Kenanga Research has OUTPERFORM call on Genting Bhd

KUALA LUMPUR: Kenanga Research resumes coverage on Genting Bhd with OUTPERFORM recommendation at a target price of RM12.68 per share, based on 10% discount to its sum of parts (SOP) valuations. Genting is is one of the few Malaysian's world-class companies around, yet with attractive valuation. Trading at calendar year (CY) 12 11.4x price earnings ratio (PER), Genting's valuation does not match its robust earnings quality and assets profile.

Its prime asset, casino operates in a highly regulated business environment and is at par with other international players. We believe the recent sell-down in the equity markets globally, which Genting is not spared, provides a buying opportunity to buy into Genting for its casino exposures in Malaysia, Singapore, UK and now USA.