Genting Singapore

UOBKayhian on 21 Feb 2014

FY14F PE (x): 24.4
FY15F PE (x): 26.7

Adjusted EBITDA was below expectations. Genting Singapore (GENS) reported 4Q13
revenue of S$692.9m (-11% qoq, -13%yoy) and EBITDA of S$250.3m (-28% qoq, -32%
yoy). This brings 2013 EBITDA to S$1,158.2m, accounting for 93% of our full-year
forecast, and 91% of consensus forecast.

Downgrade to SELL with SOTP-based target price of S$1.27 as investor enthusiasm for
Japan could have moderated with the latest guidance on timeline, and the lacklustre
domestic operations. On top of 12x 2014F EBITDA, we have incorporated a 10 sen
‘Japan option value’ into our target price, based on 30% success rate. Due to our longdated
view on Japan, we suggest investors to capitalise on any share price strength
stemming from the liberalisation newsflow.