只股票上涨。
市场交投清淡，只有10亿股换手，上周五成交13亿股。
一些交易员称，投资者不愿买进，因他们正等待美国股市对美国政府公告的反应。
Saturday, July 12, 2008
Good time to bet on Genting?
IT FEELS like a long time ago that Malaysia enjoyed a certain premium to its share valuations because of its political stability. In fact, the turning point was a fairly recent event — the general election on March 8.
Since then, our political landscape has changed significantly, and there is much to be played out before it can reach some form of equilibrium.
Hence, we have stocks gyrating wildly each time there is a major development involving politicians and parties. For the most part, however, the Composite Index has been heading south, indicating a preference to exit rather than an opportunity to buy.
Most of the blue chips haven’t been spared, including some that deserve better. Genting Bhd is an example.
It is a premier leisure and hospitality company that delivers stable earnings, is in a net cash position and has exposure to Singapore’s multibillion-dollar integrated resort development on Sentosa Island.
Yet, Genting’s share price is on a relentless down trend since March, hitting its 52-week low of RM5.15 on June 19. It has since recovered a little but is still about 30% down on a year-to-date basis.
Judging by a Bloomberg poll of recommendations, most analyst are still bullish on Genting, with 19 out of 26 analysts maintaining a “Buy” call. Six have a “Neutral” call and one has a “Trading Buy” call.
The target prices worked out by the research outfits mostly range from RM6.70 to RM11.70, which is well above the current market price.
“During the SARS (severe acute respiratory syndrome) outbreak, Genting was trading at a price earnings (PE) ratio of 13 times. At that time, leisure and hospitality accounted for two thirds of its operating profits,” says TA Securities gaming analyst James Ratnam.
“Today, its others businesses like power, oil and gas, and plantations are contributing close to 50% of its operating profits. Yet it is trading at 11x PE because of the global de-rating.” He has a RM6.95 target price for the stock.
The betting abates
Analysts say investors may have a few concerns regarding Genting’s prospects. For one, along with the global economic uncertainty, there has been a general de-rating on casino stocks as high rollers are expected to take a break with their bets.
A combination of competition, inflation and high borrowings have pushed global casino stocks to retrace by 40% to 60%.
As betting is considered a luxury, the hard times may see a drop in casino patrons as they opt to stash their cash.
Genting may also be affected by the knock-on effect of the sudden steep hike in petrol pump prices and weakening consumer sentiment. This is likely to result in a reduction in visitors to the Genting Highlands resort.
“Foreigners look at Genting as a gaming play. Casinos in Macau, Britain and Las Vegas aren’t doing too well, so the foreign investors assume Genting is also in the same boat,” says an analyst from RHB Research.
She explains that Genting’s target market is different from those of the other casinos. Genting depends more on the domestic market than on foreign tourists.
“Macau casinos, for instance, generate money mainly from the high rollers, while in Genting, high rollers only make up about 30% of total casino revenues. Genting’s casino players are mostly day trippers, people who just come up to enjoy the cool air for a day and do not bet a lot of money,” she says.
The cost overrun factor
Reason No. 2 that’s bogging down Genting’s share price is the worry about Genting International Plc’s (GIL) projected construction cost for its integrated resort in Singapore.
GIL, Genting’s 53.4% subsidiary, is building the integrated resort on Sentosa Island for up to S$6bil (RM14.3bil), which is about S$800mil, or 15%, above its initial budget of S$5.2bil due mainly to higher construction expenses.
The management has reiterated that they have managed to buy forward their raw materials, but investors remain wary. They wonder exactly how much Genting has managed to stock up.
“People are still cautious as to how much raw materials one can buy forward? This is especially when every other construction company has been affected by rising costs. So what makes GIL different?” asks an analyst from a local house.
The analyst from RHB Research says she would not be surprise if the budgeted cost increased further, given the cost overruns incurred for other large construction projects in the region, due to high raw material prices.
“It is quite difficult to buy a significant amount of raw material at forward rates. Furthermore, Genting has only subcontracted out about RM2bil of the RM6bil project cost of construction jobs. So it may not have bought forward enough, since it has only allocated a third of the work,” she says.
