Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Company Name: GENTING SINGAPORE PLC
| Research House: OCBC | Price Call: BUY | Target Price: 1.97 |
GENTING 11 May 2012 |
| 1Q12 slightly below; lower S$1.97 FV - Softer-than-expected 1Q12 - USS and IMA focus for now - Lower S$1.97 fair value; BUY Genting Singapore (GS) posted 1Q12 revenue of S$787m (-14.7% YoY), meeting 21.3% of our full-year forecast - slightly softer than expected. Net profit came in around S$211.5m (-30.9% YoY), or 20.8% of our FY estimate, as overall revenue was affected by lower win percentage and lower business volume in the premium player business. Going forward, management plans to focus on boosting its visitor numbers to its theme park and remains positive on the prospects of IMA over the longer term. Since 1Q12 results were slightly below our forecast, we opt to trim our FY12 estimates by 5-5.3% and FY13 by 2.3-2.4%, noting the impact of IMAs will likely be felt in 2013. This also eases our DCF-based fair value from S$2.02 to S$1.97. And with a sizable cash pile, we believe that an acquisition is likely on the card, although an IR in Japan has slipped down GS' priority list. Maintain BUY. |
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