Genting Singapore

Genting Singapore (GENS): According to CIMB, MBS operating numbers for 2Q13 showed that it was very much business as usual. The VIP market continues to be very narrow, driven by credit and high betting limits. The mass market business continues to struggle for growth as yields have been maximised and there is limited scope for capacity expansion. GENS will report its 2Q13 on 6 Aug. CIMB are expecting $308m adjusted EBITDA (+1.8% y/y) and $156m net profit (+12.8% y/y). House are assuming that GENS pulled back on VIP credit following the cautious outlook by management in 1Q13. However, if it maintained VIP liquidity, GENS is likely to beat its 2Q13 estimate. CIMB has an UNDERPERFORM rating with TP of $1.08.