Genting is optimistic of clinching one of the two Singapore casino licences to operate in Singapore (in Marina Bay and Sentosa Island) this year. Britain's deregulation of the gaming sector and return on capital re-rating from expansion of non-gaming assets, like energy, also open up opportunities for the group. ECM Libra said in a report that its planned expansion into Macau and China and the listing of its unit Genting International Ltd also placed Genting in a favourable position to win one of Singapore's integrated resort licenses.
MALAYSIA International Shipping Corp (MISC) is well positioned to ride on Petroliam Nasional Bhd's overseas expansion in the oil and gas industry. It targets to expand its fleet of 49 petroleum tankers by an additional six tankers by 2009. In addition, MISC, the single largest local owner-operator of such fleet with an 11% share of the global liquefied natural gas tanker capacity is also sizing up its LNG fleet from 20 LNG to 29 by 2009, said an analyst.
Berjaya Sports Toto, the largest numbers forecast operator (NFO) in the country with about a 39% market share, is set to improve its earnings with the introduction of I-Perm. Analysts said the mix of 4D and non-4D operations had the potential to reach a wider population base, thus providing a balanced punter profile between the older and younger segments of the market. A broker said the NFO also recorded strong cash flows, good yield (over 7.5% per annum) and attractive return on equities at about 20%.
KNM, the equipment manufacturer catering to the petrochemical and oil and gas industries, has an outstanding order book of RM430mil and is bidding for RM3bil worth of projects worldwide. A dealer said KNM was also actively ramping up floor space as demand is ahead of capacity. KNM's recent acquisition of a 51% stake in FBM-Hudson Italiana Spa for RM7.9mil is expected to increase the efficiencies of its high-end process equipment manufacturing process and lead to better profit margins.
Petronas Gas might be the beneficiary of rising domestic demand for gas in the current high oil price environment, said an analyst with UOB Kay Hian Research. He said intra-regional gas transmission volume was expected to rise in the next two years, driven by an increase in gas from the Malaysia-Thai Joint Development Area, and higher gas exports to Singapore this year. The company's net cash position by end-2006 is expected to be RM217mil, a turnaround from the net debt of RM2.98bil in 2001.