• Our OVERWEIGHT call on the regional gaming sector reflects mainly our
BUY calls on Macau gaming stocks, SJM Holdings and Wynn Macau.
• Within the Genting Group, we expect GENHK’s (BUY) share price to
cruise into new year’s high even though it has risen 55.8% since our
recent initiate coverage. Target price raised to US$0.31.
• GENT (HOLD) remains the cheapest proxy to Resort World Sentosa, and
we have raised our target price to RM8.40.
• Maintain SELL on GENS although we may raise our fair price. We
recommend selling GENS on strength RWS’ earnings could have peaked in 2Q10.
• Maintain SELL on GENM but we lift our fair price from RM2.12 to RM2.61
after it clinched the Aqueduct racino project which partly addressed
concerns over management’s poor capital initiatives which include the
latest proposed pricey acquisition of Genting UK which is subject to shareholders approval by end-August.
Risk:
- Slowdown on the economy
- Further related transactions between the Group or M&A
Source: OUB KayHian
