My way of GENTING valuation:
1) Market price of GENS, GENM, GENP.
2) 50% of NAB for the rest unlisted assets, minus liabilities.

At End of Year 2017, I get GENTING fair value = 13.15, price was 9.20, Price / Value = 9.20 / 13.15 = 70%.

Now, I get GENTING fair value = 8.94, price is 4.71, Price / Value = 4.71 / 8.94 = 53%.

GENTING now is extremely CHEAP.

Comment provided by Copilot:

Certainly! Genting Berhad, a prominent Malaysian conglomerate, serves as an investment holding and management company. Founded in 1965 by the late Tan Sri Lim Goh Tong, the Genting Group embarked on a visionary journey to create a mountaintop resort in Malaysia. Let’s delve into the concept of Conglomerate Discount and its relevance to Genting Berhad.

Conglomerate Discount refers to a situation where the market values a diversified conglomerate at a lower price than the sum of its individual parts (i.e., the value of its subsidiary companies). Essentially, the conglomerate’s overall worth appears discounted due to its diverse business portfolio.

In the case of Genting Berhad, analysts at financial services group Nomura have observed significant market cap discounts. Here are the key points:

1）Market Cap Discount: Genting’s current market cap seems to discount all non-Singapore assets. It has been trading below the value of its 52% stake in Genting Singapore. Additionally, the market appears to disregard the value of other businesses under Genting, including listed subsidiaries (e.g., its 49% stake in Genting Malaysia and 55% stake in Genting Plantations) and unlisted businesses (such as Resorts World Las Vegas, energy, and utilities).

2）Estimated Contribution: These discounted, “free” businesses are estimated to contribute approximately 62% of Genting’s FY23F EBITDA.

3）Discount Levels:
Genting is trading at a 66% discount to the value of listed subsidiaries.
It is also trading at a 47% discount to the value of both listed and unlisted subsidiaries.

4）Unjustifiably Wide Discount: The holding company’s RNAV (Revalued Net Asset Value) discount is considered unjustifiably wide. Analysts believe this discount will narrow as macro risks ease and tourism recovery continues in FY23F/24F.

5）Upgraded Rating: Nomura has upgraded Genting Berhad to a “Buy” rating, raising revenue and EBITDA estimates for Genting Malaysia. Although profit estimates were adjusted due to higher depreciation and interest costs, the overall outlook remains positive.

In summary, while Genting Berhad faces the Conglomerate Discount phenomenon, analysts believe that the current discount is unwarranted and may narrow over time. As macroeconomic conditions improve and tourism rebounds, the market’s perception of Genting’s diversified assets could change.

Remember that investing decisions should consider various factors, including risk tolerance, financial goals, and market dynamics. Always seek professional financial advice before making investment choices.

If you understand and have confidence in that company, DY is not important at all.
But to people like the person who called me little boy and said I failed my Mathematics,
He pay much attention to DY, end up his investment in RHB is much more than his Maybank.
He would have made more money if he has invested equal amount in RHB and Maybank.

I view DRIP negatively.
1) If the company want to pay out 31.5 sen, let pay 31.5 sen Cash, no need to pay 30 sen Cash + 10 sen DRIP. DRIP serve no purpose except it is painting a fake picture of high DY.
2) DRIP come with a significant cost to the very small investors, stamp duty, service charge and odd lot etc.

For my own case, I own 100,000 units RHB before this round of dividend. I do not like odd lot, so I opted only 2,000 units, which make my DRIP take up rate of 97.6%, but it is still much higher than the average ~85% take up rate, the RM15.00 stamp duty and service charge by BoardRoom is very minimal for my 2,000 units DRIP, but for the very small investor, the cost of RM15 is big in term of percentage, better off to opt for Cash.

In investing, we must 以小人之心度君子之腹，
Whenever there is deal / transaction between Mother and Son,
It is always that Mother is at the advantage side, or the worst is both sides equal.
It is impossible for the Son to be at the advantage side.

I can not understand what more bright prospect GENTING need to show?
Investors already value GENS, GENM, and GENP prospects and their prices are the market consensus.

The only thing we do not know is consensus for GENTING other assets / businesses.
For other assets / businesses, it is still worth NAB = RM2.69,
If we think that this part of GENTING is hopeless, then assume it worthless.

