(GENM MK/SELL/RM6.05/Target: RM5.15)

2Q17 EBITDA disappointed again despite a healthy 7.5% qoq improvement in revenue of its flagship Malaysian operations, which the company blamed on higher operating and pre operating costs related to the GITP project, as well as poorer luck factor. Downgrade to SELL from HOLD, to reflect the share price’s 10% run-up since our call upgrade, and impairment risk related to its US$347m financing exposure for a US Indian tribal casino project. Target price: RM5.15.

Source: UOB Kay Hian Research - 25 Aug 2017