Genting SP

Genting SP: is reported to be in talks with the Osaka govt on plans for a 500b yen (US$4.8b) casino resort. Although the Japanese government has yet to pass the legislation, Osaka Prefecture Governor Ichiro Matsui was quoted as saying “it’s a matter of time before casinos are legalized”. While GENS has expressed interest in developing and operating an IR in Japan, OCBC notes that it will still be quite some time before these casinos in Japan materialize. Furthermore, all the major gaming companies like Caesars, MGM and LV Sands are also in discussions with the Osaka govt , suggesting that the competition for the initial project is likely to be very keen indeed. For now, the house maintains its HOLD rating and TP $1.48 . Note that Genting will be announcing its 4Q13 results on 20 Feb after market close.