GENTING Bhd, Asia’s biggest publicly-traded casino operator, may open its S$6.6 billion (about RM16 billion) resort in Singapore before the end of 2009 and earn more than earlier estimated for the first year of operations, CIMB Investment Bank Bhd said.
The “quick pace” of construction could lead to a pre-2010 opening instead of early next year, CIMB said in a report today after a recent visit to the site in Singapore.
Genting may announce the resort’s opening date next month, it said.
The casino resort in Singapore is expected to generate S$690 million in earnings before interest, tax, depreciation and amortization in the first year of operations, more than twice CIMB’s previous estimate, CIMB said.
CIMB today raised its target price on Genting to RM9.40 from RM7.90. Shares of the company, based in Kuala Lumpur, gained 1.9 per cent to RM6.42 at 12:05pm, set to become the third-best performer on the Malaysian benchmark stock index today.
Genting’s Singapore project is one of two casino resorts the government has allowed to be built in the city-state as part of its goal to lure 17 million visitors and triple annual tourism revenue to S$30 billion by 2015. Genting Singapore Plc, partly owned by Malaysia’s Genting, said on June 25 the resort in Singapore is on track to open in early 2010.
Las Vegas Sands Corp, controlled by billionaire Sheldon Adelson, said on July 8 it will open its Singapore casino resort on schedule in January or February next year.
Looking like there will be lots of catalysts for Genting and maybe Genting Malaysia. Investors and traders like catalysts, rumours and stories. I think Genting will certainly become hotter than before.
Genting and Genting Malaysia are my favourite stocks.
Good luck in your trading
GOon
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