Friday, 15 August 2014

Genting Singapore

UOBKayhian on 15 Aug 2014

Within expectations. Genting Singapore (GENS) reported 2Q14 revenue of S$751.0m
(- 9.4% qoq, +6.1% yoy) and EBITDA of S$313.8m (-21.6% qoq, +1.0% yoy). 1H14
EBITDA came in at S$714m, accounting for 55% of our expectation. We deem the
results in line with our expectations as we expect a softer 2H14 due to a challenging
macroeconomic outlook.
Maintain HOLD and SOTP-based target price of S$1.32, implying 2015 EV/EBITDA of
12x. Due to saturated domestic operations, share price would remain range-bound until
we obtain further newsflow on Japan gaming liberalisation. Additionally, consensus’
numbers seem slightly optimistic although we note that current share price weakness
may have priced in such a possibility. Entry price is S$1.20.

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