Genting Bhd (BUY)
Junket Programmes In RWS
- According to Business Times Singapore, Casino Regulatory Authority (CRA) has awarded junket licenses to two Malaysians operators to allow casino operators to extend their international reach.
- The CRA is still evaluating other applications and is in the midst of conducting probity checks. It has rejected twelve applications so far.
- With this official permits, these two Malaysian operators will now be allowed to bring in high rollers to the casinos in RWS for a commission. However, they are only allowed to bring in foreigners and not allowed to target the local community.
- We expect GenS to be able to experience better earnings growth going forward with the help of the recently-approved junket licenses as it will bring in more customers into the casino, especially from the VIP segment, hence bring up its market share. MBS still does not have access to licensed junkets.
- No changes made to our forecast. Maintain BUY with TP of RM11.50.
Source: HLIB Research 23 March 2012
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