GENTING SINGAPORE: Full year profit for 2014 declined 10% from $708 million in 2013 to $635 million. Of the $635 million, $118 million belongs to perpetual security holders, therefore, the difference really belong to ordinary shareholders which translate to 4.3 cents a share.
At current share price, Genting S'pore's PE is 25 times, NAV is 61 cents, and with only 1 cent dividend, its dividend yield is only 1%. Its big ticket item is the impairment loss on trade receivables of $262 million, 42% higher than 2013.
What drives that huge impairment, I really don't know, cannot figure out, and cannot understand why. Is Genting worth 1.00 a share?. That is the floor from a technical view. If it drops below that floor, it may end up close to its NAV, and give it a reasonable PE of 14 times. I also see lower high all the time from the chart, but not lower low. Someone supporting the share price from falling below 1.00? Not so sure.
Prior to his retirement, Chan Kit Whye (left) worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.
EPS is 4.5 cents, while its NAV is 16.8 cents. Final dividend is cut by half from 4 cts in 2013 to 2 cents currently, giving a total dividend paid for the year of 4 cents, which translate into 5.2% dividend yield. The telecom segment revenue has declined 12% to $61 million while its infocomm segment revenue has improved by the same percentage to $121 million. Asean revenue improves by $15 million managed to counter the decline in revenue from Middle East and Africa by $9 million.