November 26, 2010

GENM - OSK Research maintains Neutral on Genting Malaysia, higher TP RM3.24

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD
Research House: OSK

KUALA LUMPUR: OSK Research said Genting Malaysia Bhd reported 9MFY10 earnings that were largely in line with its full-year estimates.

'We are maintaining our NEUTRAL recommendation but confer a higher TP of RM3.24 as we roll forward our valuations to FY11, although pegging the same 8x EV/EBITDA to its domestic casino business,' it said on Friday, Nov 26.

OSK Research said its fair value imputed a 10% discount on RNAV. The group's relatively attractive valuations of 6x EV/EBITDA vs the regional average of 10x will help to anchor its share price.

'Nonetheless, we continue to prefer its parent company, GENTING BHD [], as a proxy to Genting Singapore's more compelling growth story,' it said.


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