Genting SP

Genting SP: CIMB upgrades to O/p with $1.78 TP. Note that Resorts World Sentosa's (RWS) earnings have bottomed in 2013 and believe that it will stage a strong recovery in 4Q13 and 1Q14. The VIP business will be key driver for this, in addition to the operating leverage of its non-gaming assets which were a drag on ROCEs. House upgrade Genting Singapore (GENS) to an Outperform from an Underperform, and raise FY13-15 EPS forecasts by 5-13% on the back of a healthier VIP business outlook. RNAV-based target price is raised to factor in the re-rating of RWS and option value of its Japan opportunity. Key catalysts will come from its upcoming quarterly earnings and positive newsflow from Japan.