- Affirm BUY on Genting Bhd with an unchanged RNAVbased fair value of RM11.15/share.

- Genting Bhd’s annualised 1QFY13 core net profit was below our expectations and consensus estimates due to Genting Singapore’s (GenS) weak results. Recall that GenS’s core net profit fell 53% YoY in 1QFY13 due to a fall in the win percentage in the VIP segment.

- In spite of GenS’ soft results, the latter was still the largest earnings generator in Genting Group in 1QFY13.

- GenS accounted for 52.1% of Genting Bhd’s leisure and hospitality EBITDA in 1QFY13 while Genting Malaysia (GenM) accounted for another 39.3%.

- The balance 8.6% of the group’s EBITDA came from the casino units in UK and New York.

- The power division recorded a 139.9% YoY increase in EBITDA in 1QFY13 underpinned by a higher despatch from the Meizhouwan power plant in China and construction revenue from the power plant in Indonesia.

- We understand that Genting Bhd is currently carrying out development works at the coal-fired power plant in West Java.

- Genting Bhd had already signed the power purchase agreement for Banten Power Plant with the authorities.

- The group has also finalised a US$730mil loan for the construction of the power plant.

- The Banten power plant is scheduled for completion in FY16F. Hence, it should commence operations in FY17F. The power plant is expected to command capacity of 660MW upon completion.

- There are no updates on “Resorts World Las Vegas”(RWLV).

- We understand that consultants are currently working on the design and development plans of the project for submission to the authorities. The reported cost of the project of US$2bil to US$3bil has not been confirmed yet.

- On the other hand, GenM’s “Resorts World Bimini” is targeted to open in 3QFY13. The casino resort, which is estimated to cost US$100mil, would have about 20 tables and 100 slot machines.

Source: AmeSecurities