Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
DMG & Partners Research in a Nov 14 research report says: "The group's annualized 9MFY11 adjusted EBITDA of $1,669.4 million represented 97.4% of our full-year forecast, which we deem largely in line with both our and consensus forecasts.
"We see a stronger sequential 4Q11 performance, partly driven by the holiday season and ramping up of casino and room capacity. The stock, at a FY2012 EV/EBITDA of 10.1x, is trading at a 17% to 21% discount to its Macau gaming peers, which has more than priced in the relatively slower gaming growth in Singapore relative to Macau.
"The eventual legalization of junkets in Singapore, on which management is optimistic on materializing soon, as well as new VIP room capacity coming on stream in 4Q11, may be a key re-rating catalyst. Fair value at $2.14 (13x FY12 EV/EBITDA). MAINTAIN BUY."
Company Name: GENTING SINGAPORE PLC
| Research House: DMG | Price Call: BUY | Target Price: 2.14 |
DMG & Partners Research in a Nov 14 research report says: "The group's annualized 9MFY11 adjusted EBITDA of $1,669.4 million represented 97.4% of our full-year forecast, which we deem largely in line with both our and consensus forecasts.
"We see a stronger sequential 4Q11 performance, partly driven by the holiday season and ramping up of casino and room capacity. The stock, at a FY2012 EV/EBITDA of 10.1x, is trading at a 17% to 21% discount to its Macau gaming peers, which has more than priced in the relatively slower gaming growth in Singapore relative to Macau.
"The eventual legalization of junkets in Singapore, on which management is optimistic on materializing soon, as well as new VIP room capacity coming on stream in 4Q11, may be a key re-rating catalyst. Fair value at $2.14 (13x FY12 EV/EBITDA). MAINTAIN BUY."
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