Genting Singapore [%zNDJ%] 
Research by HLG
BUY (Maintain); Target Price SGD1.14

"The race for Osaka becomes tighter "

GenS’ 3Q19 core net profit of SGD155.2m (-6.5% QoQ, -26.5% YoY) was below our expectations largely due to higher than expected depreciation costs coupled with our expectation of 3Q to perform seasonally stronger. No dividends were declared. We gather that there are approximately 3 operators left in the run for the Osaka bid (MGM Resorts, GenS, and Galaxy Entertainment) from the initial 7 operators which registered. We lower our earnings by -6.1%/- 7.7%/-6.8% as we impute higher depreciation expense. Maintain BUY with a lower TP of SGD1.14 (from SGD1.17) based on a FY19 EV/EBITDA multiple of 9x .

Andrew Lim Ken-Wern
[%rmit%]
(603) 2083 1730

Genting Singapore $SGX-G13 
Research by HLG
BUY (Maintain); Target Price SGD1.14

"The race for Osaka becomes tighter "

GenS’ 3Q19 core net profit of SGD155.2m (-6.5% QoQ, -26.5% YoY) was below our expectations largely due to higher than expected depreciation costs coupled with our expectation of 3Q to perform seasonally stronger. No dividends were declared. We gather that there are approximately 3 operators left in the run for the Osaka bid (MGM Resorts, GenS, and Galaxy Entertainment) from the initial 7 operators which registered. We lower our earnings by -6.1%/- 7.7%/-6.8% as we impute higher depreciation expense. Maintain BUY with a lower TP of SGD1.14 (from SGD1.17) based on a FY19 EV/EBITDA multiple of 9x .

Andrew Lim Ken-Wern
kwlim@hlib.hongleong.com.my
(603) 2083 1730