Then GENTING fair value = Part A Market Value = 1.65*GENS's + 0.73*GENM's + 0.13*GENP's = RM7.64

From the number of shares, one single unit share of GENTING owns:
1) 1.65 share GENS
2) 0.73 share GENM
3) 0.13 share GENP

Divide GENTING into two parts:
Part A: GENS + GENM + GENP
Part B: Others

GENTING's NAB = RM8.98
Part A's NAB = 1.65*GENS's + 0.73*GENM's + 0.13*GENP's = RM6.29
Therefore Part B's NAB = 8.98 - 6.29 = RM2.69

Part A Market Value = 1.65*GENS's + 0.73*GENM's + 0.13*GENP's = RM7.64
For Part B, No clue, so look at its NAB, we can assume X% of its NAB, for me, X=50%,
Fair value of GENTING = 100% Part A market value + 50% Part B's NAB = RM8.99.

But many analysts think that Conglomerate Discount is applicable, which I do not agree.
GENTING hold about 50% and can instruct GENS / GENM / GENP go North East South West,
No reason at all why Conglomerate Discount is applicable.

Or he is just a small kid that bought Maybank share with the monthly allowance from his parent?

He called me little boy, he said I failed my mathematics.
So, most probably he is a mature adult, right?
But the funny thing is, he wrote somewhere that he never opted for Maybank DRIP because not worth it due to holding too small quantity.
So who is he? A very poor B40 old man?

Hahaha....prudentinvestor.....
Did I say ESOS No Good?
But the fact is it is negative Dividend.

1) ESOS is negative Dividend.
2) Private Placement is also negative Dividend.
3) Right Issue is also negative Dividend.

4) Share Buy Back:
4a) A positive Dividend at the time of buying.
4b) No effect when the company cancel the treasury shares.
4c) It is negative Dividend when the company sell the treasury shares back into the market.
4d) It is bonus units when company distribute treasury share as "share dividend".

I do not expect prudentinvestor can understand this.

observatory,
Yes. Share Buy Back is equivalent to Dividend Payment.

prudentinvestor，
A) Pay 31.5 sen cash dividend, Money out from the company = 31.5 sen / share.
B) Pay 40.0 sen dividend with DRIP, Money out from the company also = 31.5 sen / share.

The above both cases A and B, company pay out the same amount 31.5 sen / share,
But you choose to believe that the DY are different, 5.72% and 7.27%,
Halo, who is magician? The company or the shareholder?

prudentinvestor,
I already told you, Selling Bonus / DRIP units = Selling your equity because of dilution.
So difficult to understand meh?

If you own 10 lots of RHB, and it give out a 1 to 10 bonus, you would receive 1 lot free.
You decide to sell the bonus unit and collect cash money,
Would you consider the cash money as dividend?

Same apply to DRIP lah, the cash you receive from selling the extra units is not dividend but actually selling your equity lah.

Hahaha.......prudentinvestor,
If you want, without DRIP you also can dispose part of your shares and claim DY = 7.27%.

It is OK if the company want to pay out less cash because of want to use it some where else for better purpose.
1) It is OK to declare 31.5 sen, everyone understand that the DY = 5.72%.
2) It is also OK to declare 40 sen with DRIP, as long as we understand the Real DY is still the same 5.72%.

However, there are some problem with DRIP:
1) Unfair to the relatively small shareholders, it create unnecessary odd lot, if you opt to round down to the nearest 100 units, then you lost out some value.
2) Worst for the very small shareholders, for example, Last time I read prudentinvestor wrote that he never opted for Maybank DRIP because not worth it. Not worth because of the troublesome or odd lot? Or not worth it because the stamp duty plus service charged by Boardroom = RM15.00 is greater than the discount?
3) For my case for RHB DRIP, I opted for DRIP because after round down to the nearest 100 units, my take up rate is 97.6%, which is much higher than the overall 85% take up rate., I did not calculate but I think worth the RM15.00 cost.

However, if the company already confirm paying dividend with DRIP. Unless your holding is small that not worth the cost of doing so, please go for the DRIP, then decide whether to keep or dispose the extra DRIP units.

In the BOD meeting,
CFO reported that the best dividend amount to pay out should be around 31.5 sen per share.
Director A asked: Can we pay out higher dividend, say 40 sen per share?
CFO replied: If we pay out 40 sen, next year we may face some cash flow problem.
Director B said: We don't care, you are highly paid, you go and think of a way.
CFO suggested: May be we can pay 40 sen with DRIP, the actual cash dividend payment will be 31.5 sen only.
Director C asked: How sure are you that shareholders will opt for DRIP?
CFO answered: Just give maximum discount.

Finish meeting, and all go for happy hours.

Come on lah, you can't even understand what is dilution due to DRIP.
RHB could give you 100 sen dividend with all DRIP,
And you would believe the DY =18%.

prudentinvestor
Do not pusing pusing like a snake, please lah.

The 2.5% dividend guaranteed by the Malaysia government is only applicable to the conventional account.
No such guarantee for the Shariah account.

I think prudentinvestor don't know about this, if he know, he would have said 2.5% instead of 2.0%.

