A peek at RWS: Full house! Our attempt to visit Universal Studios was futile as tickets were sold out during weekends and on the day of our visit. Park capacity has increased to c8-10k guests (from 5k in May; full capacity: 30k) and operating hours extended to 7pm (from 6pm) in view of the school holidays. Hotels were seeing >80% occupancy, with weekends fully booked. While the casino was quiet during our visit on Monday morning, we understood that gaming operations have stabilized post-MBS opening and are seeing good visitations backed by strong loyalty from Genting Group’s Worldcard members. A total different picture was presented during our evening peak hour visit, with table crowds averaging 3 rows deep.
Positive stance on Singapore gaming. Even with MBS’ opening in Apr10, we believe GENS will likely report another strong quarter backed by healthy visitations during the peak holiday season (May-Jul10). While Genting Singapore offers the best leverage into Singapore’s duopolistic market, a cheaper entry will be via Genting Berhad (Buy/ TP: RM9.00) which is trading at half of GENS’ valuation at 7.4x 2011 EV/EBITDA, along with resilient base earnings from its other operations ie Malaysian gaming, plantation and power