Tuesday, March 20, 2012

Regional Gaming - Rewarding bets

2012F growth to moderate on higher base, but should remain robust driven by positive macro factors. Large special dividends from Macau operators may be one-off; GENS building up ammunition for new ventures. Sector valuation for Singapore and Malaysia lagging behind Macau. Top picks: Galaxy, GENS & GENT.

Genting; Buy; RM10.80
Price Target: RM13.70; GENT MKAll engines firing

Diversified growth from Malaysia & Singapore gaming, potential wildcard from GENS’ & GENM’s new ventures overseas. Disposal of non-core assets to help unlock value.Maintain Buy & SOTP-based TP of RM13.70.

Genting Malaysia; Hold; RM3.90
Price Target: RM4.10; GENM MKUS ambitions
Malaysia ops regaining ground, RWNY bearing fruit. Wildcards: approval of tables games & casino licence in Miami, but may be challenging in an elections year. Maintain Hold & SOTP-based TP of RM4.10.

Source: HwangDBS Research 20 March 2012

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