While reading the report below, somehow there is some excitement when the report mentioning the growth in 4 years (the estimated revenue grow from $3billion this year to $6 billion in 2013), a double grow in revenue in just 4 years !!! that represent a 25% growth on every year which i think is a healthy growth. Isn't it ?
Assuming below…..
1st year (2010) = USD$3b = S$4.25b
EPS = 4.25b/10.2b = 41.67sen
Take 5sen PE, the Fair value(FV) = 0.4167 X 5 = S$2.08
2nd year (2011) = S$4.25b X 25% = S$1.06b + S$4.25b = S$5.31b
EPS = 5.31b/10.2b = 52.06sen
FV = S$2.60
3rd year (2012) = S$5.65b + S$1.06b = S$6.71b (Note: for easy calculation just take 1.06b as 25% growth)
EPS = 6.71b/10.2b = 65.78sen
FV = S$3.28
4th year (2013) = S$6.71b + S$1.06b = S$7.77b
EPS = 7.77b/10.2b = 76.18sen
FV = S$3.80
Do you think Genting SP will work out in according to above perfection ??
Even if profit stagnant with S$4.25b a year, you still get a FV of S$2.08, worth buying ??
Latest news below :-
Singapore’s First Casino ‘Ready’ to Open, Awaits Gaming License
Jan. 18 (Bloomberg) -- Genting Singapore Plc is ready to start operating Singapore’s first legal casino as soon as the city state’s government issues its gaming license, the company said today.
Genting Singapore’s stock added as much as 4 percent this morning on speculation gambling may begin at the company’s Resorts World Sentosa complex as soon as February’s Chinese New Year holiday.
“We are ready,” Robin Goh, a spokesman for Resorts World, said. “We can open the casino as soon as we have the license.”
Four hotels and 10 restaurants within the $4.5 billion Sentosa island complex will begin accepting guests from Jan. 20. A Universal Studios theme park in the complex is also waiting for a license to operate, and will open as soon as that is issued, Goh said.
A second casino resort, the Marina Bay Sands, being built by Las Vegas Sands Corp., will open later after encountering construction delays. Singapore announced in April 2005 it was overturning a ban on casinos that had been in place since independence. Resorts World and Marina Bay are the only two casino developments approved so far.
“We believe they, Resorts World, will get their gaming license before Chinese New Year,” Aaron Fischer, a gaming analyst at CLSA Asia Pacific Markets in Hong Kong, said in a telephone interview. “We expect gaming revenues to be bigger. There is a huge gaming market in Southeast Asia.”
In a report published last month, CLSA Asia Pacific Markets said it estimates Resorts World’s gaming revenue to rise from $2.5 billion this year to $3.8 billion by 2013. The Singapore casino market will generate $3 billion in revenue this year, growing to $6 billion in 2013, CLSA said in the report.
Genting Singapore gained 3.2 percent to S$1.29 as of 2:30 p.m. in Singapore. The stock climbed 200 percent in the past year, compared with a 67 percent gain for the benchmark Straits Times Index.
10 comments:
hng,
Im still keeping some Lonbisc for its dividend.
PBB will likely announce it 4Q result this week. Hope is a good one. :)
Your approach this year seem very "safe", banking all on REITs which i think is very defensive and rewarding in term of div yield.
Good trade & laughing all d way to Bank...mate. :)
wat do u think of GENM... how much holdings they had in genting sp? GENM not moving at all... hovering between 2.70-3.00 for very long time liao...
horse
Your PBbank nearly touch RM12 mark, at 11.98 and your Lonbisc continue upward, well done!
You're right, current holding on REITs is defensive and aim for catalyst of income distribution. The key to profit rely to volume. Needless to worry even leverage up to ultramax margin line as every 1 sen movement = few thousands profit :D)
Congrat, your PBbank already surpass RM12 mark, at 12.02...
Wedding Gifts,
GENM has been underperformed & it current valuation stood abt 13X PE which is far from 17X PE. I believe soon they will do a catch up. Strong cash flow & stable earning, i hope for a special div coming Feb 2010 since they got ton of cash but usually a fat hope. :(
Many avoiding this guy as there is competitive risk from Resorts Singapore where business might be affected.
Secondly, is the RPTs recently where Genting try to get cash out from GENM.
Thirdly, is the long waited special div never come to reality to unlock cash reserves that cause many disappointment including me. :(
Anyway im still keeping & hope for a turn around.
hng,
yea, PBB registered a record high of RM12.02, likely to announce good div tomorrow. :)
Will still keeping it.
hng,
another great call from u, Ptaras. 10% up already.
Normally Ptaras is very quiet stocks, but due to recent re-rating in constraction and property sector, these stock is trying to catch up. Wish to have some now, but ... :(
No trading today, portfolio remain unchanged
REITs stocks
1. UOAREITs 100%
2. BsdREITS 73%
3. Quillcapital 40%
4. TowerREITs 25%
Trading stock
1. IGB 8.5%
Sold some of GENM at 2.93.
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