The closing price will have to depend on the mood of the market beast...

     which no one can predict or foresee.

          Our (traders) duty is only to tackle the market beast's unpredictable moves...

BUY S$2.28 STI : 3,293.39 by DBS Group Research Equity

Price Target : 12-Month S$2.70 (Prev S$ 2.36)

Reason for Report : Raising TP, 3Q10 Results

Potential Catalyst: Faster ramp-up, award of junket licence, increase in

market share

The Game Has Only Just Begun

•

MBS in market share.3Qresults within expectations. RWS continues to lead

•

ramp-up & higher margins. Junkets could come in as

early as 1Q11.Raised FY10-12F EBITDA by 8-16% to factor in faster

• Maintain Buy, SOP-TP raised to S$2.70 (from S$2.36)

Results in line.

S$216m (-46% q-o-q), on the back of S$348m adjusted

EBITDA (-32% q-o-q) which saw: a) normalization of VIP luck

factor (VIP constituted 55-60% of gaming revenue vs 2Q10’s

60%); and b) absence of monopoly impact (2Q10 had one

month). EBITDA margin remained a healthy 47% (2Q10:

58%), despite higher contribution from non-gaming segment

(10-20% of revenue). Even with MBS ramping up, RWS

remained the market leader with 53% share of revenue and

52% of EBITDA while visitors remained stable at 3m in 3Q10

(~33k/day).3Q10 net profit (ex-exceptionals) came in at

Singapore gaming market still at infant stage,

by Chairman Tan Sri Lim Kok Thay who made his first

appearance at the results conference call. He expects RWS to

continue to lead given its superior product and strong

management. Potential upside could come from junkets (first

licence may be issued in early-2011), and outreach to new

markets. Operations continue to ramp up nicely: 470 gaming

tables have been opened to date (2Q10: 380; full capacity:

560) and should exceed 500 by end-2010, ahead of 450

guided earlier. Universal Studios should also see its visitor cap

lifted to 18k in 2011 from 8k currently with the reopening of

Battlestar Galactica and launch of Madagascar ride in 1H11

along with world’s first Transformers ride in 2H11.as shared

BUY, TP raised to S$2.70.

8-27% to factor in faster ramp-up and higher EBITDA margins

(44-46%). We now estimate Singapore 2011F gaming revenue

at US$5b (US$4.6b previously) - achievable as average daily net

win growth will only need to grow 20% from current levels.

RWS: MBS market share split is expected to be c. 52:48.

Maintain BUY on GENS, TP increased to S$2.70 based on sumof-

parts (valuing RWS at 16.5x 2011-12F EV/EBITDA).

 

Good luck consolidating !We raise our 2010-12F earnings by

There is no substitute for developing your own trading skills...

    But BT can teach you those skills in his coaching...

        after which you should then still have to make your own decisions...  

Tags: Genting Singapore | Genting Singapore Plc

WRITTEN BY DOW JONES & CO, INC

FRIDAY, 12 NOVEMBER 2010 11:11

Share this  Digg  Del.icio.us  StumbleUpon  Netscape  Yahoo  Technorati  Googlize this  Facebook Export PDF Print E-mail Daiwa upgrades Genting Singapore (G13.SG) to Buy from Outperform, lifts target price to $2.93 from $2.06 based on 18x EV/EBITDA vs 15x previously. Says improved operating environment due to duopolistic Singapore gaming market structure, plus lower tax rate, will continue to support company’s operations. Expects softer 3Q10 results vs 2Q10, tips 11% sequential improvement in 4Q10 EBITDA on year-end seasonal effect. Shares last down 5.7% at $2.15.

looking at the BB strategy...... you are right...... they are waiting for people to dump and they buy up.....

if you load enough.... then you can hold it, it should see a profit next week !

Ya loh u are right....mayb is time for u to load up Genting SP .... Too bad i loaded up too early liao before report....

Buy when it dip...