Towards Financial Freedom
Genting Singapore - Implications of MBS' 1QFY14 results HOLD
- Maintain HOLD on Genting Singapore PLC (GenS) with an unchanged fair value of S$1.50/share. GenS is currently trading at an FY14F PE of 30.3x and an FY15F PE of 28.4x.
- Las Vegas Sands Corporation (LVS) released its 1QFY14 results yesterday. Its subsidiary, Marina Bay Sands (MBS) reported an EBITDA of US$435.2mil on the back of revenues of US$835.4mil in 1QFY14.
- MBS' results indicated that VIP business in Singapore is still weak while mass market is resilient. Hotel occupancy rates remain high and as such, average daily rates at MBS could continue to increase.
- We believe that the uncertain macro picture in China would continue to exert pressure on the high-rollers business in Singapore. Most of the VIP players in Singapore are from China.
- MBS' casino turnover rose 36.9% QoQ and 9.0% YoY to US$680.4mil in 1QFY14 due to a higher win percentage in the VIP segment.
- In terms of volume of business, 1QFY14 is the fourth consecutive quarterly decline in the VIP segment.
- Volume of VIP business contracted 5.7% QoQ and 28.9% YoY to US$12.9bil in 1QFY14. Win percentage of the VIP segment rose from 1.92% in 4QFY13 to 3.41% in 1QFY14.
- Win percentage was 2.51% in 1QFY13. The win percentage in the VIP segment is usually 2.7% to 3.0%. l As for the mass market segment, volume played inched up 1.9% from US$1.14bil in 4QFY13 to US$1.16bil in 1QFY14. Win percentage of the segment was 23.4% in 1QFY14 compared with 24.5% in 4QFY13 and 23.2% in 1QFY13.
- Provisions for receivables remained stable at US$36mil in 1QFY14, which was the same as 4QFY13 but slightly lower than US$39mil in 1QFY13. As at end-March 2014, MBS' trade receivables stood at US$1.07bil.
- Average daily rate (ADR) at the hotel continued to rise underpinned by a tight occupancy rate of 99.3%. ADR was US$425 in 1QFY14 compared with US$411 in 4QFY13 and US$372 in 1QFY13.
Source: AmeSecurities
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
