CIMB has estimated that Genting Highlands's new resort hotel-cum-casino project worth S$6.6 billion (about RM16 billion)in Sentosa Island,Singapore will open its door to the public possibly by year end 2009.As such,earning potential must go up as compared to earlier estimates.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 what CIMB’s previously estimated.
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 noon 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.
So let us see how good is CIMB in its estimates and how the market will react to it. They spoke of Axiata and Axiata's share price went heavenwards!
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