Genting SP

Genting SP: CLSA says the stock is “a bit rich for now”, keeps at Underperform with TP $1.33. Notes gaming volume has been under pressure this yr, evident from the decline in volumes in 3Q. With hotels near full occupancy, CLSA says there is less room for GENS to grow the foreign mass mkt they are targeting. Adds the Spore mkt is entering a seasonally slow period with local gamblers staying at home for family duties. Given the slower growth outlook, believes that the valn premium attained by GENS in the past will decline and returns now look to struggle to keep up with Genting Msia (GENM). CLSA tips GENM at Outperform, notes GENM now trades at half the valn multiples of its Spore cousin.