Trading opportunity in GENTING SINGAPORE

GENTING SINGAPORE PLC
Primary Symbol & Exchange: GENS
G13 - Ordinary Shares - Singapore Exchange

Price/share @ 6/8/2010 SGD:1.26
Mkt Cap SGD (m) : 15,323.97
Shares (m): 12,161.88
Par -

SECTOR CLASSIFICATION
SGX: Services
Fox Capital: Gaming

Executive Chairman: Tan Sri Lim Kok Thay
Director/President & COO: Mr Tan Hee Teck

KNOWN MAJOR SHAREHOLDER(S) (as at 9/3/2010)
Genting Berhad + 51.77%

Contact Info
HEAD OFFICE

9 Penang Road,

#13-10 Park Mall

Singapore 238459

Tel : +65 6823 9888Fax : +65 6823 9878

BACKGROUND

Genting Singapore PLC* ("Genting Singapore") is a leading integrated resorts development specialist with over 20 years of international gaming expertise and global experience in developing, operating and/or marketing internationally acclaimed casinos and integrated resorts in different parts of the world, including Australia, the Americas, Malaysia, the Philippines and the United Kingdom (“UK”). It is a subsidiary of Genting Berhad and was incorporated in 1984 to invest in leisure and gaming-related businesses outside Malaysia. Genting Group is a collective name for Genting Berhad and its subsidiaries and associates. Genting Group is one of Asia’s leading and best managed multinationals. The Group is renowned for its strong management leadership, financial prudence and sound investment discipline. Genting Singapore is listed on the Main Board of the Singapore Exchange Securities Trading Limited ("Singapore Exchange").

Its principal activities are:
Development and operation of integrated resort
Casino operations
International sales and marketing services
IT application related services
Genting Singapore has an experienced management team that is focused on and committed to growing its business globally. The Group is the largest casino operator in the UK and is operator of a newly opened - world-class integrated family resort in Singapore.Genting Singapore is constantly reviewing new opportunities in the gaming, leisure and hospitality businesses.

WHY WE FEEL THAT THIS IS AN OPPORTUNITY FOR TRADING BUY BEFORE 2Q 2010 RESULTS ARE ANNOUNCED?


1) Genting Singapore (GENS) is scheduled to release its June period results on 12/8/2010 (next Thursday). Upbeat 2Q results are anticipated and this may be a strong catalyst for its share price.

2) Only 1/7/2010, GENS announced the disposal of its UK casinos for Sterling Pound350 million (RM1.67 billion) to Genting Malaysia Bhd. The deal is viewed favourably for GENS on the grounds that the proceeds will lighten the debt burden by removing the UK unit’s Sterling Pound 96 million in net debt from its balance sheet. Moreover, the disposal will allow GENS to concentrate on its SGD6 billion Resort World Sentosa (RWS) integrated resort in Singapore.

Genting UK casinos are not likely to bring significant value to GENS ‘s earnings given its weak and volatile earnings performance, attributed by the hike in UK gaming duties, the ban on smoking and the lack of scale to buffer volatile effects of hold rates [luck factor] in its VIP market.

3) On 2/8/2010, UBS raised target price to SGD1.52 from SGD1.23 after increasing 2011 EBITDA estimate by 18 per cent to SGD1.2 billion to assume higher margins. Kept Buy call. Said even if Marina Bay Sands manages to increase market share, what matters is absolute growth in revenue and profit.

4) JP Morgan has a “buy” recommendation on GENS with a fair value of SGD1.45. It believes that GENS will continue to be the market leader in Singapore despite the opening of Marina Bay Sands, predicting a daily net gaming revenue of SGD6.1 million and 45% margin this year.