Genting SP

Genting SP: MS maintains Equalweight but reduces TP to $1.50 from $1.80. Notes that consensus has been falling for prev 12 mths but house is still below. Consensus appears optimistic about volume contribution of IMA (junket) licenses. House is of view that stake in Echo is a negative, given that any competition with Crown would take valuations even higher and a joint bid could run into regulatory hurdles. The recent perpetual bonds issuance at 5.1% is deemed high and without a clear use of funds, appears to be negative. Upside risk includes co using its 5-8% FCF yield to increase div payout or enter a new gaming destination.