Genting HK

Genting HK: CIMB maintains O/p with US$0.55 TP. House note that FY12 core EPS is 9% ahead of expectation because of lower interest expense at Resorts World Manila (RWM). Underlying operations at its integrated resort were in line, though house had not expected the RWM's interest expense to halve from an interest-rate swap. No change to EPS as house believe the interest savings to be off and our RNAV-based target price is maintained. RWM remains a strong proxy for GDP growth in Metro Manila while GENHK’s cruise operations have a unique footprint in the Asian leisure-travel market. The re-rating of Norwegian Cruise Lines (NCL) since its IPO in Jan 13 is an additional catalyst.