Genting SP

Genting SP: 2Q results weak, at the low end of consensus range. Street lowers target prices.
Revenue fell 21% qoq to $729m.
Adjusted EBITDA fell 34% qoq to $347m (vs consensus $330m-450m).
RWS lost market share to MBS likely to better hotel offering at the latter; RWS’ VIP market share fell from 59% in 1Q to 52% in 2Q, while in the mass market, market share split was 50/50.
Luck factor normalized to 2.66% from an exceptionally high 3.8% in 1Q. EBITDA margin was 49% vs 59% qoq.

The two casinos in Spore generated ~US$2.8b of gross gaming revenue (GGR) in 1H.
Unlike its competitor, mgt remains cautious on the outlook of the Spore gaming market. Citi anticipates Spore to grow at an organic growth rate of 10%, slower than the 40% growth forecast for Macau. Forecasts Spore to generate US$3.1n GGR in seasonally stronger 2H.

Goldman maintains Neutral, cuts TP to $2.00 from $2.10. Notes 2Q volatility may pressure shares but believes the nascent mkt is still ramping up.
HSBC keeps Overweight but lowers TP to $1.99 from $2.22.
JPM keeps Neutral, lowers TP to $1.85 from $2.15.
BOA-ML keeps Buy, lowers TP to $2.15 from $2.60.
But Citi maintains Buy and TP $2.30. Says stock is cheap, at 22% discount to Macau peers. Believes the worst is now over, with catalysts from the 9-day long wkend during 3Q in Indonesia and long wkends during 4Q in Spore and Msia to boost traffic and GGR.
UBS maintains Buy with TP $2.08.