Latest news with #RM6.5bil
The Star
6 hours ago
- Business
- The Star
Yinson rises on news of Stonepeak's potential buyout offer
KUALA LUMPUR: Shares of Yinson Holdings Bhd continued to rise in early trade Monday following news of a potential buyout, drawing sustained interest from investors. The oil and gas services firm climbed two sen to RM2.36, with 10.14 million shares traded as of 10.52 am. Year-to-date, the stock has declined about 9%. New York-based Stonepeak Partners is reportedly in exclusive talks for a buyout of Yinson, potentially valuing the firm at up to RM9bil (US$2.1bil), Bloomberg reported, quoting sources familiar with the matter. This could be one of the largest deals in Malaysia this year. ALSO READ: Stonepeak is said in exclusive talks for buyout of US$2.1bil Yinson CIMB Securities said that if the report is accurate, it could potentially lead to a privatisation offer for the remaining Yinson shares. It noted that the market responded positively, with Yinson's share price rising 13.8% on June 6 — its biggest gain since June 2019. The jump narrowed the stock's year-to-date loss from 33.7% to around 11.4%, lifting Yinson's market capitalisation to approximately RM6.5bil. "In our view, the exclusivity arrangement indicates that the deal has entered advanced stages of negotiation, with the Lim family, which is Yinson's founder, holding a 26.6% stake," it said. It added that the deal would also help Stonepeak expand its exposure in Asia Pacific energy infrastructure, where Yinson has already established a solid and growing footprint. CIMB noted that the implied valuation of about 9.5 times FY24 P/E, based on a RM9bil market capitalisation, is at a premium to the 8.2 times average FY24 P/E of Malaysia's leading independent floating production, storage, and offloading (FPSO) operators, SBM Offshore and Modec, which currently trade at P/Es of 4.8 and 11.6 times, respectively. 'In our view, this valuation appears justifiable, underpinned by Yinson's robust project backlog of US$20.5bil and its active portfolio of 8 FPSO contracts. Yinson's growing presence in emerging markets further supports this premium, positioning it for long-term structural growth. 'Furthermore, Stonepeak is expected to price in the strategic value of Yinson's expansion in FPSO contracts, particularly following Yinson's proactive steps to strengthen its financial capacity, including securing US$1bn in funding for its FPSO unit in Jan 2025 from a consortium of institutional investors; and growth in energy transition segments, including its solar and battery storage initiatives,' the research house said. CIMB has reaffirmed its FY26–28F EPS forecasts, buy rating, and sum-of-parts target price of RM2.93.
The Star
6 days ago
- Business
- The Star
Rising number of tourists to lift Genting's earnings
PETALING JAYA: As Genting Bhd began its new financial year with a disappointment amid lacklustre performances from all its gaming units, analysts have downgraded their earnings projections for the stock. Nevertheless, the market remains bullish on the conglomerate, with the majority of analysts keeping a 'buy' call. In fact, UOB Kay Hian Research (UOBKH Research) upgraded its rating to 'buy' after Genting's results announcement on May 29. Genting, which dropped off the FBM KLCI list last December, saw lower than-expected contributions from gaming operations in Singapore, Malaysia, Britain and the United States in the first quarter of the year (1Q25). Despite higher contributions from the plantations and power businesses, Genting's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped 22.7% year-on-year (y-o-y) to RM2bil with revenue dropping 12.4% y-o-y to RM6.5bil. Following this, TA Research cut its earnings for this year (FY25) by 47% and 68% for FY26. This was done after revising lower the earnings forecasts for Genting Singapore Ltd and Resorts World Las Vegas, as well as incorporating Genting Malaysia Bhd 's (GenM) revised earnings projections. UOBKH Research, on the other hand, believes GenM's profitability remains intact. However, it said it thinks that unfavourable capital management, a potential capital expenditure upcycle that may pressure gearing, and finance costs may result in longer period of valuations de-rating. 'Key re-rating catalysts include winning another New York casino tender. With the share price correcting 19% year-to-date, valuations appear depressed below the mean with a palatable 5.5% to 7% dividend yield,' the research house said. Hong Leong Investment Bank Research (HLIB Research) said it has cut its earnings forecast for Genting by 26% for FY25 and 27.6% for FY26. HLIB Research, which is one of the research houses that has cut its target price for the Genting, continues to like Genting for its well-established operational presence across diverse regions, mitigating regulatory and geographical risks. Going forward, it expects Genting to benefit from the stronger tourist arrivals in both Singapore and Malaysia. 'Besides, Genting has the potential value-add with its stake in TauRx Pharmaceutical Ltd in Scotland if its drug, hydromethylthionine mesylate (HMTM) receives US Food and Drug Administration approval.' Genting has a 20.3% stake in the pharmaceutical company. On GenM, Kenanga Research expects the company to see 'better days beyond FY25'. It said Resorts World Genting is seeing more local visitors, along with Singaporeans and Indonesians. Mainland Chinese and Indian tourists are also expected to increase as Malaysia builds up momentum towards welcoming 36 million visitors in Visit Malaysia 2026. 'The Ebitda margin is expected to improve marginally and gradually from current 26% towards 27% to 25% over FY25 to FY26 on improving visitor numbers. 'GenM's US operations should see softer but still firm earnings from Resorts World New York City on rising risk of slower local economic growth coupled with full consolidation of still loss-making Empire Resorts Inc. 'The group's British and Egypt operations are also expected to report firm earnings with rising risk of some softening,' added Kenanga Research.
