A Deeper Look Into The Genting Group

Most investors in Singapore know about the Genting Group through the aplty-named multi-billion tourist attraction located at Sentosa Island, Resorts World Sentosa.

However, the integrated resort, which is owned by the Singapore-listed Genting Singapore PLC (SGX: G13), represents only one segment of the Genting group of companies. In fact, the main holding company, Genting Berhad (KLSE:3182.KL), listed on the Kuala Lumpur Stock Exchange, is one of the largest conglomerates in Malaysia.

Genting Berhad’s business interests stretch from leisure & hospitality to property development, agriculture, biotechnology, and even energy and oil & gas. In this article, let’s take a deeper look at the whole Genting family.

Source: Companies’ annual reports (FY2014)
Source: Companies’ annual reports

Genting Singapore is one portion of the entire group’s leisure and tourism business. With a focus on integrated resorts (a combination of casinos, hotels, and various other attractions like theme parks), Genting Singapore is now developing a new project in South Korea, the Resorts World Jeju, which is expected to open in 2017. Beyond South Korea, Genting Singapore is also looking at opportunities in Japan.

Genting Berhad holds other tourism-related businesses through Genting Malaysia Berhad (KLSE:4715.KL). The latter owns and operates its flagship Genting Highlands resorts in Malaysia. It also has gaming interests in the United Kingdom, United States, and Bahamas. Genting Malaysia Berhad is also the largest shareholder of Genting Hong Kong Limited (SGX: S21), the operator of a leading cruise line, Star Cruises.

The agriculture and property interests of Genting Berhad come from its 52.6% ownership of Genting Plantation Berhad (KLSE.2291.KL), which is one of the largest palm oil plantation owners in Malaysia and Indonesia with a landbank of over 245,000 hectares. To put that into perspective, the land area of Singapore is around 72,000 hectares. The company has also developed properties on agricultural land that have already matured in value.

Lastly, Genting Berhad has made significant direct investments into the energy and oil and gas sectors.

The largest shareholder of Genting Berhad is Kien Huat Realty, an investment holding vehicle for the Lim family. Understanding the entire Genting group’s structure would allow investors to have a better grasp on some of the business decision that are made by each company’s management teams.

Furthermore, by looking at the past decisions the Genting group has made, investors would be able to analyse if the conglomerate has been fair to minority investors of any of the listed Genting group of companies.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.