Hot Stock Genting falls 3% on Singapore unit loss, broader market weakness

by **Cals** Fri 14 Aug 2015, 18:50

Hot Stock
Genting falls 3% on Singapore unit loss, broader market weakness

KUALA LUMPUR (Aug 14): Genting Bhd fell as much as 21 sen after 52.74%-owned casino operator Genting Singapore PLC ([You must be registered and logged in to see this image.] Financial Dashboard) swung into a net loss in the second quarter ended June 30, 2015 (2QFY15) from a year earlier.
Genting (fundamental: 2.1; valuation: 0.8) fell to its lowest so far today at RM7.41.
At 12.30pm, Genting settled at RM7.44 for a market capitalisation of RM27.66 billion.
The stock saw some 1.4 million shares done.
The FBM KLCI fell 30.07 points or 1.9% to settle at 1,591.55.
Singapore-listed Genting Singapore swung into a net loss of S$16.93 million (RM48.96 million) in 2QFY15 compared to a net profit of S$102.29 million. Revenue fell to S$578.15 million from S$751 million.
Cumulative 1HFY15 net profit fell to S$45.74 million from S$330.78 million a year earlier.
Revenue was lower at S$1.22 billion compared to S$1.58 billion.
In a note today, Kenanga Investment Bank Bhd said Genting Singapore's weaker-than-expected results were mainly driven by the drop in its casino business.
Kenanga said Genting Singapore's 1HFY15 profit after tax of S$104.19 million accounted for 22% of consensus forecast.
"Management still guided challenging prospects for gaming business, especially the high-roller segment from China while the weakening regional currencies could impact its ASEAN clientele as well," Kenanga said.
[size=12](Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)[/size]