Gerard Tee's comment on GENTING. All Comments

Gerard Tee
8 Like · Reply
RM 1.0 or below likely
cheng
or back to 1.80 post price fixing
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Gerard Tee
it's low but not that low yet
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cheng
observing what the boss wants to do / his subsequent capital allocation moves. His complicated corporate structure makes it difficult to dig further details unless he discloses them in the official reports.
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Vin Vin
hope genting remove right issue .haha
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cheng
unlikely, Vin. its interest free and it makes the balance sheet of Gent looks really good; assuming the official reason for the rights issue is for debt repayment :) if you look at the details in the annual report and at the company's level instead of consolidated level, Gent's borrowings increased by 3mil to ~6mil due to GenM's acquisition and of the 6mil, approx 2.2bil due by mid of 2027 followed by 450mil by Dec'27, 600mil by Dec'28. It has cash of ~1.2bil on hands now while Gent is generating avg 600mil to 700mil yearly pat. Last year pat dropped to 280mil and impairment shot up to ~490mil. A big chunk of the impairment seems to be coming from DNAe + some from RWLV probably. Gent's main income came from mgmt & licensing fees ~700mil per year and dividend income from its subsidiaries ranging from 500mil to 650mil per year; last year dividend income dropped to ~450mil. Basically, annual PAT will be able to cover the MTNs if you will and the statement from the mgmt that there will be no cash call anymore. I am more concerned on capital misallocation (other new investments) while RWS and RWLV are recovering and RWNYC ramping up.
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cheng
August 15, 2026 : DNAe Company Statement
The company is undertaking a significant restructuring following a review of its funding requirements and strategic priorities. As part of this process, we are currently substantially reducing our workforce and reducing operational activities at our UK and US facilities for now.
These decisions are very difficult and do not reflect the commitment, talent or contributions of our employees. We are extremely grateful for their outstanding work and are committed to supporting affected colleagues through this transition. The company is focused on preserving and maximising the value of its proprietary technology platform, intellectual property portfolio and other assets while evaluating strategic options for the future. We will not be commenting further on specific workforce matters or confidential business discussions. https://www.dnae.com/news-posts/dnae-company-statement/
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cheng
Possible some amount of impairment exercise carried out in 2023 and 2024 for DNAe as well. And hopefully no more impairment surprises from DNAe after the recent announcement of restructuring :)
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Vin Vin
hope lkt buy more genting shares in this few weeks
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cheng
he is will continue to buy, Vin. 2% translates to approx myr100mil at the avg of 1.40 per share and the amount is relatively small compared to the 560mil that the boss has committed for the rights issue.
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Lim Ka Keat Daniel
Cheng, it’s very fishy that Genting chose to do RI instead of refinancing the borrowings. After all, the debt repayment amount is only 800M, which could be easily refinance.
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仙 黄大
跌出100大市值 拭目以待 0.9就不是100大市值了 1块 就会有资本家收购他公司了
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cheng
the official reason is debt repayment, daniel :) and if you were to look at the list of MTNs in the annual report, there is one MTN by Genting Capital issued back in 2012 for 1.5bil will be maturing/expiring in Jun 2027; part of the 2.2bil MTNs maturing by Jun'27 that I mentioned above. The reality is the boss is buying the dip.
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1 Like · 2 days · translate
Lim Lay Kian
why lkt never open his mouth to say deduct own self and sons salary and benefit in kind ? As a CEO of the company , produce such a screw up result for the groups . Never realize he has done such a screw up job for the GB.
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cheng
I would prefer for lkt to clean up his empire's complicated structure with layers of holding companies :(
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cheng
CEO Ah Tan is busy buying the dip too
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cheng
such progress/development will not make it to the main stream media due to the complicated structure of Genting Berhad under LKT's leadership - https://www.cortechs.ai/cortechs-ai-and-carpl-ai-partner-to-expand-global-access-to-ai-powered-imaging-solutions/
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cheng
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cheng
Lets see whether any announcement by the UK MHRA during the week of 29th Oct, 26th Nov and 17th Dec for HMTM's marketing authorisation approval. These are the last 3 sessions for CHM in 2026.
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Vin Vin
1.41 even taurx approve.. I believe alot investor still huge loss .. haha
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cheng
thats true, Vin. Unless HMTM goes global beyond UK. TauRx's strategy seems to start with UK approval first and then followed by other markets.
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Vin Vin
Gent price drop more than 50% within 1 year...quite terrible
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cheng
Thanks to the boss, Vin. Indirectly squeezing shareholders out. I dare not even add till today until q3 results is out.
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Vin Vin
At this moment....maybe Warren Buffett golden worlds will help ? be greedy when others are fearful!! :)
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cheng
logically yes as it is backed by physical resorts, list of properties valued at ~47bil and the potential for growth/generating revenue from these assets, Vin. However, revenue and profit are moving the opposite direction. Revenue goes up, profit goes down. Cost is creeping up and higher revenue came from low margin business (empire resorts consolidation and UK) while RWS, RWLV in recovery mode and RWNYC ramping up (hold rates for table games looking good though; consistently at the top range of high tens). The only positive side for now is that ebitda margin from the core assets are not falling. One announcement of rights issue before approval is sufficient to send it 25% lower. Safer to see results first before being greedy :)
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Lim Ka Keat Daniel
Cheng, I think RWLV has a lot of potential to grow further. Margin has improved for the past 2 consecutive quarters to 20%+. A growth in revenue will send the EBITDA flying.
