Cheaper exposure to GENS’ Yokohama IR bid

Maintain BUY call with higher TP of MYR6.26 (+10%)
We now expect GENT to generate a mild FY21E net loss. That said, we raise our SOP-based TP by 10% to MYR6.26 on our belief that GENS and its JV partner will win the Yokohama IR RFP process. By our estimation, a Yokohama IR may double GENT earnings in the long run. If GENS and its JV partner win the Yokohama IR RFP process and GENT’s share price reacts the same way as when GENS won the Sentosa IR RFP process, we do not discount the possibility that GENT’s share price may hit MYR10.