Genting SP

Genting SP: Grp has confirmed that it holds a 4.9% stake in Echo Entertainment. Armed with net cash of $1.8b, an acquisition could be on the cards, though CIMB think the domestic approval process and Crown’s 10% blocking stake may prove to be challenges. There are also press reports suggesting that Genting SP could be interested in striking a deal with Crown’s James Packer to secure a foothold in Macau. No change to house earnings, O/p rating or TP. Grp is trading at 7.5x CY12 EV/EBITDA, a 27% discount to its Macau peers. Catalysts are still expected from potential market share gains and the full rollout of Westzone.