Genting SP

Genting SP: JPM remains Underweight with TP $1.21. Management remains cautious and expects the next two to three quarters to remain challenging, with soft VIP demand and flattish mass and slot growth. The house sees demanding valuation (24x FY14E P/E), given soft growth expectations, and believe it is still early to price in significant value for the Japan project given its uncertainties and remoteness. Believes GENS’s weak earnings quality (less mass contribution and credit-driven VIP growth) may limit room for re-rating