FY10 results preview
Maintain Outperform. We tweak our FY10 net profit forecast after factoring in lower gross gaming revenue (GGR) following Marina Bay Sands' 4Q10 weaker-than- expected GGR growth (on the back of a 20% qoq decline in VIP rolling). We still expect Genting Singapore to clock in S$378m EBITDA for 4Q. We keep our FY11-12 GGR assumptions as we expect the opening of new attractions at Resorts World to draw more visitors, in turn bumping up its casino patronage. GS remains an OUTPERFORM with an unchanged SOP-based target price of S$2.70. We expect stock catalysts from: 1) a speedier ramp-up of its operations; 2) the licensing of junket operators; and 3) sustained leadership of the gaming pie in Singapore, now estimated at S$4.7bn, down 3% from our original assumption.
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