Genting: Analysts note that Genting is poised in 2011 to give Las Vegas Strip & Asian region's 2 biggest mkts, S Korea and Australia, a run for their money, highlighting the speed at which SG’s gaming mkt ramped up this yr, tipping momentum to continue into 2011 as the IRs expand their shopping and entertainment offerings….
Citi highlights SG gaming run rate cld hit US$5.3b next yr vs Las Vegas Strip's est run rate of US$5.8b, while 1Q nxt yr could see the anticipated licensing of junket operators which may result in SG’s VIP mkt doubling in 2011….
CLSA note that if good quality junkets are licensed, VIP volume could surge to US$6bn nxt yr vs US$2-2.5b on an annualised basis currently. Add that it may be premature to expect Genting to issue dividends 2011, but potentially expect a huge dividend to be paid in 2012, as debt would have been paid by then...
Highlight that cashflow generated from RWS is enormous and will be sustained given the large SG gaming mkt with limited competition and low risk of new supply & low tax rates.