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GENM: A relook into Genting Malaysia from Profitability, Volume Spread Analysis, and what’s Insiders Report are telling they are doing now?
Genting Malaysia Berhad (GENM) (4715.KL) listed in the Bursa Malaysia
Genting Malaysia (GENM) is one of the leading leisure and hospitality corporations in the world which consist of gaming, hotel, entertainment, and amusement. Genting Malaysia (GENM) operates through two segments.
- The Leisure & Hospitality segment comprises integrated resort activities, which include the gaming, hotel, entertainment and amusement, tours and travel-related services and other supporting services.
- The Properties segment is involved in property developments, property investment, and management.
Genting Malaysia (GENM) owns and operates major properties including Resorts World Genting in Malaysia, Resorts World Casino New York City, Resorts World Bimini in the Bahamas, Resorts World Birmingham and over 40 casinos in the United Kingdom and Crockfords Cairo in Egypt. Genting Malaysia also owns and operates two seaside resorts in Malaysia, namely Resorts World Kijal in Terengganu and Resorts World Langkawi on Langkawi island.
Revenue for Genting Malaysia improved by 11% yoy to RM5,337.1 m on 1H19. The improvement mainly contributed by higher revenue from the leisure and hospitality business in Malaysia by 14.9% yoy to RM3,665.6 m. However, the overall business volume from the gaming segment declined in 1H19 due to reduction in incentives offered to the players. Strengthening of the USD against MYR helped to achieve higher revenue from the leisure and hospitality businesses in the US and Bahamas by 7.8% yoy to RM745.1 m.
Recent Insider Report for Genting Malaysia (Bursa Malaysia)
In Genting Malaysia (GENM), it is interesting to note that their parent company, Genting Bhd is their largest shareholders owning almost 49% of the company with a floating share of 46.6% in the Insider Report of Genting Malaysia (GENM).
Bursa Malaysia listing requirement stated a listed company like Genting Malaysia (GENM) has to meet a 25% public spread requirement. Public investors are defined as investors with less than 5% shareholding and not related to directors of the company. The 25% public spread must also meet the minimum requirement of 1,000 public shareholders holding no fewer than 100 shares each.
There are sufficient shares for anyone to move the share up or down, thus liquidity of Genting Malaysia (GENM) can be maintained.
The major shareholder Genting Berhad had not resorted to reducing or selling their shareholding as per Insider Report in the past nor I will see that happening in future, so the base of support @ RM3.00 for Genting Malaysia (GENM) is solid.
There’s look like an exchange of major shareholder between Eastspring Investments and GIC Private Limited (Singapore equivalent of Khazanah Malaysia) in the Insider Report.
Is this a pure coincident or by design? We will never truly know unless unit trust holder equivalent ask their fund manager Eastspring Investments Berhad.
Know Insiders in Insider Report for Genting Malaysia (GENM)
Known Major Shareholders (2)
As of 14 Mar 2019
49.53 % Genting Bhd
< 2 % Government of Singapore
Number of Shares: 5938 Million with floating shares 46.63%.
Conclusion: In the Insider Report, Genting Malaysia (GENM) didn’t see major selling but more of a reshuffle of shareholders between GIC Singapore and EastSpring Investment Berhad. I believe support for Genting Malaysia (GENM) @ RM3.00 is solidified within the scope of the Insider Report.
Profitability Analysis of Genting Malaysia
The return of equity for Genting Malaysia (GENM) is in the negative area and does look similar to the parent company Genting Bhd doing slightly better.
With the opening of the overseas casino (Empire in NYC) and rebranding of the theme park (with Fox and non-Fox brand) in Malaysia, we will see the company Genting Malaysia return to black profitability soon but not so soon though.
Weekly & Daily Chart VSA (Volume Spread Analysis) Review
Based on the weekly VSA chart, Genting Malaysia started to show strength by looking at the volume and market stages. Notice the distribution started on 22 May 2017 followed by mark-down stage. Genting Malaysia caught our attention as a VSA trader due to the high volume sell-off bar on 5 & 26 November 2018. Market stages subsequently change to accumulation and this offering us as VSA trader or investor for potential entry.
The accumulation in the weekly chart for Genting Malaysia is well supported with a spring bar. Trader or investor is advised to exit if the Spring bar fails to support at RM3.00. Look for next Sign of Strength above support if you looking for potential entry.
Similar with weekly VSA chart, daily Genting Malaysia chart showing temporary weakness back to the major support level. However, it is interesting to see another high-volume Sell-Off bar on 7 August 2019. The Sell-Off stopped near support level and price continues to move sideways in the accumulation.
From the Insider Report of Genting Malaysia (GENM), we also found BlackRock Institutional Trust Company are entering near the support after the Sell-Off. As for current setup in Genting Malaysia, we prefer to have a sign of strength signal with the Pentagon to ensure the removal of weak hand-holders is completed before the testing the resistance again at RM3.54.
*Pentagon Guider System has Buy or Sell Indicator indicated by Green Pentagon Icon and Red Pentagon Guider Icon in the field of Volume Spread Analysis. However, we advised the reader that not all pentagons are bought or sell taken literally 100% of the time in Volume Spread Analysis method.
Contact us via email at support@tradevsa.com or Call/WhatsApp at +6010 266 9761 if you have any queries about this Genting Malaysia (GENM) Group and its Insider Report article or opinion to clarify.
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