2010年2月
12
星期五
农历庚寅木年 十二月大 廿九日
戊寅土(季冬)月 癸巳水娄平日
本日物候：蛰虫始振
岁煞东 蛇日冲(丁亥)猪
九星：三碧-轩辕星(木)-安神
宿名：西方娄金狗-吉 六曜：先胜
值日：天德(黄道日) 五行：常流水
彭祖百忌：[癸不词讼 巳不远行]

Last 2009 June I have brough $ 0.68 and sell during sep at $ 0.80. I have wait for Five this baby did not gobelow $ 1.02 . currently is between $1.05 - $ 1.18.

now all European stock market up . So Tomorrow Asia stocks will up.

aiya...tis kind of news should out b4 5pm mah..let ppl rush n buy in

den can close high highhhhh...best TP $2 haha

RADING BUY MaintainedSecond visit to RWS

Maintain Trading Buy.

some 40 buy-side analysts and fund managers from Malaysia and Singapore. We

came away from our second half-day tour still generally impressed by what we saw.

We were encouraged to learn that the gradual ramp-up of the hotel room inventory is

on track. Although we were on site only fewer than 10 days ago, the progress of work

was visible. Festive Walk has, since 1 Feb, been opened and there was noticeably

less finishing work at Universal Studios Singapore (USS). We continue to believe that

the casino and USS could debut in time to capture Chinese New Year festivities. No

change to our FY09-11 core earnings estimates and sum-of-the-parts target price of

S$1.50.Last Friday, we toured Resorts World Sentosa (RWS) with

RWS visit

Last Friday, we toured Genting Singapore’s RWS with some 40 buy-side analysts and

fund managers from Malaysia and Singapore. Our half-day tour took us through its

key areas: hotels, retail portion, casino and USS. Our visit ended with a brief

presentation and Q&A session with Genting Bhd’s head of strategic investments and

corporate affairs, Dato’ Justin Leong.

Tour

A similar walkthrough.

first one on 26 Jan when Genting Singapore’s management hosted 20-plus sell-side

analysts. We started off at RWS’s convention centre, where we saw its column-free

ballroom, which could fit up to 7,300 people, being partitioned for a smaller even

Q&A session

Genting Bhd’s head of strategic investments and corporate affairs, Dato’ Justin Leong,

gave a quick presentation before dinner. For us, there were no major revelations,

apart from slightly more details on Genting Plantations’ plans to operate premium

outlet stores in Johor. Questions fielded were mostly RWS-related.

When are casino and USS opening?

of the casino licence, which has since been issued, and opening dates for the casino

and USS were hot questions. Echoing our previous session with RWS’s president and

CEO, Tan Hee Teck, two weeks ago, the answer to theses queries was ‘soon’. But

given Saturday’s award of Singapore’s first casino licence and the fact that it would

only take 2-3 days for the casino to convert from trial to live mode, we believe a

Chinese New Year debut remains possible. Some press reports yesterday even

suggested that the casino could open by the end of this week, which would coincide

with the first day of the Lunar New Year on Sunday.For Genting Singapore, the timing of the award

What will happen to Genting Malaysia?

Malaysia’s Resorts World Genting (RWG) was raised. While indirectly acknowledging

that cannibalisation is inevitable given the novelty of Singapore’s new integrated

resorts, management pointed out that both properties actually appeal to different

market segments with price points being the key differentiating tool. More importantly,

RWG’s strong day-trippers market should help contain the degree of cannibalisation,

beyond the initial novelty period.The issue of the cannibalisation of Genting

Excited about premium outlets in Johor.

prospects for Genting Plantations’ upcoming premium outlet mall in Johor. We gather

that Genting Plantations’ partner, Simon Property Group, is already successfully

operating about 60 such outlets worldwide. While such a business model is new in

Malaysia, it has been a success particularly in the US. Phase 1 of this project, which

will feature about 80 outlets, is expected to be operational by 2011. Genting

Plantations’ investment outlay is small at just RM150m+ and this will be funded by a

combination of debt and equity.Management remains upbeat on the

Looking at opportunities in the US.

group’s continuous efforts for M&A opportunities, particularly in the US. This is not

surprising given that group chairman, Tan Sri Lim Kok Thay, recently singled out the

US as a potential expansion market for the group. At the same time, management

acknowledged that current valuations could be inflated. Alongside a still-difficult

operating environment, any potential deals are likely to be medium- to long-term in

nature.During the presentation, we were drawn to the

Valuation and recommendation

Still generally impressed.

what we saw. We were encouraged to learn that the gradual ramp-up of the hotel

room inventory is on track and yet, hotel bookings remain solid. Feedback from the

attendees was mixed on the feel and façade of the property, particularly the hotels.

But most agreed that USS will be a key attraction for RWS. Also, most of the

participants concurred with our earlier view that the casino and USS are ready to

welcome their first customers.We came away from our tour still generally impressed by

Closer to the finishing line.

we could visibly observe progress. Notably, Festive Walk is now a new attraction in

RWS, in addition to the four hotels and high-end retail area, Galleria. We were also

encouraged to see much lesser finishing work at USS and more attractions and

restaurants taking shape within the theme park. Additional signboards have been put

up within the premise to ease navigation. We continue to believe that the casino and

USS could debut in time to capture Chinese New Year festivities.Although we were on site only fewer than 10 days ago,

Reiterate TRADING BUY.

sum-of-the-parts target price of S$1.50. Retain TRADING BUY on the stock with nearterm

catalysts still expected to come from short-term positive news flow on RWS. After

the award of the casino licence, we believe further share-price triggers could come

from: 1) the opening of the casino and USS, especially if it coincides with Chinese

New Year; 2) a stronger-than-expected debut; and 3) a longer-than-expected No change to our FY09-11 core earnings estimates andOur two-hour plus tour last Friday was quite similar to our