Genting SP: UBS maintains Buy with $2.08 TP. Note that despite the perception that growth has been lacklustre, believe SG gaming mkt will experience strong growth in Q3 both sequentially and yoy. Expect mass mkt to enjoy yet another qtr of 6-8% sequential growth, with yoy growth of 26-28%.
VIP qtrly trends remain volatile but special events, an acceleration in outbound travel from China, together with timing of public holidays in ASEAN, should boost vol. Tip RWS should see renewed VIP growth and accelerated growth in mass. Expect mkt share to continue to normalise- while the VIP ‘growth hangover’ may still mean MBS grows more rapidly. Reconfiguration of mass floor and addition of ETG’s should allow for better sequential mass growth vs Q211.
Estimate RWS margin is 600-700bp lower than MBS, mainly attributable to lower VIP margin and lower non-gaming revenues/margin. In terms of VIP provisioning, MBS remains more
‘under-provisioned’ than RWS, with c12% reserved v 18% reserved at RWS.
Seperately, Moody’s remained upbeat abt SG gaming rev and forecasts double- digit growth over next 12-18 mths. Add that Heavy visitor inflows, supported by the gaming resorts, and key events such as the Formula One Grand Prix will continue to benefit this sector in the remainder of 2011. This trend, in turn, will support leisure and gaming spending.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment