Upgrade to BUY with higher TP of SGD1.16 (+35%)


We believe that the GENS-Sega Sammy JV will win the Yokohama IR RFP
process. If GENS owns 50% of the JV, we estimate that a Yokohama IR will
add SGD1.8b to earnings and SGD0.30/shr to our TP. Adding the latter to
our DCF-based TP, we raise our TP to SGD1.16 from SGD0.86 and upgrade
GENS to BUY. There is a risk an anti-IR Yokohama mayor may be elected
on 29 Aug 2021 but GENS is a tactical BUY as we believe no value from a
Yokohama IR has been imputed into its share price currently.