Genting SP

Genting SP: 3Q11 results came in below expectations.
Net profit was $210m, +15% yoy, -14% qoq, below consensus of $276m.
EBITDA was $375m, +8% yoy, +7% qoq, but below consensus estimates of $402m. The result included a high win rate on VIP which came in at 3.2% vs theoretical of 2.85%, which likely boosted EBITDA by an estimated $25m, though this was offset by direct premium provisioning of $37.8m.

Gross gaming revenue (GGR) grew 39% yoy to $2095m, +15% qoq. The strongest segment was VIP gaming, growing an estimated 50% yoy, driven by play from greater China.
The second strongest segment was mass table games at 31% followed by electronic gaming machines at 16%.
MBS likely secured 54% mkt share of GGR and 59% mkt share of EBITDA.

Street ratings and TP remain largely unchanged.
HSBC keeps at Overweight with TP $1.99. expects RWS to see a boost in operational performance in 2013 following the resort’s completion in late 2012. Says the Spore mkt is on track to reach $7.9b in 2011.
Credit Suisse maintains Outperform with TP $2.50.
JPM maintains Neutral with TP $1.95.
Nomura maintains the sole Reduce with TP $1.41.