Genting Bhd (BUY) - Junket Programmes In RWS

Stock Name: GENTING
Company Name: GENTING BHD

Research House: HLG

Price Call: BUY

Target Price: 11.50

Genting Bhd (BUY)

Junket Programmes In RWS

• According to Business Times Singapore, Casino Regulatory Authority (CRA)has awarded junket licenses to two Malaysians operators to allow casinooperators to extend their international reach.
• The CRA is still evaluating other applications and isin the midst of conducting probity checks. It has rejected twelve applicationsso far.
• With this official permits, these two Malaysianoperators will now be allowed to bring in high rollers to the casinos in RWSfor a commission. However, they are only allowed to bring in foreigners and notallowed to target the local community.
• We expect GenS to be able to experience betterearnings growth going forward with the help of the recently-approved junketlicenses as it will bring in more customers into the casino, especially fromthe VIP segment, hence bring up its market share. MBS still does not haveaccess to licensed junkets.
• No changes made to our forecast. Maintain BUYwith TP of RM11.50.

Source: HLIB Research 23 March 2012