23 August 2011

Genting Singapore - Up or Down?

Some friends were asking me about the Genting Singapore. Some data that I copied from elsewhere:

Market Price: SGD1.50

2nd Quarter Result (SGD '000):

Revenue: 728,725
Net Earning: 243,198
Dividend: Nil
Total Debt to Asset Ratio: 45.23%
EPS for 1H 2011: 4.5c

With the above result, hence we will not foresee there is any dividend distributed to the shareholders as they require cash flow to repay debt as well as to maintain a good debt level to avoid any increase of loan interest payable to the banks.

If we annualized the 1H result (becomes 9c), then the P/E for this year is about 1.50 / 0.09 = 16.7

I believe the above P/E is comparable to its peers, the problem now is whether Genting Singapore can maintain its growing pace to achieve a lower P/E in future. However, I believe with so many years experience in managing Casinos and Recreation business, it is just a time for Genting Singapore to grow to another level. Let us wait and see what Management will do to achieve higher growth in revenue as well as the earnings.






3 comments:

  1. Hi Jack,

    Im a newbie in investing stocks. Need a piece of advice from you. Do you think now is time to invest in Singapore Genting?

    Appreciate your advice..

    ReplyDelete
  2. Hi,
    Sorry to reply you late.
    In my opinion, Genting SG has a good futures in next 20-30 years as Singapore enjoys stable political system, open economic system as well as its strategic location as a regional financial hub. I believe that more and more Europe companies will be opening its branches here, and hence attract more people to come to SG for a trip. You could buy it when the shares price dropped significantly and hold it until the price moves beyond instrinsic value.

    ReplyDelete
  3. Thanks Jack. Market is still volatile and heard that there will be another major recession coming soon. What you say? Anyway, am thinking to buy next week..Hope is going to be a good catch..:-)

    ReplyDelete

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