Wednesday, February 20, 2013
Genting SP
Genting SP: CLSA maintains Sell with $1.40 TP. House note that following the strong VIP rolling chip volume growth at MBS in 4Q, expectations and Genting’s share price have both risen, it was the top performing index stock. However,would caution that a portion of the growth was driven by a very low win rate, and the the mass market business remained soft. Also expect the additional costs of completing the West Zone to weigh on margins as will the perpetual security funding. Cash flow will improve going forward, but until capital is returned or put to use returns are limited and valuations high.
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