Invest and making Money is so easy and simple! Making a toast to life, passion and health, and remember our good fortune and wealth.
Tuesday, July 30, 2013
Genting Malaysia - one of international stock to play
The news came out, this time, Genting Malaysia
plan to invest over RM400 million to build the world's first Twentieth
Century Fox Theme Park to replace the current old one. (involve RM3 Billion in capex spread over next 5 years) What's so special with this Theme Park?
Perhaps we need to wait till 2016 then go and experience it, first in the world?
I have never see it anywhere! The programme will include the
construction of additional 1,300 hotel room to cater for the increase
The chairman, Tan Sri Lim Kok Thay is always
think big. In the big river, back wave is always push the front wave,
his dream is even bigger than his father. That is the reason I always
think that Genting Malaysia is having potential to grow bigger
especially you see how they expand their casino in US. .
The current theme park
was 25 years already, it's time to give it a new look. As in the region, we can see Legoland and Universal Studios Singapore attract many visitors currently. The story tell by Mr Chairman, that the latest
project with Fox will double the number of visitors from 3 million
people currently. (I doubt if the visitor really can maintain at 6 million say for the next 10 years!) Anyway, I think for the first and second year, it will do exceptional well because of the novelty effects. For Malaysian, if they were to look for somewhere cool for holiday, beside Cameron Highlands, Genting Highlands will be another good destination. This is big project, similar to Disney land for
Malaysia, so think Big is alright! (Maybe someone will think as if the Chairman hint that the profit may double?)
Another interesting point I want to know is how much they intend to sell the ticket for new Theme park? The current ticket price is RM53 per person. The Legoland is RM120 and Universal Studious Singapore is SGD96. (RM245) Assume they price the new ticket at RM100 and manage to double visitors from current 3 million to 6 million, then the new theme park's revenue will increase to at least 4x compare to current old one!
The Chairman look like doing a good job, the
company sure doing well in the coming years. Those who trade (not
invest) in this company will continue to make good profit if they know
how to trade the share according to market conditions. This may view as bad news for investors as well, as the company's dividend may be cut to reduce when their project start. The
way I look at it, well, it's the wisdom of the chairman, plan for the
worst case that could happen when you are doing well, or Chinese say,
For Trader in the market, think of the worst case scenarios if you are in
the midst of enjoying the party, good luck!