Genting SP

Genting SP: may come into focus, as Las Vegas Sands’ results offers broadly positive read-through into the Singapore market. LVS management noted strong financial results in Singapore, with meaningful growth in gaming and non-gaming revenues. Marina Bay Sands delivered a record US$18.2b Rolling Chip volume, +42.2% y/y, +10.5% q/q. Meanwhile, Non-Rolling Chip drop increased 2.4% y/y to US$1.19b, and slot handle inched up 1.6% to US$2.79b. EBITDA at US$396.8m was up 31.2% q/q, but down 16.0% y/y, with the lumpiness due to luck factor (Rolling Chip win 1Q13: 2.51%, 4Q12: 2.14%, 1Q12: 3.58%). The high margin hotel room and mall segments continued to reflect strong revenue growth, with occupancy remaining high at 98.5% during the quarter. We note BOA-ML’s upgrade to Buy last wk, with TP $1.81, citing that earnings have hit a trough and could surprise in the next few quarters. AmFraser however, while acknowledging positive read-through from MBS’ results to GENS, maintains Sell on the latter due to demanding valns. GENS will release 1Q13 results today after mkt.