0140 GMT [Dow Jones] STOCK CALL: Star Cruises' (S21.SG) 2Q09 results show cruise operator has turned around, UOB KayHian says. Notes 2Q09 net profit +4.4% on-year at US$15.4 million as effective cost management offsets weak demand partly due to H1N1 outbreak. Adds, Star Cruises' 50%-owned Resorts World Manila casino also started operations Aug. 28, offers important intermediate-term growth driver. Expects company could erase 2009 losses by 2011 as significantly firmer contributions from NCL and Resorts World Manila more than offset challenges within Asian cruise business due to rising competition from land-based casinos. Notes Genting Malaysia (4715.KU) owns 19% of cruise operator; Star Cruises makes up 6.6% of GENM's RNAV of MYR3.26/share. Says if Star Cruises trades at high-end of potential RNAV of US$0.27-US$0.36/share, could boost GENM's RNAV by 3%. Rates GENM at Buy, target at MYR3.26; doesn't rate Star Cruises. Star Cruises +3.9% at US$0.27; GENM +1.1% at MYR2.82.
Dow Jones Newswires
September 15, 2009 21:40 ET (01:40 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
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