Facts and Figures on GenT/GenM

One of my Forum post:

“If not busy during the coming CNY, will share some info after going through the last Quarter of both GenT and GenM..

So far found out GenM is cash and cash equivalents rich in the tune of RM3.5169 Billion over long term borrowings of RM11.388 Billion. Look worrying? Not really as long term/non-current assets of RM22.507 Billion is twice the borrowings..so is GenT, with cash and cash equivalents rich in the tune of RM22.252 Billion over long term borrowings of RM34.132 Billion and long term/non-current assets of RM71.847 Billion.

There is more info which needs further digestion like how much borrowings in USD by the JV partners, how much profits in USD to cover USD loan, etc etc…so Happy Trading and TradeAtYourOwnRisk” and keep me ponder how true is below statement:

“...Once GenT forex losses exceed RM40 Billion with change of Govt, GenT will trade at RM0.02 just before delisting and liquidation…”

Above statement by one i3 Forumer; is that possible?

My search start From Genting Official Website: www.genting.com

“Today, the Genting Group comprises Genting Berhad and its listed companies; Genting Malaysia Berhad (“Genting Malaysia”), Genting Plantations Berhad (“Genting Plantations”) and Genting Singapore Limited (“Genting Singapore”), as well as its principal unlisted subsidiaries Genting Energy Limited (“Genting Energy”) and Resorts World Las Vegas LLC (“Resorts World Las Vegas”).”

Let's put the facts and figures for a more concrete evaluation:

 Are GenT/GenM assets solely in Malaysia? The answer is No. The facts are GenT/GenM is an international Conglomerate with businesses in:-

1) Genting Singapore Limited's (SGX:G13) RWS; 53% of the company is held by a single shareholder (Genting Berhad) Source: Yahoo Finance

It seems RWS is not under GenM which I initially thought.

2) Resorts World Las Vegas LLC (“Resorts World Las Vegas”) “opened on June 24 2021 costing a grand total of USD4.3 billion. To date it's the most expensive resort property ever built in Las Vegas.” In terms of RM, at the current exchange rate, it is easily worth more than the reported borrowing of RM11.388 Billion (GenM) and half of RM34.132 Billion (GenT).

3) “Genting Malaysia owns and operates major properties including Resorts World Genting in Malaysia, Resorts World Casino New York City in the US, over 40 casinos including Resorts World Birmingham in the UK and Resorts World Bimini in the Bahamas.”, therefore what is the possibilities of “change of Govt, GenT will trade at RM0.02 just before delisting and liquidation…”?

4) Now look at 3Q24 Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) from all these Resort World (GenM only) contribution on three Global location i.e. Malaysia of RM493.4 million, United Kingdom (UK) and Egypt of RM104.0 million and United States of America (US) and the Bahamas of RM124.2 million. From the above figures, 70% of EBITDA derive locally. Therefore currency gain/loss will have a very small effect on the bottom line (GenM).

5) For GenT, foreign Revenue (Leisure and Hospitality) is more than locally as RWS Revenue alone of RM1.888 Billion more than Malaysia Revenue of RM1.679 Billion. How can “GenT will trade at RM0.02 just before delisting and liquidation…”??

6) The borrowings of GenM in RM and USD is RM4.795 Billion vs USD1.612 Billion (RM6.746B conversion rate as in report); mainly long term and unsecured. Since unsecured, believed mainly not through institutions…low chances of being recalled.

7) The borrowings of GenT in various currencies are RM10.2 Billion vs USD6.418 Billion (RM26.432B conversion rate as in report) vs INR1.762B vs GBP0.052; mainly long term and unsecured. Since unsecured, believed mainly not through institutions…low chances of being recalled.

There are more details in the link below for further analysis:-

“For more information, visit http://www.gentingmalaysia.com or contact ir.genm@genting.com.

 For information on the major properties of Genting Malaysia

Resorts World Genting, visit www.rwgenting.com

Genting Casinos UK Limited, visit www.gentingcasinos.co.uk

Resorts World New York City, visit www.rwnewyork.com

Resorts World Catskills, visit www.rwcatskills.com

Resorts World Hudson Valley, visit www.rwhudsonvalleyny.com/

Resorts World Birmingham, visit www.resortsworldbirmingham.co.uk Resorts World Bimini, visit www.rwbimini.com “

Figure 1: 3Q24 and 9M24 GenM Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA)

Figure 2: 3Q24 GenM Borrowings in RM and USD

Figure 3: 3Q24 and 9M24 GenT Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA)

Figure 4: 3Q24 GenT Borrowings in RM and USD

Figure 5: 3Q24 GenM Fundamental

Figure 6: 3Q24 GenT Fundamental

Why do I trade/invest in GenM and not GenT? It is not GenM fundamentally better than GenT; mainly the entry price is lower. If not because of price, GenT Price/NTA ratio is very attractive compared with GenM.

Disclaimer: This is NOT a buy, hold or sell recommendation. Happy Trading and TradeAtYourOwnRisk