Genting HK: may feature strongly today, after reporting 9MFY10 P&L for 50% associate, Travellers Int’l (which holds the Resorts World Manila integrated resort) for the first time.
Strong quarterly improvement, as 3Q10 associate contribution surged to ~US$18.4m, vs just US$10.2m for the whole of 1H10….
Travellers reported gaming revenue of P$9.8bn, which translates to avg gaming rev of US$820k/day. Daily visitorship has improved to ~10k, from 7-9k in 1H10.
Mgt previously hinted that there is much more potential for RWM to ramp up, eg. upcoming opening of third floor all-VIP casino, which could raise table games capacity by 20% and further lift avg gaming revenue…
UOBK raises target to US$0.39 from US$0.31, noting recent data supports higher earnings expectations for RWM. But downgrades from buy to Hold. Notes risk of market share erosion as competition from Manila Bay casino concessions could set in as early as 4Q12...
Technically, stock appears to be consolidating after retreating from high of $0.55. Support at $0.40, resistance at $0.465 (20 MA). Further downside may be limited as stochastics are in oversold territory, while most other indicators read as neutral to slightly positive.
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