Genting HK

Genting HK: UOB Kay Hian downgrades to Hold with US$0.45 TP. Note that although it is trading at a steep discount to its SOTP valuation, GENHK’s share price is likely to consolidate through most of 2014 as associate RWM enters a more competitive landscape in the Philippines, and as Star Asia sees a heavy investment cycle through the intermediate term. House downgrade to HOLD amid an increasingly competitive casino gaming landscape in the Philippines and as its Asian cruise operations embarks on a capacity expansion programme. TP applies a 15% discount to its SOTP valuation, and implies adjusted 2014F EV/EBITDA of 8.6x (taking into account GENHK’s stakes in Travellers and NCL Corp).