GentingSP: Deutsche maintains Buy at TP$2.43. With recent correction co now trades at low-end of hist EV/EBITDA at 11x, and is a 30% disc to Macau peers (15-16x). Co is fundamentally sound with a positive operating environment with an expected catalyst from seasonally strong 1Q. Co derives approx 60% of VIP play from North Asia and intends to expand VIP table capacity by 33%. Junket approvals are also expected to come in in 2H2011…
House notes high amt of receivables but is not overly concerned due to nature of direct VIP business, operations still in relatively new stage and positive $1.4b operating cash flow. Of interest, parent Genting Bhd has also recently increased its stake by 0.2%.
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