Ratnam says most of the company’s requirement for steel and cement has been locked in last year.
“Yes, it is quite likely that there will be a cost overrun above the RM6bil mentioned. If Genting needs to raise funds, it shouldn’t be a problem, considering its name and track record,” he says.
“Genting has already made provisions of RM250mil in its accounts. Besides, it also has S$300mil of credit standby facilities. So if there is a cost overrun, I think Genting has factored in that possibility and has also provided for it,” says the local analyst.
Higher gaming taxes?
Another share price dampener is the likelihood of an increase in gaming taxes when Budget 2009 is tabled in parliament next month.
At present, Malaysia’s gaming tax of 25% on gross gaming net win is already the second highest in Asia.
A higher tax structure will erode the competitiveness of the Genting Highlands casino, considering that Singapore is scheduled to open two casinos in 2010.
Genting is also unable to pass on this cost increase to consumers. Based on 2008 figures, a gaming analyst says a 1% tax increase will set the company back by RM41mil.
The analyst from RHB Research says there logically shouldn’t be a hike in gaming taxes as this will only increase illegal gambling and reduce government revenue in the longer term.
“However, given the government’s immediate need to raise money for its coffers, we would not be surprised if this were to happen, based on the precedent set by the recent implementation of windfall taxes,” she says.
A powerful catalyst
With Genting taking such a beating recently, this could be a good time to revisit the stock.
A possible catalyst that has been talked about for a while is Genting selling off its power assets, which analysts reckon are worth some RM4bil.
The power division, under Genting Power Holdings Ltd, has a net attributable generating capacity of about 1,450MW from its interests in seven power plants in Malaysia, China and India.
The power division is now the second largest contributor to Genting’s earnings. Management has always mentioned that over time, there are plans to concentrate more on their core business of gaming.
CIMB Research says the possible sale of the power assets, at the right price, will unlock more cash, which can either be returned to shareholders or be used for gaming expansion.
Genting has expanded its casino footprint into Britain, Singapore and the Philippines in the last one year.
Recently, Tenaga Nasional Bhd has written to Genting to officially indicate its interest in the latter’s power assets, but no formal proposal has been given to the gaming-based conglomerate yet.
Source
Since then, our political landscape has changed significantly, and there is much to be played out before it can reach some form of equilibrium.
Hence, we have stocks gyrating wildly each time there is a major development involving politicians and parties. For the most part, however, the Composite Index has been heading south, indicating a preference to exit rather than an opportunity to buy.
Most of the blue chips haven’t been spared, including some that deserve better. Genting Bhd is an example.
It is a premier leisure and hospitality company that delivers stable earnings, is in a net cash position and has exposure to Singapore’s multibillion-dollar integrated resort development on Sentosa Island.
Yet, Genting’s share price is on a relentless down trend since March, hitting its 52-week low of RM5.15 on June 19. It has since recovered a little but is still about 30% down on a year-to-date basis.
Judging by a Bloomberg poll of recommendations, most analyst are still bullish on Genting, with 19 out of 26 analysts maintaining a “Buy” call. Six have a “Neutral” call and one has a “Trading Buy” call.
The target prices worked out by the research outfits mostly range from RM6.70 to RM11.70, which is well above the current market price.
“During the SARS (severe acute respiratory syndrome) outbreak, Genting was trading at a price earnings (PE) ratio of 13 times. At that time, leisure and hospitality accounted for two thirds of its operating profits,” says TA Securities gaming analyst James Ratnam.
“Today, its others businesses like power, oil and gas, and plantations are contributing close to 50% of its operating profits. Yet it is trading at 11x PE because of the global de-rating.” He has a RM6.95 target price for the stock.
The betting abates
Analysts say investors may have a few concerns regarding Genting’s prospects. For one, along with the global economic uncertainty, there has been a general de-rating on casino stocks as high rollers are expected to take a break with their bets.
A combination of competition, inflation and high borrowings have pushed global casino stocks to retrace by 40% to 60%.
As betting is considered a luxury, the hard times may see a drop in casino patrons as they opt to stash their cash.
