Not vested
Valuation/Recommendationï‚·
We lift our target price but not enough catalysts to upgrade our HOLD call. We lift our target price from RM3.30 to RM3.79 to account for an improved outlook at GENUK and after eliminating an earlier assumed 5% discount to our RNAV/share.
At this stage, we reckon investors would no longer penalise the company for its pricey acquisition of GENUK.
Nevertheless, we prefer Genting Bhd. We still prefer holding company Genting Bhd (BUY/Target: RM13.63) for its exposure to the Genting group. We do not foresee any major capital management exercise this year (only a 8 sen/share dividend was declared for 2010, yielding 2.2%).
Our target price values the stock at 14.7x 2011F PE and 13.5x 2012F PE.
Our entry price is RM3.40.
Share Price Catalystï‚·
Earnings-accretive acquisitions or meaningful capital management.
Stronger-than-expected earnings growth in the UK, the US and Malaysia.
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