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My situation might be different compared to yours, Captain MY. I can afford to take some risks and wait for it as my avg is 2.45. After all, the dividend payout trends reflected mgmt's perspective - minimum 15 cents yearly. I am not expecting any special dividend in the event GenM successfully executed the Miami land sales plan due to ongoing RWNYC full casino license bidding.
You are welcome, tim foo :) It depends on individual plans when it comes to whether worth adding positions at this price. If you believes in its long term outlook and that it is undervalued, you can add it. Some will add-ons regularly regardless of the market price as long as its well below their tp. Some prefers to add-ons during uptrend. There is a margins of 15 cents from the yearly dividend which will generate cash flow for holding it. Personally for me - I prefer to add during panic sell not related to its fundamentals / during market corrections which is not related to the company. Another good opportunity to add is during the headwinds impact which is typically short term. Example: Q2'24 will probably see a lower earnings due to temporary closure of two facilities for renovations and the additional 2% sst impact that may hit a few percentage points on its margins. Maybe able to get good deals as market reacts to the results :) Just my opinions, could be wrong, hope it helps.
perhaps could be this, whack9e. personally, I think there won't be much impact to GenM due to (1) it is just a study and will take another 2 to 3 years before it becomes policies/acts/laws. thereafter, another few years for project kick off and completion. (2) competition wise - GenS could be affected by then due to higher # of China tourists visiting Thailand historically compared to Malaysia. Thai tourists visiting Singapore surged in 2023 too. Border casinos in Cambodia could be affected too.
+1, SKN. Been waiting for 2.60 for sometime. after all, we have no visibility of the impact of Q2'24 headwinds. It will be interesting to wait for it whether it will be above 700M ebitda or below. It will be strong if Q2'24 can still produce 700M ebitda.
yes, Tim Foo. Having said that, it is also important to observe the headwinds impact in Q2'24. The tailwinds timeline is towards the second half of the year and stretching towards early next year. Hence, the min 15 cents yearly dividend provides some margins for the upcoming volatility.
KUALA LUMPUR (April 1): Genting Malaysia Bhd’s Resorts World Genting is set to be the least impacted by the opening of legal Thailand casinos, as less than 20% of its gross gaming revenue (GGR) is derived from foreigners.
In a note on the gaming sector, Maybank Investment Bank (Maybank IB) said Thailand’s first economic corridors hosting legal casino gaming could open as early as 2029, with up to eight potential integrated casino resorts to be developed should a study passed last Thursday by the House of Representatives be given final approval by the cabinet.
The research house said the most likely location for legal Thai casinos is the Eastern Economic Corridor, with a development period of around five years, assuming one or more integrated resort bids were to be approved within this year.
Maybank IB said the opening of legal Thai casinos would have a significant impact on the regional gaming landscape, with Singapore’s integrated resorts and Cambodia’s NagaWorld to be the most impacted.
“We are more concerned for Genting Singapore’s Resorts World Sentosa (RWS), where we estimate that around 60% of GGR is derived from foreigners, and NagaCorp’s Naga 1 and 2, where almost all their GGR is derived from foreigners (only Cambodians who hold foreign passports can gamble in Cambodia).
“Yet, recall that many who had believed that Malaysian GGR would fall after the Singaporean integrated resorts opened in 2010 were proven wrong,” said the research house.
All is well, FB. I am not so sure about Genting though as Hard Rock Hotel has been taken down for RWS2.0 upgrades which means approx 380+ rooms have been taken down. The short term impact will be known when GenS reports its Q2'24 performance. Logically, the revenue will drop as # of available room goes down. GenM has its own fair share of headwinds in Q2'24 too. Therefore, expectation for Genting's performance in Q2'24 onwards should be lowered down.
Probably not Genting Malaysia, whack9e. Should be GenS instead as they were the contenders for the previous Yokohama integrated resort before decision change by the gomen to withdraw from the IR plan. Hence, GenS can be attractive for the long term despite the short term challenges - RWS2.0 plus the possibility of bidding for Thailand casino license/IR. Just my opinions, could be wrong. Hope it helps.
Been waiting for 2.60 since q4 last year :) Just executing per my initial plan. Maybe Mr. Market will provide lower quotation in coming days/weeks and will add if it is attractive enough. For me, the next attractive price would be 2.45/lower.
GenM's stake in Empire Resort is a love and hate story :) There is nothing much minority shareholders can do about it. I personally dislike it; particularly the move from Kien Huat Realty to GenM. As is, GenM's shareholding in Empire Resort is approaching 90% and no chance to increase further. Any attempt to transfer the remaining stakes from Kien Huat Realty to GenM will definitely raise eyebrow :) The bigger question is will GenM be successful in winning the bid for RWNYC given its existing contributions in US via RWNYC and Empire Resorts (Catskills and Hudson Valley). If it fails to win the bid, time to say goodbye to GenM.
unlikely, Tim Foo :) any further drop should be welcomed given the min 15 cents yearly dividend and tailwinds outweigh headwinds in the next 12 months.
manage it well until the next market panic opportunity as Q2'24 performance will be the one that reflects the headwinds - full quarter performance with 2 facilities shutdown for renovations impact on its revenue, 2% sst impact on its margins and higher shareholdings for Empire impact on its higher share of profit/losses. Q1'24 revenue for NYC and Hudson Valley looks really good while Catskills remained flattish; operational costs will be the deciding factors here again.
Cheng. Yes. Because need to take out capital first and not sure can materialize it since opposition is strong. Government can be changed anytime. Good luck
not so much on opposition or politics, Lionel. I personally don't think it's a good business model. If it is a GO project, it's cannibalisation of Resort World Sentosa's revenue and Genting Highlands revenue. Genting group stand to lose more than gains in my personal opinion, could be wrong :)
True, Eddy. I believe Genting Singapore will bid for it when the time comes :) Timing wise is just nice for Genting Singapore as RWS 2.0 will probably be completed in 5 years time and just in time to start Thailand's project if it is successful in the bidding; assuming all acts/regulations are in place by then.
Post Q2'24 will be volatile depending on the outcome, Tok Tiong. Can be upside or downside volatility:) Well, if Genting decided to participate in the Forest City, it will be immediately volatile towards the downside.
agreed with Vin, Michael. (1) Track records over the last two fiscal years showing GenM's intention of maintaining a minimum 15 cents yearly payout; 6 cents post Q2 and 9 cents post Q4. (2) Despite the headwinds in Q2'24, it is unlikely that the performance will be lower compared to Q2'22 and Q2'23.
I thought this year gaming stock started to move on... But seem like foreigner still focus on YTL, construction, property stock first..
Mistake... >. <
