Genting Singapore independent director Koh sells all his shares — as is his usual practice

Genting Singapore independent director Koh Seow Chuan has been a board member since 2008. However, judging from his past behaviour, the retired renowned architect prefers not to hold shares in the company. According to a May 13 filing with the stock exchange, Koh sold all his 125,000 shares on May 10. The shares were awarded to him less than three months ago as part of the company’s performance share scheme for its board of directors and employees.

Koh sold the shares on the open market for $116,250, which translates into an average price of 93 cents a share. As he also received a dividend of two cents a share (Genting shares went ex-dividend on May 2), his total gain was 95 cents apiece. Koh received the shares on Feb 22. Based on the day’s market closing price of $1.07, they were valued at $133,750.

Koh is a leading name in the local architectural circle and founder of DP Architects. His masterpieces include the iconic Esplanade — Theatres on the Bay. He retired from the firm in 2004 and was first

appointed to Genting’s board on May 12, 2008.

Incidentally, this is not the first time Koh has sold all his Genting shares shortly after he was given them by the company. On April 18, 2018, he sold all 125,000 shares he held then for $148,750, or $1.19 each, just over a month after receiving them under the company’s 2018 performance share scheme. Based on the March 5, 2018 closing price of $1.15, those shares were worth a total of $143,750. If Koh had waited two more weeks, he would have made another two cents a share — the shares went ex-dividend on April 30. Similarly, in 2016 and 2017, Koh sold all the shares awarded to him at various points in time.

The quantum of shares awarded to Koh in February this year was the same as the other independent directors. Tjong Yik Min, Jonathan Asherson and Carolina Chan Swee Liang were also given 125,000 Genting Singapore shares each. Two non-independent directors were given more shares — Lim Kok Thay, the company’s executive chairman whose family controls the Genting conglomerate, was given 750,000 shares; Tan Hee Teck, who is also Genting Singapore’s president and chief operating officer, was given 2.25 million shares.

Genting Singapore’s shares closed on May 16 at 90 cents, down 7.7% year to date. At this level, Genting Singapore has a market value of $10.85 billion and is trading at 14.59 times historical earnings and 15 times forward earnings.

The company’s key operating asset is the Resorts World Sentosa integrated resort (IR). A decade after its launch, RWS will soon start on a massive expansion and refurbishment programme that costs $4.5 billion.

For FY2018 ended Dec 31, Genting Singapore reported earnings of $755.4 million, up 10.2% from the previous year. Revenue in the same period increased from $2.39 billion to $2.54 billion. For 1QFY2019 ended March 31, the company reported earnings of $205.5 million, down 5% y-o-y. Revenue in the same period was similarly down 5% y-o-y, to $640.4 million. The drop can be attributed to the 8% y-o-y decline in gaming revenue during the quarter, from $467.3 million in 1QFY2018 to $430.2 million in 1QFY2019. Non-gaming revenue, meanwhile, held steady — up 1% y-o-y to $209.3 million.

Genting Singapore is in the process of preparing to submit proposals to the various Japanese cities keen to set up similar IRs following changes to the law last year that allows casinos to operate.