Don't you know that for conventional account, EPF must pay at least 2.5% dividend?
Unless you are saying both EPF and the Malaysia government become bankrupt? You said it, I dare not to say that.
You are so ignorant meh?

RHBBANK dividend before 2021 were lower because no DRIP.
When there is DRIP, the hard Cash flowing out from the company is less.
If RHBBANK really want to paint a picture of very high DY, it can actually declare a yearly dividend of 100 sen.

Simple job, just make the whole lot of that 100 sen dividend can be DRIP,
The Fake DY= 100 / 550 = 18%
But the Real DY = 100 * 15% / 550 = 2.7%

Then some simple minded will grumbling even louder why DY = 18% but price can not move up?

CIMB and MAYBANK already gone up, but why can't RHB also fly?
Why ha? Dun know lah,
But base on yesterday closing,
CIMB Real DY = 6.2%
MAYBANK Real DY = 6.0%,
RHBBANK Real DY = (30+10*15%) / 550 = 5.7%.

EPF own RHBBANK 1.77B * 5.50 = <10B.
EPF Total NAV is now >1000B
If RHBBANK screwup, EPF Dividend will be lowered to 2%???
You must be joking.

Hahaha...
So many simple minded people believe that DRIP applicable Dividend is real Dividend.
They cannot understand the effect of dilution meh?

People come here to read/comment, may be with different agendas.
I will be a liability to some of them.

It is my freedom to voice up and provide my opinion.
If you want to argue with me, no problem, but up to me to respond to you or not, or you can just skip my comment.

RHB has already flown one time when it started increasing dividend to 40 sen with DRIP, which many people think it is a real increase.

What making fuss?
What fooling around?
I have explained in details why its DY is actually around 5.7%.
This is freedom of opinion.
A company implement DRIP may be is because of one or more of the following reasons:
1) Not much cash to pay dividend.
2) Have sufficient cash but do not like to pay out cash.
3) Have plenty of cash but want to invest in new venture/project.
4) Want to make-up the DY look like very high, hoping it could pump up the share prices.

Do not confuse the less educated newbie into believing RHB DY is very high at 7.3%.
That is not real, the real DY is around 5.7%, this is already high and good.

Fact #1 :
RHB paid 40 sen dividend only after they started DRIP.

Fact #2 :
The portion of dividend that could be DRIP is actually an useless mini scale of bonus issue. If you choose to sell the bonus units, then your holding will be diluted.

Out of the 40 sen, only 31.5 sen is real, the balance 8.5 sen is not real.
1) If you want to receive that 8.5 sen Cash, you are selling off your ownership in term of percentage.
2) If you want to maintain the same ownership in term of percentage, then you would not have that 8.5 sen cash.

Real DY = 31.5/548 = 5.75%.
5.75% DY is already very good, why still want to cheat yourself?
Or you can not understand at all what is dilution?

Hahaha.
Don't you know that before they started DRIP, the dividend were much lower than 40 sen?
The magic is that they could give higher dividend because of DRIP, so the the 40 sen dividend is not real.

Hahahaha....
You still dun understand what is dilution. 😀😀😀

Very funny lor,
You calculate fake DY by 40/550=7.27%, I calculate 100/550=18%,
What is the difference? 😀😀😀

You are the one who calculate the fake DY that way lor.
Total Dividend 40 sen, price 550 sen, fake DY = 40/550 = 7.27%.

Hahahaha......

RHB could actually give out 100 sen Dividend to make you happy.
No problem at all, just make all the 100 sen applicable for DRIP at 10% discount.
Base on 85% take up rate, RHB need to pay out 15 sen Cash only, the rest are all extra new shares.
Then the market calculate the fake DY to be = 100/550 = 18%.

prudentinvestor
You don't understand what is dilution.

How do you know RHB price will be the same one year later?
Don't you know that when the o/s shares quantity grow larger, it is harder for EPS and DPS to grow?

1) You received bonus units, you sell it and received Cash.
2) You received DRIP units, you sell it and received Cash.
The above two cases are the same, both will cause your holding get diluted.

prudentinvestor,
Last month DBS gave 1:10 bonus,
Let say RHBBANK will do the same, and you have 100,000 units and the price is 5.48 on the eve of Bonus Ex-date.
So the Ex-dated price = 5.48/1.1=4.98, and you sell 10,000 units at 4.98, you received the sale proceeds 49,800 Cash.
So according to your simple mind, the DY = 49800 / 100,000 / 5.48 = 9.1% ????

Value Investor Coo1eo,
I have tried my best to explain in details.
If you still want to simply calculate DY = (0.25+0.15)/share price, up to you.

