0348 GMT [Dow Jones] STOCK CALL: AmResearch says listing of Macau casinos will help narrow Genting Malaysia's (4715.KU) discounted valuations vs peers. Says valuations for Malaysia casino operator more attractive vs Wynn Macau (due to be listed Friday), although Wynn has advantage of China market. Genting Malaysia's FY09F PE is estimated at 13X vs Wynn Macau's 34X (based on Wynn Macau's offer price of HK$10.08/share). Additionally, GenM's EV/EBITDA is also lower at 6X for FY09F compared to Wynn Macau's estimated 19X, AmResearch says. Adds, that GenM's earnings also less volatile than Wynn due to Malaysian casino's large domestic-centric operations. Still, Wynn Macau's average daily win/table is larger than GenM's due to more high-rollers (estimated at 68% of revenue vs 25-30% for GenM). House maintains Buy call, target at MYR3.40. Stock last down 1.1% at MYR2.71. (KPL)
Dow Jones Newswires
October 04, 2009 23:48 ET (03:48 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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