KUALA LUMPUR :
- Maybank Kim Eng said Genting Singapore Plc’s fourth quarter to Dec 31, 2015 financial results was within its expectations and maintains a “hold” call and target price of 78 Singapore cents.
- “Fourth quarter 2015 results were within our expectations. While the final dividend per share of 1.5 cents was 50% higher than our estimate, the dividend yield remains lukewarm at 2.1%. Fourth quarter VIP volumes continue to ease, but to be fair, we note that the fourth quarter provision for doubtful debts was an intra-year low.
- “More importantly, the high margin mass market remains resilient. Genting Singapore also disposed substantially all of its portfolio investments that generated exceptional losses in the past,” Maybank Kim Eng said.
- For the fourth quarter ended Dec 31, Genting Singapore posted S$21.96mil in net profit, 82% down from S$118.81mil in the previous corresponding period. Revenue for the quarter fell 14% to S$547.4mil from S$637.87mil previously.
- Genting Singapore, which is 53%-owned by Genting Bhd, said its net profit fell 70% to S$193.06mil for the financial year ended Dec 31, 2015 (FY15) from S$635.21mil a year ago. Revenue for the year fell 16% to S$2.4bil from S$2.86bil in FY14.
- Maybank Kim Eng said Genting Singapore reported a fourth quarter net loss of S$7.8mil due to S$70.2mil in exceptional losses. That said, fourth quarter FY15 core net profit of S$62.5mil brought 2015 core net profit to S$267.6mil, which was within expectations at 92% of Maybank’s full year estimate.