Wednesday, June 30, 2010

Genting S’pore

Genting S’pore target price raised by 45% to $1.45 by DB, pegging it at a revised 14x EV/Ebitda. Notes RWS operations are holding up well and maintaining leading position with >50% market share following opening of Marina Bay Sands level due to its loyalty program and aggressive marketing. It estimates RWS has only lost 10-15% of daily gaming revenue suggesting a much bigger gaming market in S’pore of US$4.1bn vs previous estimate of US$3.6bn.

DB is forecasting daily gaming revenue of $7.7m for RWS in 2Q and is raising its FY10 and FY11-12 earnings by 127% and 45% respectively. Near term catalysts are the upcoming 2Q results, the strong tourism numbers and licensing of junkets.

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