Boustead Holdings Bhd - Approval Granted

Bank Negara has approved the company's proposal to dispose its 80% stake in BH Insurance(M) Bhd to AXA Affin General insurance Bhd for RM362.6 million cash.

Genting Singapore from JP Morgan Research

Rating : Overweight
Price : S$0.94
Target Price : S$1.20

FY09 results slightly below; Spore casino opening within expectations

1) Result slightly below expectations; we maintain OW: Genting Singapore reported an FY09 core net loss of S$167MM vs. our estimate of S$149MM. We are not changing our rating.
2) Weaker UK operations in 4Q09: UK operations contributed S$23MM in FY09 and S$33MM in 9m09. The weaker 4Q09 numbers are due to a poorer luck factor and weaker attendance.
3) RWS casino operations within expectations, so far: Visitor arrivals to the casino were 20,000-25,000 per day in the first five days of operation, which could equate to 7.3MM visitors per annum (by simply extrapolating 20,000 visitors per day); this is above our estimate of 5MM visitors to the casino in FY10. This is in spite of the milder marketing efforts given the initial uncertainty of the opening date. Note that the company is maintaining its visitor arrival forecast of 13MM visitors within the first year of opening.
4) Share price has been weak lately and may remain weak in the short term: This, we believe, is due to (1) recent mandatory conversion of S$322MM of CBs into 338MM new shares, and (2) some initial issues such as the long lines outside the casino and less experienced dealers.
5) Price target, valuation, key risks: We remain OW on the stock with a fundamental PT of S$1.20 as we believe in the long-term prospects of the two Singapore IRs, while we believe that there is upside potential to our FY10E numbers (judging by the very preliminary numbers above). We reiterate the benefit Genting should reap from having 100% market share in the casino segment for at least the next three to five months before the opening of the Sands casino.

Genting Singapore (GENS SP) SELL

Genting Singapore (GENS SP) SELL Price/Fair: S$0.99/1.00 Mkt Cap: US$8.6b Daily: Vol 84.2m 1-Yr Hi/Lo: S$1.30/0.40

Genting Singapore - Too early to gauge
Analyst: Singapore Research Team Email: research@uobkayhian.com

Channel checks by our Singapore analyst on Resort World Sentosa's opening day verified that while the crowds were impressive, admissions to the casino were mainly foreigners, while locals appeared deterred by the entry levy. Despite the turnout, traffic flow to the resort was smooth and streamlined properly, a pleasant surprise considering that there is only one road linking the mainland to the island.

Casino admissions were severely limited by the casino's phased opening - only a fraction of the tables and slots were operational, resulting in a 30-45 minute waiting time for entry. We counted less than 100 slots and around 100 tables that were operational (capacity: 1,300 slots and over 600 tables) on the first day of operations. We understand that additional tables and slot machines were opened on day 2 owing to the high demand.

We estimate the average bet size to be about S$100 at non-roulette grind tables (typical minimum bets were S$25), somewhat comparable to the betting behaviour at Genting Highlands. We understand that a key reason behind the modest opening could be due to the Casino Regulatory Authority's strict micro-managing of the approval process (which in part involves certifying staff and approving appropriateness of slot machines).

We have a Sell call on Genting Singapore, with a S$1.00 fair price. Although the share price has fallen below S$1.00 now, we think it is too early to accumulate.

Technical Analysis on CITIGROUP

Citigroup ST: the downside prevails

Our pivot point stands at 3.5.
Our preference: As long as 3.5 is a resistance, we are bearish. In this case, the downside breakout of 2.85 will trigger a bearish acceleration towards 2.53.
Alternative scenario: Only the upside breakout of 3.5 will invalidate our bearish scenario. In this case, a recovery should shape towards 3.85 at first, and then 4.35.
Comment: The daily technical indicators are bearish and do not show any reversal signs.
Trend: ST consolidation; MT bearish.
Supports and resistances:

4.35 **
3.85 **
3.5 ***
3.23 last
2.85 ***
2.53 *
1.99 *

A Volative 2010 can be expected

Volatility can be expected throughout 2010 and the spotlight will increasely fall on the central bank who will have the difficult task of controlling inflation and asset price appreciate at a time when economic support measures and borrowing needs remain significant. Higher inflation from  rising commodities prices will remain a sticky issue for the authorities in 2010.


Special Situation Team's Strategy
As global growth is expected to pick up over the coming months with a possible return of inflation, we will likely add exposure to commodities such as agriculturals, oil.

Maybank: Above market expectations

The bank posted 1H10 net profit of RM1.875bn, up 44% yoy and 21% above expectations. Key takeaways from the results: (1) Net interest income increased 18% yoy to RM3.31bn due to the higher contribution from its 97.5%-owned PT Bank Internasional Indonesia (2) Income from Islamic banking operations increased 25% yoy to RM738m due to higher income derived from investing of depositors’ fund. (3) Non interest income increased 78% yoy to RM2.36bn on higher fee income, unrealized gains on revaluation of derivatives, forex profits and gain on sales of securities. (4) NPL ratio improved to 1.43% from FY09’s 1.64%.
It is currently trading at FY11E 1.7x P/BV, in-line with banking peers.

(HLB Research)

Genting SP and Genting Berhad

Genting Singapore (GENS SP) SELL

Price/Tgt: S$1.11/1.00 Mkt Cap: US$9.4b Daily: Vol 79.8m 1-Yr Hi/Lo: S$1.32/0.39
Receives casino licence; ready for opening anytime soon. Resorts World Sentosa (RWS) received its casino license from the Casino Regulatory Authority of Singapore (CRA) on 6 Feb 10 and is set to commence operations anytime soon.

Comment: The timing of the receipt of RWS' casino license is within our expectation, and we believe that RWS will officially open its casino just before Chinese New Year (CNY) to take advantage of the festive season. The event is expected to generate favorable market sentiment and may temporarily boost GENS' share price. However, we reckon any share price upside would be capped by concerns over the strict junket regulatory environment, and Genting Singapore's (GENS SP) lofty valuations relative to regional peers (average 2010 EV/EBITDA of 10.5x). Currently, GENS is trading at 17.1x 2010 and 13.6x of 2011 EV/EBITDA.