GenM- benefitted from its UK operation

Results Update

GenM's net profit increased by 15% q-o-q or 53% y-o-y to RM418 million while its turnover increased by 25% q-o-q or 45% y-o-y to RM1.951 billion. The improvement is due to contribution from its UK casino operation.


Table: GenM's last 8 quarterly results



Chart 1: GenM's past 20 quarterly results

Valuation

GenM (closed at RM3.52 yesterday) is now trading at a PE of 14 times (based on last 4 quarters' ESP of 25 sen). At this multiple, GenM is deemed quite attractive.

Technical Outlook

GenM is still in an uptrend line, with support at RM3.50. Its immediate resistance is the horizontal line at RM3.65.


Chart 2: GenM's daily chart as at May 26, 2011 (Source: Quickcharts)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, GenM is a good stock for long-term investment.