Konichiwa Yokohama?

Maintain HOLD and SGD0.86 TP for now


The Japanese integrated resort (IR) liberalisation process is progressing
at a rapid clip. Of greatest interest to us is the Yokohama IR Request For
Proposal (RFP) process, which we opine GENS has a good chance of
winning. We estimate that the Yokohama IR will generate USD2.7b in net
profit p.a. and is worth USD5.4b (SGD0.60/shr), which translates into
substantial earnings and valuation upside for GENS. Maintain earnings
estimates, HOLD call and SGD0.86 DCF-based TP for now.