According to RHB yesterday announcement, 2 main points:
1) RHB Bank will be issuing 73,141,449 DRP Shares.
2) 87,812,350 DRP shares would have been issued had all the entitled shareholders of RHB Bank elected to reinvest the Electable Portion into DRP Shares.

Meaning RHB total outstanding shares before DRIP = 87,812,350 * 4.88 / 0.10 = 4,285,242,680.

Let say Mr. A bought 428,524 shares (0.01% ownership) on the eve of Dividend Ex-date at price 5.72.
He opted for DRIP, and entitle to 8,781 DRIP shares,
Now he would have 428,524 +8,781 = 437,305 after the DRIP.

And RHB total outstanding shares after DRIP = 4,285,242,680 + 73,141,449 = 4,358,384,129.
To maintain 0.01% ownership, Mr.A can sell 437,305 - 435,838 = 1,467 shares.

Let say he sell it at 5.48, he will receive Cash 1,467 * 5.48 = 8,039.
He also received Cash Dividend = 428,524 * 0.25 - 8,781 * 4.88 = 64,280.
So the total Cash he received = 8,039 + 64,280 = 72,319.

Then 72,319 / 428,524 = 16.88 sen per Share.
To include the first interim dividend of 15 sen Cash,

The Dividend Yield of RHB = (0.1688 + 0.1500) / 5.72 = 5.57%.

Of course, if you want to buy now for future dividend payments,
The DY would be a bit higher at = (0.1688 + 0.1500) / 5.48 = 5.82%.

Look at the latest Cost to Income Ratio (CIR) of the 6 blue chip banks.
1) AMBANK = 43.8%
2) CIMB = 46.9%
3) HLBANK = 39.7%
4) MAYBANK = 47.8%
5) PBBANK = 33.7%
6) RHBBANK = 47.5%

PBBANK is really no joke, it is so well managed, its CIR is even lower than DBS's 37.0%,
No wonder it is trading at the highest Price / Book ratio among the 6 banks.

HLBANK is also not bad, but the mother company HLFG is so cheap due to Conglomerate Discount, so I prefer HLFG over HLBANK / PBBANK.

But MAYBANK is the "dragon head" among the local banks, and with high Dividend Yield.
So must invest in MAYBANK too.

Once it come out from the trap, it will fly. 😀😀

Maybank for high DY.
HLFG for low PE.

Look at ICAP portfolio on 29.02.2024:
1) 5099 ~ 4.75%,
2) 5099LA ~ 1.46%,
3) 5099WA ~ 0.27%,
Total weight ~ 6.48%.

Aiya, why TTB like 5099?
If I were him, I will dispose 5099 and 5099WA, then swap to 5099LA.

Anyway, I have already sold all my 5099LA.

Unless previously converted or redeemed (subject to the terms and conditions of the RCUIDS), AAGB shall redeem the RCUIDS in accordance with the redemption schedule as outlined in Appendix I of the abridged prospectus dated 2 December 2021 in relation to the Rights Issue ("Abridged Prospectus") ("Redemption Schedule").

Please take note of the above statement.

The Appendix I (Page 61)
Anniversary from Issue Date % of issued size redeemed*
1st -
2nd -
3rd -
4th 25%
5th 25%
6th 25%
7th 25%

If we do not convert, the company will redeem at 75 sen on Dec 2025, 2026, 2027 and 2028.

prudentinvestor
You must understand one thing, whenever there is DRIP, the total out-standing shares of the company will increase.
Therefore harder for the company EPS, DPS and price to move up.
Do not just look at the numbers of share you own, but the ownership in term of percentage is more important.

If no reason for them to sell 5099LA, then we buy.

Pinky,
Say if you are entitled to 12345 DRIP shares, you can ask for 12300 DRIP shares only, the balance will be paid to you in Cash

Pinky,

It is true that the dividend that we are receiving is paid out of the equity value.
However, Cash Dividend is a strong evidence that the company have the ability to pay out.

jeffchan1901,

Frankly speaking, I don't like DRIP.
The company total out-standing shares will increase,
Harder for the EPS, DPS and share price to move up.

I bought Maybank because they have stop DRIP,
If Maybank continue DRIP again in future,
I hope other investors like it, then that is the time I will sell.

Kicapmanis,

Look at past records, RHB DRIP take-up rate were around 85%,
Logically, the DY = (0.15+0.15+0.10*(15%) ) / 5.50 = 5.72%.

For Maybank, there were no DRIP for the last 3 dividends,
I hope no more DRIP in future.
For FY2023, DY =0.60 / 9.79 = 6.13%.
So I would say Maybank's DY is higher than RHB.

Last time I did not invest in Maybank, but now I do invest some.