- We have also excluded earnings from the Malaysian power division
but included cash from the disposal of the Genting Sanyen Power Plant in our
RNAV calculation.
- Genting Bhd’s 1HFY12 earnings were within our expectations
but below consensus estimates. Although GenS’ results were weak, this was
compensated by Genting Malaysia Bhd’s (GenM) good results.
- EBIT of the power division fell 20% YoY to RM266.9mil in 1HFY12
due to lower power generation at the Meizhouwan power plant. However on a QoQ
basis, power EBIT expanded 13% to RM141.6mil in 2QFY12 as Genting Bhd recognised
higher earnings from the Jangi wind farm in India. Jangi wind farm commenced
operations in December 2011.
- We understand that Genting Bhd would use part of the RM2.3bil
proceeds from the disposal of Genting Sanyen Power Plant to invest in its
existing business.
- Recall that the group plans to build a RM3.2bil coal-fired
power plant in West Java. The power plant, which would command a capacity of
660MW, is expected to start operations in FY17F.
- Genting Bhd also plans to continue with its exploration activities
at the Kasuri oil and gas block in Indonesia.
- We gather that the disposal of the Genting Sanyen Power Plant
is not a signal that Genting Bhd plans to exit the power business completely.
- The group has indicated that it would continue to focus on
overseas power assets. Currently, Genting Bhd has power assets in China and
India. Having said that, we gather that if the group were to receive an
attractive selling price for its power assets, then it would not be adverse
towards accepting the offer.
- In respect of overseas casino investments, we understand that
Genting Group prefers to own a controlling stake. However, if the jurisdiction
requires Genting Group to have a local partner, then the group would enter into
joint ventures.
Source: AmeSecurities
No comments:
Post a Comment