Genting. The word itself conjures up images of its casino, the mist up in the highlands and the story of how Tan Sri Dato’ Seri (Dr.) Lim Goh Tong came to Malaysia with only RM1 in his pocket.
I just came back from Genting Highlands for a one-night stay. Take my word for it, Genting, in Malaysia is something else. My last visit to Genting was ages ago and I was dazzled by the improvements and refurbishments Genting Malaysia has made.
Let me tell you what made me want to cover this stock.
- The road up Genting Highlands wasn’t the dizzying winding road it was. It is a lot better and much safer now. Also, it was congested on my way up and on my way down.
- On the way up, stopping by Gohtong Jaya for lunch, it was packed as well.
- Casinos. There’s 2 now. 1 word – Monopoly. Genting Malaysia is the only company with a casino license.
- Lastly, I truly enjoyed my stay up there. The food, the stay, the cold, even amongst the crowd, I enjoyed myself.
Genting Malaysia 2018 Annual Report
Revenue – RM9.9 billion
Net loss – RM86.3 million
Revenue grew 6.4% y-o-y. The net loss was mainly due to bad deals made in the US.
That 97% occupancy rate basically made me queue for the shares yesterday. Let’s hope GENM opens up an additional hotel or two soon to capitalise on the high occupancy and turn day-trippers into over-nighters.
Casino License in Malaysia
Effective 2019, Genting Malaysia’s annual casino license fee was raised to RM150 million (from RM120 million). The RM30 million increase is nothing compared to the casino duties GENM has to pay this year – 30% (compared to the previous 25%).
Genting Malaysia Theme Park Opening
According to Google, GENM’s outdoor theme park is set to open in November this year. Now, as a shareholder of Genting, I can’t wait.
I can’t wait to see the financials next year.
At the current price, based on historical dividend payments, I can expect a 6%+ yield on GENM.
As I’ve always mentioned, historical payouts do not equal to future ones. A conservative dividend yield could be around the 4-5% range. Just in case the board decides to forego special dividends this year.
Bought date – 26 August 2019
Bought units – 4,800
Bought price – RM3.0602
Current price – RM3.0800
A list of good dividend stocks in Malaysia can be found hERE.