Genting HK

Genting HK: CIMB maintains Add rating. Note that GENHK should receive US$375m from the latest secondary placement by Norwegian Cruise Lines (NCL). Estimate that GENHK will have US$1.3bn in cash illustrating its ability to crystallise its RNAV. House cut FY13-15 EPS by 2-6% to factor in GENHK’s reduced stake in NCL but maintain TP which is based on a 20% discount to RNAV as the placement is monetizing NCL’s value. Catalyst is the market cap expansion of NCL and Travellers which account for 67% of GENHK’s RNAV.