Award-winning Financial Journalist

Ashish Saxena

<a href="https://www.smartkarma.com/entities/439" target="_blank" data-smartkarma-citation="entities:439">Genting Singapore Plc</a> has called for its <a href="http://infopub.sgx.com/FileOpen/Notice%20of%20AGM%202016.ashx?App=Announcement&amp;FileID=395351" target="_blank">31st Annual General Meeting on April 21</a> at Resorts World Ballroom West, Resorts World Convention Centre, Basement 2, 8 Sentosa Gateway, Resorts World Sentosa, Singapore.Last week, the Resorts World Sentosa operator published its <a href="http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&amp;B=AnnouncementLast6Months&amp;F=ARN013AN5BKLD6IY&amp;H=4367ca4b90274c01599c82b83e27f7e5236431cb7becaf6f93eaa8e10c67a709" target="_blank">annual report</a> for 2015.After reading the annual report, there are a few questions that the investors might want to raise at the AGM.<ul><li>First, its Executive Chairman and the controlling shareholder Tan Sri Lim Kok Thay took home a higher remuneration in 2015. That's despite a bad set of numbers for the year. Moreover, the break up of his remuneration suggests it was higher due to a greater bonus in such difficult times.</li><li>Second, the company has not disclosed the performance criteria based on which it arrived at the bonuses paid to the executives. Looking at the disconnect between its Executive Chairman's remuneration and its performance, investors might want to look at the criteria. That also applies to the Performance Share Scheme which it wants to amend and extend for another 10 years, subject to shareholders approval at the upcoming AGM.</li><li>Third, it seems to have made the biggest bad debts write-off in its history. While the quarterly earnings' reports track the allowance made for doubtful debts, the annual report revealed almost S$ 624.3 mln worth of doubtful debts were written-off during the year from that accumulated allowance.</li><li>Fourth, at the upcoming AGM, the shareholders have to vote on renewal of share buy-back mandate. It's previous mandate is still valid. Looking back, it has not bought back shares for the last 8 months. That's despite the stock getting hammered to multi-year lows and trading well below its last buy back price in August.</li><li>Fifth, one of its independent director sold shares in the market on the day it was buying back from the market.</li><li>Finally, it suffered almost half a billion dollars in losses on impairment, disposal and revaluation of its available-for-sale financial assets and derivatives. Yet, very less remains known about those assets.</li></ul>We have emailed the questions to the company for its responses. That email remained unanswered at the time of the publication of this insight. Do keep an eye on the discussion section for more updates.Now, let's take up each of those points, one at a time.

Genting Singapore Plc has called for its 31st Annual General Meeting on April 21 at Resorts World Ballroom West, Resorts World Convention Centre, Basement 2, 8 Sentosa Gateway, Resorts World Sentosa, Singapore.Last week, the Resorts World Sentosa operator published its annual report for 2015.After reading the annual report, there are a few questions that the investors might want to raise at the AGM.First, its Executive Chairman and the controlling shareholder Tan Sri Lim Kok Thay took home a higher remuneration in 2015. That's despite a bad set of numbers for the year. Moreover, the break up of his remuneration suggests it was higher due to a greater bonus in such difficult times.Second, the company has not disclosed the performance criteria based on which it arrived at the bonuses paid to the executives. Looking at the disconnect between its Executive Chairman's remuneration and its performance, investors might want to look at the criteria. That also applies to the Performance Share Scheme which it wants to amend and extend for another 10 years, subject to shareholders approval at the upcoming AGM.Third, it seems to have made the biggest bad debts write-off in its history. While the quarterly earnings' reports track the allowance made for doubtful debts, the annual report revealed almost S$ 624.3 mln worth of doubtful debts were written-off during the year from that accumulated allowance.Fourth, at the upcoming AGM, the shareholders have to vote on renewal of share buy-back mandate. It's previous mandate is still valid. Looking back, it has not bought back shares for the last 8 months. That's despite the stock getting hammered to multi-year lows and trading well below its last buy back price in August.Fifth, one of its independent director sold shares in the market on the day it was buying back from the market.Finally, it suffered almost half a billion dollars in losses on impairment, disposal and revaluation of its available-for-sale financial assets and derivatives. Yet, very less remains known about those assets.We have emailed the questions to the company for its responses. That email remained unanswered at the time of the publication of this insight. Do keep an eye on the discussion section for more updates.Now, let's take up each of those points, one at a time.

Genting Singapore: What Explains A Greater Bonus For Tan Sri Lim Kok Thay When Profit Plunged 70%?

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

Genting Singapore operates one of only two casinos in Singapore.Genting and competitor Marina Bay Sands hold roughly equal&nbsp;market share.The casino in Resorts World Sentosa is the&nbsp;company's major asset, accounting for 77% of 2014 revenue.Singapore, Asia's second-largest gaming market and the world&rsquo;s&nbsp;third-largest, raked in SGD 7.5 billion (USD 6.1 billion) in gaming&nbsp;revenue in 2014.Genting's 30-year casino license granted by the Singaporean&nbsp;government will expire in 2036. The end of its 10-year exclusivity&nbsp;provision in 2017 will allow the government to issue an additional&nbsp;license at that time.The absence of any signs from the government&nbsp;in granting another license, together with the government&rsquo;s&nbsp;concerns about gambling, suggests the risk of a new license is&nbsp;small, in our view.Analyst: Chelsey Tam

Genting Singapore operates one of only two casinos in Singapore.Genting and competitor Marina Bay Sands hold roughly equal&nbsp;market share.The casino in Resorts World Sentosa is the&nbsp;company's major asset, accounting for 77% of 2014 revenue.Singapore, Asia's second-largest gaming market and the world&rsquo;s&nbsp;third-largest, raked in SGD 7.5 billion (USD 6.1 billion) in gaming&nbsp;revenue in 2014.Genting's 30-year casino license granted by the Singaporean&nbsp;government will expire in 2036. The end of its 10-year exclusivity&nbsp;provision in 2017 will allow the government to issue an additional&nbsp;license at that time.The absence of any signs from the government&nbsp;in granting another license, together with the government&rsquo;s&nbsp;concerns about gambling, suggests the risk of a new license is&nbsp;small, in our view.Analyst: Chelsey Tam

Genting Enjoys a Strong Position in Singapore's Gaming and Tourist Market.

Malaysia

Genting Malaysia Berhad operates a tourist resort in Genting Highlands which includes hotels, restaurants, casinos, and recreational and amusement facilities. Through its subsidiaries, the Company also develops and leases property, operates leisure and hospitality services, and provides time share ownership scheme.

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Genting Malaysia (GENM MK)

Genting Singapore: What Explains A Greater Bonus For Tan Sri Lim Kok Thay When Profit Plunged 70%?

Genting Singapore Plc has called for its 31st Annual General Meeting on April 21 at Resorts World Ballroom West, Resorts World Convention Centre,...

Ashish Saxena

Genting Enjoys a Strong Position in Singapore's Gaming and Tourist Market.

Genting Singapore operates one of only two casinos in Singapore.Genting and competitor Marina Bay Sands hold roughly equal market share.The casino...

Morningstar, Inc.

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52-week Range

Market Cap (USDm)

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