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cheng
Noted, Daniel. Let's wait for q3 results to be released; the holiday season.
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Vin Vin
If this Qe still below 100m...or loss...
really can close file ady... since the RwNy GGR Keep maintain during this Q3... no more excuses lol
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cheng
That's right, Vin.
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Lim Ka Keat Daniel
Vin, one RWLV loss can actually wipe out all the gains from other divisions. That’s because RWLV is 100% owned by GB, but others that make money are just 50-75% owned. So, if RWLV performs, it will lift up the group profit tremendously.
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Vin Vin
Daniel...just my2cent ..if rwlv really successful...
no need wait until 2026... still huge loss ...
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Lim Ka Keat Daniel
Vin, something really bad happened during 2024/25. It affects the entire operation. After the new chief came in, things seem to get much better now. We can get more confirmation in Q3&4.
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cheng
I can only hope for 0.80 to avg down to 1.4 :) else, will just subscribe to the rights without additional capital.
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Vin Vin
Seriously.. we need to accept defeated... If a strong company especially top30 ... It won't plunge like no tomorrow... But genting is the only one...
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cheng
imagine the frustration of those holding since before Covid to now, Vin.
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cheng
mr market tempting 30% discount from the price of announcement day :) will skip it still until the exdate / q3 results; whichever that is earlier.
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PANORAMA
High global crude oil price (adverse impact on business and spending power), Prolonged Haze (adverse effect on tourism, travelling & business), & increasing global borrowings yield % (challenging for highly indebted company to raise working capital funds and expensive financing). Perfect storm due to timing of rights issue.
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1 Like · 14 hours · translate
仙 黄大
谁买在4块的出来
他们说3块已经很低了
头行说2块
操他吗的 谁来告诉我
2 Like · 13 hours · translate
Man Han
这个股好像titanic, 连大机构都丢了,叫我们这些Ikan bilis如何推高股价,没希望了,明天要爆跌了
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Vin Vin
right issue 1.30
current price 1.35
谁还要subscribe RI ?
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cheng
the boss made it clear that it will be 25% to 30% discount to TERP on a full subscription basis. excess rights will be taken up and company will get the 1.25bil intended from the rights issue. Having said that, it is unlikely for the market price to move higher now as that implies higher rights price. Will have to wait until ex-date for short term traders to return :)
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1 Like · 13 hours · translate
Man Han
叫老板买完100%咯。让它自己玩。
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cheng
my plan is still the same, Vin. Sell the rights to raise fund to subscribe; not gonna add capital to subscribe :) If q3 results meeting expectation, will add some after ex date. Else, will exit.
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Man Han
天天在这边听Vin vin和cheng吹水讲到很高深,然后又天天看rhb 妹妹和uncle笑我们,然后又看到tan每天说2.50, 1.50,1.00 all in.. 然后天天看它股价跌,真是人生一大衰事啊。。神啊,救救我吧
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Vin Vin
Cheng , can't believe Gent share price keep fall seem like genting going to closed soon...
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PANORAMA
Q3 will not be good. Otherwise, share price will not be at current level. I heard from friends that GenS VIP very quiet despite October China Golden Week & F1.
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cheng
That's how powerful the boss is, Vin. Look at GenM's price now versus his offer of 2.35. Boss will say he has no control over market force. One rights issue announcement and that is sufficient to offer boss 30% discount to announcement day price.
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Ricardo Siau
Wonderful real-life case study for MBA students
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Tteffub Nerraw
Cheng..conspiracy theories lagi kah? Wake up!!! This is not value investing lah!!! Come on bro ..no pun intended
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cheng
Can update the data and publish updated findings :) the impact of 25%-30% discount to TERP. https://www.mfa.com.my/wp-content/uploads/2013/12/vol-9-2001-p1-p20.pdf
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Eddy Khoo
wow, after 4pm and it just drops. something brewing again? raising another RI for another rm1.5 bil? squeeze both GenM and Gent to penny stocks before offering to take over again.
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Eddy Khoo
still no announcement on boss margin call and forced sale like what happened to zetrix?
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Sean Ong
T8 force selling and Margin call. Expected.
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来都来了
reset to 0.....
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PANORAMA
Extreme and sudden movement (continuous selling pressure) after 4pm today and it dipped to low of 1.31. Let’s see tomorrow.
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cheng
Retail force selling?
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PANORAMA
Possibly retail forced selling. Substantial shareholders will not face margin call pressure since only ~ 30% are pledged shares and still have high % of non pledged shares.
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cheng
Lol, Eddy. LKT needs to park the expenses into dev costs and amortise it over 100 years. Confirm profits will be nice on paper. I am just joking as that's a red flag if LKT is doing that.
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Eddy Khoo
the RI won't be feasible if the price fixing is too low as more shares need to be distributed and dilute the eps further.
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PANORAMA
The RI cannot be cancelled now as the consequences will be drastic. Rating agencies will down grade Genting lowest investment grade status further in the event of such reversal.
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