Latest news with #RM42.1
Malaysian Reserve
3 days ago
- Business
- Malaysian Reserve
Genting's Empire Resorts unlocks RM2.2b, secures land ownership, and wipes out debt
GENTING Malaysia Bhd's (GENM) US subsidiary, Empire Resorts Inc, is making a major strategic move to strengthen its financial position and expand its landholdings in New York. Empire is set to sell its non-gaming assets including the 332-room Resorts World Catskills hotel, 99-room Alder Hotel, 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter, and multiple restaurants to Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (around RM2.2 billion). The cash from this sale will fund a series of strategic initiatives that reshape the company's operations. Proceeds from the sale will allow Empire to buy 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), securing ownership of the resort's existing gaming and non-gaming areas and additional land for future development. Empire will also use the funds to redeem its US$300 million (RM1.3 billion) 7.75% senior unsecured notes due in November 2026, leaving the company debt-free. Empire will continue to manage the sold non-gaming assets under a 20-year agreement with SCRFLDC, while the facilities will be operated as public benefit assets aimed at promoting employment and local development in Sullivan County. The proposal is expected to deliver several long-term benefits. Redeeming the bond strengthens Empire's balance sheet and frees it from interest obligations, while owning the land outright gives the company long-term control and flexibility. Eliminating lease payments and generating surplus cash of around US$10 million (RM42.1 million) improves working capital and cost efficiency. GENM said the initiative reinforces its commitment to expanding Empire's competitiveness in the New York gaming market and the broader northeastern US region. Empire and SCRFLDC are in the process of finalising agreements, with further details to be announced in due course. –TMR
The Sun
3 days ago
- Business
- The Sun
Genting Malaysia undertakes RM2.2 billion restructuring of US subsidiary Empire Resorts
KUALA LUMPUR: Genting Malaysia Bhd is undertaking a RM2.2 billion restructuring of its wholly owned US subsidiary, Empire Resorts Inc to strengthen its capital structure and sharpen its long-term strategic focus in the northeastern US gaming market. In a filing with Bursa Malaysia today, Genting Malaysia said Empire Resorts will dispose of its non-gaming assets – including Resorts World Catskills Hotel, Alder Hotel, Monster Golf Course, RWC Epicenter and various restaurants – to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (RM2.2 billion). Proceeds from the sale will be used to acquire 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), giving Empire Resorts full ownership of the land under both its gaming and non-gaming operations, along with additional development-ready land. The acquisition eliminates prior lease obligations, enabling Empire Resorts to better control its strategic assets. The disposal proceeds will also be used to fully redeem Empire Resorts' outstanding US$300 million senior unsecured notes due November 2026. This early redemption will leave Empire Resorts debt-free and significantly improve its financial position by eliminating high-interest payments. Following the asset sale, Empire Resortswill lease back the non-gaming properties from SCRFLDC under a long-term land lease running through 2066, ensuring continued operational control. Additionally, Empire Resorts will manage these assets under a 20-year agreement with SCRFLDC, with automatic renewals of up to 10 more years. The restructuring is expected to improve Empire Resorts' cost structure by removing lease payments to EPR and reducing interest expenses, while generating a surplus of about US$10 million (RM42.1 million) to support working capital. Genting Malaysia said this strategic realignment enhances Empire Resorts' financial flexibility and asset base, reinforcing its competitiveness in the New York State gaming sector. The group added that Empire Resorts and SCRFLDC are currently finalising the detailed terms of the agreements. This marks a key milestone in Genting Malaysia's ongoing efforts to streamline its international operations and maximise long-term shareholder value.
