Genting SP

Genting SP: While all attractions at GENS have remained open through this crises, visitation to its outdoor water park has dropped. Credit Suisse notes outdoor activity (20% of revenue) may suffer for as long as the haze lasts, but may be compensated by higher “indoor” gaming revenue (80% of revenue). Having experienced an exceptionally weak win rate in 1Q13, the win rate in future quarters should eventually improve and normalize. Additionally, mgt expects potential legislative change in Japan in Oct/ Nov (towards legalizing casino gambling) which could boost sentiment on GENS. The house maintains Outperform on GENS with TP $1.80.