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Published: Wednesday November 14, 2012 MYT 10:33:00 AM

Genting Bhd falls after weaker earnings from Genting Singapore


KUALA LUMPUR: Genting Bhd's share price fell in active trade on Wednesday as analysts reduced their forecasts after Genting Singapore (GENS) posted weaker earnings.

At 10.15am, Genting fell 18 sen to RM9.31. There were 652,700 shares done.

The FBM KLCI fell 1.49 points to 1,636.10. There were 159.15 million shares traded valued at RM167.18mil. There were 150 gainers, 153 losers and 229 counters unchanged.

CIMB Equities Research had reduced its target price for Genting to RM10.90 from RM11.60. GENS makes up just over 40% of Genting's net profit, it said.

The research house said GenS reported poor Q3, 2012 numbers that were well below expectations.

It said Resorts World Sentosa (RWS) is adjusting to find a steady state of growth in the face of tough regulation.

However, CIMB Research said Genting's diversified earnings base remains the best proxy for the group.

"We cut our EPS forecasts by 3%-9% following our earnings revisions for GENS. Our RNAV-based target price is lowered to RM10.90 following the revision in our target price for GENS, which makes up 45% of Genting's RNAV. M&A and restructuring opportunities remain key catalysts for Genting. Maintain Outperform," it said.

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