Genting SP

Genting SP: Read through from MBS 3Q13 performance Marina Bay Sands (MBS) reported adjusted 3Q14 EBITDA at US$352m (-6% y/y, -16% q/q), as VIP volumes declined to US$9.1b (-34% y/y, -13% q/q). Meanwhile, the mass market held steady, as slot volume grew 13.1% y/y and 2% q/q to US$3.1b, while MBS’ hotel business continued to fare well, with occupancy at 99.4% (-0.4 ppt) and average daily room rate rising to US$468 (+16.7%). MBS’ EBITDA margin was at 47.8% (-0.5ppt). Maybank-KE expects Genting SP (GENS) 2H14 VIP volumes to fall markedly y/y, no thanks to tight credit conditions in China. However, the house believe volumes will recover in 2015 as the Chinese government has begun to ease credit conditions The house has a Hold rating on GENS with a TP of $1.13. For the upcoming 3Q13 results, the street is expecting GENS to post revenue of $800m and EBITDA of $355.5m.