Wednesday, July 11, 2012

Genting: Maintain Hold - Maiden Power Foray Into Indonesia

Unlikely to excite. Genting's 95%-owned PT Lestari Banten Energy entered into a 25-year PPA with PT PLN for a 660MW coal-fired Banten IPP. Although this will raise Genting's total net generating capacity by 39%, we estimate that it will add <2% to our SOP/share valuation. We retain our estimates for now on this development. We however lower our earnings estimates to account for lower contributions primarily from 52%-owned Genting Singapore (GENS) on a separate development. Maintain HOLD, with TP trimmed to from MYR10.14 to MYR10.00.

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Source: Maybank Research - 11 July 2012

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