Genting SP

Genting SP: CIMB maintains ADD with $1.87 TP. The house notes that GENS’s US$2.2b investment in an IR in Jeju Korea is in line with its view that the Genting group is aggressively venturing into new markets, one of the key themes in our 2014 Gaming Navigator and a key catalyst. Given its $4.3bn in cash, GENS still has the balance sheet strength to follow up on its Japan interests. The house FY13-15 EPS forecasts are unchanged but raise its RNAV-based target price by $0.o9 to factor in the NPV of the Jeju IR (15% ROCE).