The Star
29-05-2025
- Business
- The Star
Genting's 1Q25 revenue drops to RM6.5bil
The company said it will also include new ecotourism experiences at Genting Highlands. PETALING JAYA: Genting Bhd will introduce new facilities and attractions in an attempt to enhance Resorts World Genting's (RWG) stature as a regional tourism hub. In a filing with Bursa Malaysia, the company that mainly operates in the resorts industry said it will also include new ecotourism experiences at Genting Highlands. 'We will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,' it said. For the first quarter of this year (1Q25) Genting's revenue dropped to RM6.5bil from RM7.4bil in the previous corresponding period, while net profit fell to RM4.5mil from RM588.87mil a year earlier. The decrease was due to its leisure and hospitality segment, as well as the strengthening of the ringgit against the Singapore dollar, US dollar and British pound. Within Malaysia, RWG contributed lower revenue in the quarter under review on the back of the timing of the festive season this year and lower business volumes in the premium-players segment. In Singapore, Resorts World Sentosa registered lower revenue due to a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovations and rebranding work. As for its plantation segment, revenue and earnings before interest, taxes, depreciation and amortisation were higher for the quarter mainly attributable to higher palm product prices and improved sales volume for the downstream manufacturing segment. 'Palm oil prices have since eased, driven by the seasonal recovery in production and the expected buildup in palm oil stocks,' the group noted. Moving forward, the group said it will continue to be cautiously optimistic about the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term. As for its UK market, the recent acquisition of Aspers Stratford in London is expected to strengthen its foothold in the city's casino market. In the United States, it will solidify its position as a market leader in the increasingly competitive New York State gaming sector. Additionally, in the Bahamas, it will drive visitation at RW Bimini by expanding its cruise strategy, which includes increasing port calls from international operators and intensifying marketing and promotional efforts. Meanwhile, the group's subsidiary Genting Malaysia Bhd (GenM) similarly saw a decrease in its revenue for 1Q25 at RM2.6bil compared to RM2.76bil in the same quarter last year. The group said revenue from Malaysia, the United Kingdom, Egypt, the United States and Bahamas's leisure and hospitality business saw a lower topline for the quarter under review. In Malaysia, a 7% decline in revenue was recorded, reflecting an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment. Its net profit however was higher at RM72.58mil compared to RM57.78mil recorded in the same quarter last year. 'The US dollar denominated borrowings gave rise to a net unrealised foreign exchange translation gain of RM50.4mil in 1Q25 compared with net unrealised foreign exchange translation losses of RM130mil in 1Q24,' it said.
The Star
29-05-2025
- Business
- The Star
Genting to introduce new facilities and attractions at Resorts World Genting
PETALING JAYA: Genting Bhd will introduce new facilities and attractions in an attempt to enhance Resorts World Genting's (RWG) stature as a regional tourism hub. In a filing to Bursa Malaysia, the company that mainly operates in the resorts industry said it will also include new ecotourism experiences at Genting Highlands. 'We will continue to place emphasis on driving key business segments by improving yield management systems, operational efficiencies and service delivery, while adopting prudent cost management and an agile approach to navigate the increasingly challenging operating environment,' it said. For the first quarter ended March 31, 2025 (1Q2025) Genting's revenue dropped to RM6.5bil from RM7.4bil in the previous corresponding period, while net profit fell to RM4.5mil from RM588.87mil a year earlier. The decrease was due to its leisure and hospitality segment, as well as the strengthening of the ringgit against the Singapore dollar, US dollar and British pounds. Within Malaysia, its RWG contributed lower revenue in the quarter under review on the back of timing of the festive season and lower business volumes in the premium players segment. In Singapore, Resorts World Sentosa registered a lower revenue due to a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovations and rebranding works. As for its plantation segment, revenue and earnings before interest, taxes, depreciation, and amortisation were higher for this quarter mainly attributable to higher palm product prices and improved sales volume at the downstream manufacturing segment. 'Palm oil prices have since eased, driven by the seasonal recovery in production and the expected buildup in palm oil stocks,' the group noted. Moving forward, the group said it will continue to be cautiously optimistic of the near-term prospects of the leisure and hospitality industry and remains positive in the longer-term. As for its UK market, the recent acquisition of Aspers Stratford in London is expected to strengthen its foothold in the city's casino market. For the US, it will solidify its position as a market leader in the increasingly competitive New York State gaming sector. Additionally, in the Bahamas, it will drive visitation at RW Bimini by expanding its cruise strategy, which includes increasing port calls from international operators and intensifying marketing and promotional efforts. Meanwhile, the group's subsidiary Genting Malaysia Bhd (GENM) similarly saw a decrease in its revenue for 1Q2025 at RM2.6bil compared to RM2.76bil in the same quarter last year. The group said revenue from Malaysia, UK, Egypt, US and Bahamas's leisure and hospitality business saw a lesser topline for the quarter under review. In Malaysia, a 7% decline in revenue was recorded, reflecting an industry trend that is observed in similar markets in the immediate region, particularly in the premium players segment. Its net profit however was higher at RM72.58mil compared to RM57.78mil recorded in the same quarter last year. 'The US dollar denominated borrowings gave rise to a net unrealised foreign exchange translation gain of RM50.4mil in 1Q2025 compared with net unrealised foreign exchange translation losses of RM130mil in 1Q2024,' it said. Moving forward, GENM said recovery is anticipated to be uneven across regions, causing the regional gaming market to face some challenges.