Malaysian Reserve
5 days ago
- Business
- Malaysian Reserve
Synergy House swings to profit in 2Q, B2C segment shows resilience
SYNERGY House Bhd posted a net profit of RM1.04 million for the second quarter ended June 30, 2025 (2Q25), reversing a net loss of RM4.76 million in the same quarter last year. The improvement was driven by stronger performance in its business-to-consumer (B2C) segment, effective cost management, and the absence of a one-off doubtful debt provision recorded a year ago. Revenue came in at RM69 million, down 10.9% year-on-year, mainly due to weaker contributions from the business-to-business (B2B) segment in the UK, partially offset by growth in the US. The B2C segment grew 0.6% to RM42.1 million, supported by higher UK sales, while B2B revenue fell 24.3% to RM26.9 million. Despite headwinds from unfavourable exchange rates and foreign exchange losses of RM2 million, the group maintained profitability through cost optimisation, lower advertising expenses, and operational streamlining. As at June 30, 2025, Synergy had shareholders' funds of RM127.2 million, a net gearing ratio of 0.04 times, and cash, bank balances, and short-term investments totalling RM45.7 million. Its ED Tan Eu Tah said the group remains focused on expanding its B2C segment through technology-led initiatives, selective market entries, and strategic partnerships such as Wayfair. Fellow ED Teh Yee Luen added that artificial intelligence, robotic process automation, and market intelligence tools will be key to driving scalability, efficiency, and long-term value creation. — TMR
New Straits Times
19-06-2025
- Business
- New Straits Times
Hong Leong poised to benefit from China associate's share price rally
KUALA LUMPUR: Hong Leong Bank Bhd is set to attract renewed investor interest following the strong performance of its China associate, Bank of Chengdu Co Ltd, whose share price recently surged to a record high despite geopolitical challenges. In a research note, CIMB Securities said Bank of Chengdu's stock hit RMB19.57, up 21.7 per cent from its February low, as market sentiment improved after the finalisation of United States tariffs on China. Hong Leong Bank holds a 17.8 per cent stake in Bank of Chengdu, which remains a key contributor to its earnings. "The risk-reward trade-off for Hong Leong is now tilted to the upside," CIMB Securities said, upgrading its rating on the stock to "buy" from "hold" and raising the target price to RM21.50 from RM21.40. The firm noted that Bank of Chengdu's improving outlook and consensus expectations for a 4.2 per cent year-on-year rise in pre-tax profit for financial year 2026 (FY26) contrast with its earlier conservative estimate of a 5.8 per cent decline. Aligning projections with market consensus could imply a potential target price of RM24.10 for Hong Leong, it said. Despite Bank of Chengdu's positive momentum, Hong Leong's own market capitalisation declined 9.3 per cent to RM42.1 billion since February, partly due to a one-off dilution loss of RM408 million. Of this, RM393 million was linked to the conversion of Bank of Chengdu's convertible bonds. "Hong Leong confirmed that this is a one-off loss," CIMB Securities said, adding that the dilution was caused by Bank of Chengdu's bondholders converting at a lower price, compared with Hong Leong's earlier and more favourable conversion. Bank of Chengdu's contribution to Hong Leong's group pre-tax profit stood at 25.7 per cent in the March quarter, maintaining its critical role in Hong Leong's earnings base. The Chengdu-based lender reported a robust return on equity of 14.8 per cent, with loans and deposits rising 17 per cent and 15 per cent year-on-year, respectively. Asset quality at Bank of Chengdu also remained solid, with a gross impaired loans ratio of just 0.66 per cent and loan loss coverage at 456 per cent. CIMB Securities noted that only six to seven per cent of Bank of Chengdu's loans are linked to the manufacturing sector and are largely domestically focused, making the impact of US tariffs manageable. Meanwhile, Hong Leong's asset quality continued to outperform industry standards. Its gross impaired loans ratio stood at 0.57 per cent as at March, lower than the banking industry's 1.42 per cent. Hong Leong's loan loss coverage dropped to 95 per cent in the third quarter of 2025 from 139 per cent in the previous quarter due to a RM399 million write-back of pre-emptive provisioning. Despite this, the firm said it remains "not overly concerned" as about half of the impaired loans are backed by strong property collateral and the remainder is covered by provisioning at 1.8 times. "Looking ahead, we expect Hong Leong to rebuild its loan loss cover in the coming quarters, consistent with its traditionally conservative credit culture," it said. CIMB Securities also raised its dividend payout forecasts for Hong Leong, projecting yields of 4.5 per cent for FY26 and 5.1 per cent for FY27, driven by improved capital ratios under Basel III. The dividend per share is expected to rise to 88 sen in FY26 and 99 sen in FY27, from 71 sen previously. Key catalysts for Hong Leong include its stable asset quality and higher dividend payouts, while downside risks include potential spikes in credit costs and elevated funding costs. Shares of Hong Leong last traded at RM19.40 apiece, valuing the lender at RM42.05 billion.
