Wednesday, February 8, 2012

Genting Malaysia: Maintain Hold Hasta la vista Miami (See you later Miami)

Better luck next year. As the “destination resort” bill for 2012 was all but terminated last Friday, Genting Malaysia (GENM) is unlikely to receive a casino license in Miami this year. The bill may be reintroduced in 2013 but with the overall unemployment rate in the United States falling to a three-year low, its appeal will likely diminish. Our RNAV-based TP incorporates 24 sen/sh cost of the Miami property, without the earnings potential. Maintain Hold and RM3.88 TP for now.

Maybank Research 8 Feb 2012

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