Focus on GITP
Malaysian casino operator Genting has issued US$644.28 million in debt notes as the company seeks more funds for development projects. In a filing, Genting announced that it issued medium-term notes through its unit Genting Malaysia Capital Bhd. The notes were issued in three tranches.
Proceeds will be used for operating expenses, capital expenditures, investment, refinancing, working capital requirements and general funding requirements as needed, the company stated. In Malaysia, Genting said that it remained focused on the on-going development of the Genting Integrated Tourism Plan. The 10-year master plan, undertaken in 2013, will revamp the company’s Resorts World Genting property, adding new hotels, a cable car, more retail space, new casino facilities and a 20th Century Fox theme park.
Asia Gaming Brief cited a research note from Nomura saying the company has “clear catalysts for further growth,” but added that investors may be looking for more clarity on the theme park opening before buying up shares. The entertainment complex is due to open before the end of the year, though the brokerage says that may be doubtful.
“We expect GENM’s next leg of growth to come from its capex in Malaysia, which should benefit from the expansion in capacity being undertaken by the group, funded by its monopoly in the Malaysian market, which is a growing cash cow for the company,” the research note said. “With the bulk of capacity expansion coming to an end, we think earnings should rebound in 2019.”
Nomura expects Malaysia revenue and EBITDA to grow 13 percent and 18 percent in 2018, and then grow 16 percent and 27 percent respectively in 2019. “We reiterate our Buy call, and GENM continues to be one of our top Buy ideas for Malaysia for 2018,” said the research team.
