Period 1Q12 for Genting Singapore PLC (GENS)
Actual vs. Expectations
1Q12 EBITDA of
SGD364.7m came in broadly within our expectations and accounted for 21% of our
full-year estimate. (20% of market consensus)
1Q12 net profit of
SGD211.5m accounted for 20% of the market consensus’ full year estimate.
Dividends No dividend was declared as expected.
Key Results Highlights
1Q12 net profit
contracted 18% QoQ on luck factor and plunged 31% YoY on lower business volume.
Rolling chip win dipped to 3.4% vs. 3.9% in 4Q11 but was higher than that of
2.9% in 1Q11.
Market share for
rolling chip volume continued to be on the uptrend QoQ (49% from 47%) but still
lower than a year ago (59%).
Daily average visits
to the theme park dropped QoQ to 8,400 from 10,250 in 4Q11 due to seasonal
factors but up from 7,400 a year ago.
APRU expanded QoQ to
SGD88 vs. SGD86 in 4Q11 but remained unchanged YoY.
Hotel occupancy
reduced QoQ to 86% from 89% on new room inventory but was higher than that of
79% in 1Q11.
Average hotel room
rate rose to SGD338 from SGD322 in 4Q11 and SGD280 in 1Q11.
Outlook Better
earnings ahead for GENS. Newly launched Equarius Hotel and Beach Villas in Feb
2012 should boast earnings, and the entire resort will be fully completed in
2012. In addition, the recent approved Junkets should help to improve its
business volume.
Change to Forecasts
No changes to our
FY12-FY13 EBITDA estimates for GENS
Rating NOT RATED for GENS, OUTPERFORM for GENTING.
Valuation We are keeping our TP on GENTING unchanged at
RM12.57/share based on a 10% discount to its SOP pending GENTING results to be
released later this month.
Risks Risks
to GENS include weaker-than-expected 1) business volume and 2) luck factor.
Source: Kenanga
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