Genting SP: Nomura Reduces TP to $1.71 from $1.59. Expect fine-tuning post 1Q earnings to reflect the abnormal and highly unpredictable VIP win rate in 1Q, raise FY11 earnings by 9.7% to SGD1,114m. Believe calling a spade a spade was never the Genting grp’s culture with regard to earnings guidance….
Add that with novelty factor wearing off and potential tapering off in VIP rolling vol in 2Q11, following an industry-wide investigation claims of irregularity of junket activities. Tip that unlike in Macau, the SG govt has no plans to make SG a gambling hub and expectations on mkt size must be realistic.
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