Monday, March 9, 2015
Genting Singapore PLC
I am beginning to see value in this counter.Trailing PE is around 22 and P/B is approximately 1.5.Currently the business still generate more than a $1b of cash flow per year and net debt is low. There is a credit risk with VIP segment has evidenced from the larger provision in last quarter results but I expect management to tighten its credit profile.There is a new hotel coming up in Jurong which will help to drive its mass market segment. All in now, the share is now trading at its 5 year low and management has kick start its buy back programme with 6m shares just bought in yesterday through its buy back programme.It is hard to see value in a lot of counters nowadays but I decided to take the plunge on this one.Although there are casinos coming all over in asia but Genting Singapore is in Jeju and will have a good chance in Japan if regulation goes through.In terms of accessibility, Genting Singapore still command a premium over many casinos in asia.Macau may be more attractive but Chinese gamblers may be more caution over there as it is in the PRC jurisdiction.I made my bet and vested at 0.935 cents.