Genting HK

Genting HK: UOB Kay Hian upgrade to Trading Buy with US$0.49 TP. Factoring in NCL’s sustained values and longer-term fundamentals, and imputing a narrower 10% discount (previously 20%) to revised our RNAV US$0.55. The current share price weakness presents good upside potential to house revised SOTP target price, and expect a resurgence of interest in GENHK with Travellers revisiting its IPO plans soon. Although Travellers could be seeking a much lower IPO market capitalisation of US$4b-6b (previous IPO attempt thought to be US$6b-8b), fetching such a potential valuation still creates significant shareholder value for GENHK.