Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
15 August 2011: Genting
Summary: Genting Singapore's (GS) 2Q11 results came in slightly softer than expected. Revenue fell 17% YoY and 21% QoQ to S$728.7m, or around 2.8% shy of our forecast, mainly due to "unfavourable win percentage" in the premium player business. Reported net profit was down 39% YoY and 20% QoQ to S$243.2m; but excluding discontinued operations in 2Q10 and fair value adjustments, core net profit came in at S$243.3m, down 22% YoY and 21% QoQ, but about 3.0% above our forecast. In line with the slightly mixed 2Q11 numbers, we pare our FY11 revenue estimate by 4.6% and earnings by 2.9%; but we continue to believe that GS should enjoy a seasonally strong 2H11, driven by the year-end holidays. And with GS planning to repay S$400m of debt in 2012, it will have an impact of reducing our DCF-based fair value from S$2.53 to S$2.42. But given that there is still 40% upside, we maintain our BUY rating.
Company Name: GENTING SINGAPORE PLC
| Research House: OCBC | Price Call: BUY | Target Price: 2.42 |
15 August 2011: Genting
Summary: Genting Singapore's (GS) 2Q11 results came in slightly softer than expected. Revenue fell 17% YoY and 21% QoQ to S$728.7m, or around 2.8% shy of our forecast, mainly due to "unfavourable win percentage" in the premium player business. Reported net profit was down 39% YoY and 20% QoQ to S$243.2m; but excluding discontinued operations in 2Q10 and fair value adjustments, core net profit came in at S$243.3m, down 22% YoY and 21% QoQ, but about 3.0% above our forecast. In line with the slightly mixed 2Q11 numbers, we pare our FY11 revenue estimate by 4.6% and earnings by 2.9%; but we continue to believe that GS should enjoy a seasonally strong 2H11, driven by the year-end holidays. And with GS planning to repay S$400m of debt in 2012, it will have an impact of reducing our DCF-based fair value from S$2.53 to S$2.42. But given that there is still 40% upside, we maintain our BUY rating.
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