Company Name: GENTING SINGAPORE PLC
| Research House: Maybank Kim Eng | Price Call: HOLD | Target Price: 1.40 |
Maybank Kim Eng downgraded casino operator Genting Singapore to 'hold' from 'buy' and cut its target price to $1.40 from $2.00, after the government proposed to toughen its casino laws.
By 10:04 a.m., Genting shares were 1.1% lower at $1.39, and have fallen about 8% since the start of the year, compared to a 12% rise in the Straits Times Index.
The proposed amendments to Singapore's Casino Control Act will likely be detrimental to Genting's VIP volumes, if passed, Maybank said.
The brokerage also said if international marketing agent commissions, which the casino regulator may be empowered to cap, are set below regional averages, IMAs will encourage their VIPs to gamble elsewhere.
Part of the proposed amendments will allow also the regulator to impose a fine of up to 10% of annual revenues generated by operators Las Vegas Sands and Genting, local media reported on Saturday.
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