Genting HK

Genting HK: Macquarie expects GENHK to report strong 1H12 results, noting that its 50%-owned Norwegian Cruise Lines 1H12 showed a remarkable profit improvement of 114% even though 1H is usually loss-making for cruise-liners as they book advance bookings' costs upfront. House sees upside risks to its FY12 estimates as 3Q is seasonally NCL's strongest quarter. It expects 50%-owned Resorts World Manila to book 2Q12 profit of US$35-45m and estimates GENHK to turn in 1H12 earnings of US$72m, +15% yoy. The results are due end-Aug. Macq is advising investors to put GENHK back on the radar screen, highlighting that although its subsidiaries continue to perform well, the stock is down 20% in the last 3 months and presents an extremely attractive risk/reward at this price point. It values GENHK's cruises and other businesses at US$0.31/share, suggesting the RWM exposure is "free." It rates the stock Outperform with US$0.47 target.