Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

<ul>
<li>A recent dip in the shares against an accelerating revenue recovery trend signals a stronger buy signal not yet broadly recognized by the market.</li>
<li>Performance to date augers well for a considerable upside by 4Q22 to 1Q23.</li>
<li>Gains achieved in all customer segments: main floor mass, premium mass as well as VIP.</li>
</ul>


A recent dip in the shares against an accelerating revenue recovery trend signals a stronger buy signal not yet broadly recognized by the market.
Performance to date augers well for a considerable upside by 4Q22 to 1Q23.
Gains achieved in all customer segments: main floor mass, premium mass as well as VIP.


Asia Casino Sector: We Are Raising Guidance on Nagacorp to Strong Buy and Overweight

<ul>
<li>We have long been fans of this company due to its record of sound management decisions and asset allocation moves to expand steadily against demand.</li>
<li>Six month results support our thesis that ASEAN casinos that have reopened are re-ramping revenues apace as Macau remains dead pooled by Beijing zero tolerance covid policies.</li>
<li>At its current price we see mounting sentiment to the upside as sequential earnings improvements y.y can be expected in Qs 3 and 4.</li>
</ul>


We have long been fans of this company due to its record of sound management decisions and asset allocation moves to expand steadily against demand.
Six month results support our thesis that ASEAN casinos that have reopened are re-ramping revenues apace as Macau remains dead pooled by Beijing zero tolerance covid policies.
At its current price we see mounting sentiment to the upside as sequential earnings improvements y.y can be expected in Qs 3 and 4.


Nagacorp: Six Month 2022 Results Validate Bullish Outlook for Year as Pandemic Wanes in Cambodia

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Bloomberg reported <a href="https://www.smartkarma.com/entities/mgm-resorts-international" target="_blank" data-smartkarma-citation="entities:16227:1" rel="noopener">MGM Resorts International (MGM US)</a> recently approached <a href="https://www.smartkarma.com/entities/genting-singapore-ltd" target="_blank" data-smartkarma-citation="entities:439:1" rel="noopener">Genting Singapore (GENS SP)</a>’s controlling shareholder, <a href="https://www.smartkarma.com/entities/genting-bhd" target="_blank" data-smartkarma-citation="entities:14210:1" rel="noopener">Genting Bhd (GENT MK)</a>, to express an interest in a deal.  </li>
<li>While the discussions with MGM Resorts have fizzled out, other potential suitors are reportedly interested. Shares are in a trading halt pending a response to an SGX query.</li>
<li>Genting Singapore trades at a discount to peers. Precedent transactions suggest a potential privatisation price of at least S$1.00 per share, a 33% premium to the last close. </li>
</ul>


Bloomberg reported MGM Resorts International (MGM US) recently approached Genting Singapore (GENS SP)’s controlling shareholder, Genting Bhd (GENT MK), to express an interest in a deal.  
While the discussions with MGM Resorts have fizzled out, other potential suitors are reportedly interested. Shares are in a trading halt pending a response to an SGX query.
Genting Singapore trades at a discount to peers. Precedent transactions suggest a potential privatisation price of at least S$1.00 per share, a 33% premium to the last close. 


Genting Singapore in the Crosshairs of Potential Suitors

<ul>
<li>We have long been bullish on Nagacorp Ltd. on long term fundamentals. We are now seeing rising positivity as market sentiment begins to recognize ASEAN covid recovery coming.</li>
<li>Stock is at midpoint of 52 week range at HKD$6.97. Our 1 year target is HKD$10.425 based on what we see trending from its 1Q22 unaudited results.</li>
<li>All revenue segments up: Morgan Stanley report agrees with our view that shares present an immediate opportunity due to potential in cross border gamblers and ASEAN mass.</li>
</ul>


We have long been bullish on Nagacorp Ltd. on long term fundamentals. We are now seeing rising positivity as market sentiment begins to recognize ASEAN covid recovery coming.
Stock is at midpoint of 52 week range at HKD$6.97. Our 1 year target is HKD$10.425 based on what we see trending from its 1Q22 unaudited results.
All revenue segments up: Morgan Stanley report agrees with our view that shares present an immediate opportunity due to potential in cross border gamblers and ASEAN mass.


Nagacorp: Cambodia Is Open, Covid at Low, Stock Attractive as Alternative to Macau Tourist Gamblers

<ul>
<li>Unsurprisingly, the independent expert (IE) considers <a href="https://www.smartkarma.com/entities/crown-resorts-ltd" target="_blank" data-smartkarma-citation="entities:808:1" rel="noopener">Crown Resorts (CWN AU)</a>'s A$13.10 offer from <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group (BX US)</a> to be fair and reasonable. We think that IE’s valuation approach is sound.  </li>
<li>The key condition is approval from shareholders and gaming regulatory authorities. The scheme meeting is scheduled for 29 April. </li>
<li>We continue to think that offer is attractive. At the last close price and for the 12 May implementation date, the gross and annualised spread is 2.7% and 27.1%, respectively.</li>
</ul>


Unsurprisingly, the independent expert (IE) considers Crown Resorts (CWN AU)'s A$13.10 offer from Blackstone Group (BX US) to be fair and reasonable. We think that IE’s valuation approach is sound.  
The key condition is approval from shareholders and gaming regulatory authorities. The scheme meeting is scheduled for 29 April. 
We continue to think that offer is attractive. At the last close price and for the 12 May implementation date, the gross and annualised spread is 2.7% and 27.1%, respectively.


Crown Resorts Scheme Meeting on 29 April, IE Opinion

Cambodia

NagaCorp Limited is a leisure and tourism company with casino operations in Phnom Penh, the capital city of Cambodia. The Company also offers hotel accommodation, manages food and beverage outlets, recreational facilities, entertainmentand retail operations.

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NagaCorp Ltd (3918 HK)

Asia Casino Sector: We Are Raising Guidance on Nagacorp to Strong Buy and Overweight

Nagacorp is undervalued because its recovery is faster and market is focused on Macau still under zero toleration rules of Beijing.

Howard J Klein

Nagacorp: Six Month 2022 Results Validate Bullish Outlook for Year as Pandemic Wanes in Cambodia

Nagacorp has continued to rebound from covid at a rate higher than most peers. This is due to a clearly superior management culture and pent up...

Howard J Klein

Genting Singapore in the Crosshairs of Potential Suitors

Bloomberg reports that Genting Singapore is drawing takeover interest. Precedent transactions suggest a potential privatisation price of at least...

Arun George

Nagacorp: Cambodia Is Open, Covid at Low, Stock Attractive as Alternative to Macau Tourist Gamblers

Nagacorp is gaining positive sentiment as investors begin to realize that Cambodia represents an alternative gaming destination to Macau while it...

Howard J Klein

Crown Resorts Scheme Meeting on 29 April, IE Opinion

The key condition is approval from shareholders and gaming regulatory authorities. Scheme meeting is on 29 April. At the last close and for the 12...

Arun George

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