Genting SP: CS maintains O/p, with TP $2.65. Note that sentiment remains weak and investor concerns include regulatory risk and growth potential. 2Q11 results in mid-Aug likely to be a negative catalyst, combination of weak fin mkts and poor results and could potentially hamper short-term share price performance, but view any dips as a potential buying opportunity.
Expect GENS to benefit from: (1) rising tourist arrivals to Spore; (2) positive GDP growth in SG and neighbouring Asian economies from 2011-12; (3) ) a high proportion of local millionaires bodes well for long-term VIP casino revenues; (4) mainland Chinese have become the top foreign purchasers of residential properties in Spore; and (5) robust commodity prices in Msia.
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