Genting SP

Genting SP: Recall yday, we highlighted that GENS mktg chief Mabel Lee was said to have left the casino operator at end Aug. It is believed that she left due to the strategic differences with senior mgt. The industry veteran, who has nearly three decades of casino-hospitality experience, had joined GENS in 2010 to help set up the casino mktg team at its flagship property, She had responsibility over growing the casino's premium-gambler business, among other roles. UOBK does not think that Ms Lee’s departure will significantly drag down RWS' already weakened revenues in 2Q12 and understands that GENS still has a stronger 'power broker' in its int’l marketing division in securing patronage from mainland Chinese VIP players. Nevertheless, its channel checks with Las Vegas Sands suggests poor growth visibility for both the Singapore mass market and VIP segments. The house maintains Hold and TP $1.40, based on 10x 2013 EV/EBITDA but reckons that the shares would slip over time (notwithstanding the potential valuation support from 3Q12's expected seasonal strength), as investor impute a rather flattish trendline for Singapore's gaming industry. Tips trough valuation of $1.15 based on 8x fwd EV/EBITDA.