Genting may also be affected by the knock-on effect of the sudden steep hike in petrol pump prices and weakening consumer sentiment. This is likely to result in a reduction in visitors to the Genting Highlands resort.
“Foreigners look at Genting as a gaming play. Casinos in Macau, Britain and Las Vegas aren’t doing too well, so the foreign investors assume Genting is also in the same boat,” says an analyst from RHB Research.
She explains that Genting’s target market is different from those of the other casinos. Genting depends more on the domestic market than on foreign tourists.
“Macau casinos, for instance, generate money mainly from the high rollers, while in Genting, high rollers only make up about 30% of total casino revenues. Genting’s casino players are mostly day trippers, people who just come up to enjoy the cool air for a day and do not bet a lot of money,” she says.
The cost overrun factor
Reason No. 2 that’s bogging down Genting’s share price is the worry about Genting International Plc’s (GIL) projected construction cost for its integrated resort in Singapore.
GIL, Genting’s 53.4% subsidiary, is building the integrated resort on Sentosa Island for up to S$6bil (RM14.3bil), which is about S$800mil, or 15%, above its initial budget of S$5.2bil due mainly to higher construction expenses.
The management has reiterated that they have managed to buy forward their raw materials, but investors remain wary. They wonder exactly how much Genting has managed to stock up.
“People are still cautious as to how much raw materials one can buy forward? This is especially when every other construction company has been affected by rising costs. So what makes GIL different?” asks an analyst from a local house.
The analyst from RHB Research says she would not be surprise if the budgeted cost increased further, given the cost overruns incurred for other large construction projects in the region, due to high raw material prices.
“It is quite difficult to buy a significant amount of raw material at forward rates. Furthermore, Genting has only subcontracted out about RM2bil of the RM6bil project cost of construction jobs. So it may not have bought forward enough, since it has only allocated a third of the work,” she says.
Ratnam says most of the company’s requirement for steel and cement has been locked in last year.
“Yes, it is quite likely that there will be a cost overrun above the RM6bil mentioned. If Genting needs to raise funds, it shouldn’t be a problem, considering its name and track record,” he says.
“Genting has already made provisions of RM250mil in its accounts. Besides, it also has S$300mil of credit standby facilities. So if there is a cost overrun, I think Genting has factored in that possibility and has also provided for it,” says the local analyst.
Higher gaming taxes?
Another share price dampener is the likelihood of an increase in gaming taxes when Budget 2009 is tabled in parliament next month.
At present, Malaysia’s gaming tax of 25% on gross gaming net win is already the second highest in Asia.
A higher tax structure will erode the competitiveness of the Genting Highlands casino, considering that Singapore is scheduled to open two casinos in 2010.
Genting is also unable to pass on this cost increase to consumers. Based on 2008 figures, a gaming analyst says a 1% tax increase will set the company back by RM41mil.
The analyst from RHB Research says there logically shouldn’t be a hike in gaming taxes as this will only increase illegal gambling and reduce government revenue in the longer term.
“However, given the government’s immediate need to raise money for its coffers, we would not be surprised if this were to happen, based on the precedent set by the recent implementation of windfall taxes,” she says.
A powerful catalyst
With Genting taking such a beating recently, this could be a good time to revisit the stock.
A possible catalyst that has been talked about for a while is Genting selling off its power assets, which analysts reckon are worth some RM4bil.
The power division, under Genting Power Holdings Ltd, has a net attributable generating capacity of about 1,450MW from its interests in seven power plants in Malaysia, China and India.
The power division is now the second largest contributor to Genting’s earnings. Management has always mentioned that over time, there are plans to concentrate more on their core business of gaming.
CIMB Research says the possible sale of the power assets, at the right price, will unlock more cash, which can either be returned to shareholders or be used for gaming expansion.
Genting has expanded its casino footprint into Britain, Singapore and the Philippines in the last one year.
Recently, Tenaga Nasional Bhd has written to Genting to officially indicate its interest in the latter’s power assets, but no formal proposal has been given to the gaming-based conglomerate yet.
Source
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