|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.59
|
|
Target
Price:
|
MYR5.40
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Another setback
for tribal casino?
|
|
The Mashpee Wampanoag (MW) tribe unexpectedly withdrew its
request for Category 1 review. We are now uncertain if construction of
the First Light Resort & Casino (FLRC) can proceed. Recall that
GENM invested USD274m in MW promissory notes. Our current TP assumes
that they will not be written off yet. If construction of the FLRC is
not allowed to proceed, our TP could be trimmed by up to MYR0.20/sh. If
construction of the FLRC is allowed to proceed, our TP may get a
MYR0.14/sh lift.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
8,395.9
|
8,931.6
|
10,109.8
|
11,756.8
|
|
EBITDA
|
2,013.1
|
2,394.9
|
2,775.6
|
3,389.9
|
|
Core net profit
|
1,154.7
|
1,547.4
|
1,687.4
|
2,150.0
|
|
Core FDEPS (sen)
|
20.4
|
27.3
|
29.6
|
37.8
|
|
Core FDEPS growth(%)
|
(15.0)
|
34.0
|
8.6
|
27.4
|
|
Net DPS (sen)
|
7.1
|
16.5
|
10.0
|
11.7
|
|
Core FD P/E (x)
|
27.5
|
20.5
|
18.9
|
14.8
|
|
P/BV (x)
|
1.7
|
1.6
|
1.5
|
1.4
|
|
Net dividend yield (%)
|
1.3
|
3.0
|
1.8
|
2.1
|
|
ROAE (%)
|
7.1
|
14.8
|
8.3
|
9.9
|
|
ROAA (%)
|
4.8
|
5.6
|
5.8
|
6.8
|
|
EV/EBITDA (x)
|
12.3
|
10.5
|
11.1
|
8.9
|
|
Net debt/equity (%)
|
0.1
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.K: Carney sets stage for key August BOE meeting with
language shift. Just one week after he said it’s not yet time to increase
interest rates, Governor Mark Carney shifted his emphasis, saying that
policy makers may need to begin raising them and will debate it in the
coming months. His comments come after a fortnight of speculation over
the outlook for policy tightening, sparked by dissenting calls for a hike
by three of eight policy makers at their June meeting and a fourth
subsequently suggesting he might follow suit. “Some removal of monetary
stimulus is likely to become necessary if the trade-off facing the MPC
continues to lessen and the policy decision accordingly becomes more
conventional”. (Source: Bloomberg)
China: The government has shortened the list of assets
that foreign investors are barred from acquiring, in a move designed to
show the government is honoring its commitment to stay open for global
business. The world’s second largest economy has reduced restrictive
measures in its 2017 foreign investment catalog to 63, compared with 93
in the previous version in 2015, according to a joint statement released
by the National Development and Reform Committee and the Ministry of
Commerce. Policy makers have lifted bans on foreign investment in service
sectors including credit rating, accounting, auditing and produce
wholesale markets, and in high-end manufacturing businesses including new
energy vehicle batteries and ethanol fuel, according to the catalog,
which is set to take effect from July 28. (Source: Bloomberg)
Japan: Retail sales growth slows in sign of weaker
consumption. Japan’s retail sales growth slowed in May compared to last
year, signaling that consumers are still reluctant to open their wallets.
Retail sales rose 2% YoY in May after rising 3.2% YoY in the previous
month. Measured month-on-month, sales fell 1.6% MoM from April, when they
rose 1.4% MoM. (Source: Bloomberg)
S. Korea: July manufacturers’ confidence falls to 80 from
84 in June, according to Bank of Korea statement. Proportion of companies
surveyed complaining about weak domestic demand falls to 23.7% from 23.8%
in last survey. Confidence index for non-manufacturers for July falls to
76 from 80. Results based on survey conducted June 15-22, with responses
from 1,762 manufacturers and 1,120 non-manufacturers. Readings below 100
indicate that pessimists outnumber optimists. (Source: Bloomberg)
Crude Oil: Holds gains as U.S. crude production plunges
most in a year, easing pressure on the OPEC- led effort to drain a global
glut. U.S. output slid by 100,000 barrels a day last week, the most since
early July, according to Energy Information Administration data. The
production decline offset an unexpected increase in crude stockpiles.
Gasoline inventories fell a second week. Oil in New York and London
tumbled into a bear market last week on concerns that rising global
supply will counter output cuts from the Organization of Petroleum
Exporting Countries and its partners. U.S. crude inventories remain
stubbornly high and are more than 100 million barrels above the five-year
seasonal average. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Maxis: U Mobile ends network sharing deal with Maxis.
Maxis has received a termination letter from U Mobile in relation to the
Network Sharing and Alliance Agreement (NSA) dated Oct 21, 2011. The
termination will take place in stages over a period of 18 months with
completion on Dec 27, 2018. It is understood that U Mobile is not obliged
to compensate for terminating the NSA as company has an option to review
the NSA after five years from the agreement’s commencement date. The
tenure of the agreement is 10 years with an option to extend for another
two years
Sunsuria: Sunsuria, China's CITIC JV eye construction jobs
in Malaysia. Has signed a partnership with China’s CITIC Ltd to form a
49:51 joint venture company to undertake construction projects in Malaysia.
Under the JV, Sunsuria will be CITIC Construction’s sole partner for all
construction works in Malaysia. Among CITIC Construction’s major projects
include China’s iconic National Olympic Stadium (The Bird’s Nest), Royal
Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil
Caniota thermal power plant, Myanmar multifunctional diesel engine plant,
Belarus cement production lines, Uzbekistan potash fertiliser plant and
large-scale housing projects in Africa and Venezuela. (Source: The Star)
AirAsia X: Set on returning to Adelaide – Fernandes. AAX
looks firm on returning to Adelaide after pulling out of the market in
2015, according to a Facebook message by AirAsia Bhd CEO Tan Sri Tony
Fernandes. No specific time frame for its return has been cited. The
route was hived off after flying for about a year due to unprofitability.
(Source: The Edge Financial Daily)
Ikhmas Jaya: Bags MYR36m job to work on Phase 2 of Setia
City Mall. It has accepted the letter of award to carry out cite clearance,
earthworks, piling and piles caps, ground slab and ancillary works for
the project from Greenhill Resources Sdn Bhd. The contract works is
expected to commence on Aug 9,2017 and complete by April 11, 2018. Ikhmas
Jaya’s outstanding orderbook currently stands at MYR903.9m, of which
MYR369.2m was won YTD. (Source: The Edge Financial Daily)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.