RHB Research downgraded casino operator Genting Singapore PLC to market perform from outperform after the recent rally in its share price.
The broker also lowered its net profit forecast for the fiscal years 2012 to 2014 by 6.5 to 13%.
RHB said Genting, a unit of Malaysian group Genting , has a market share in Singapore of 47% on a gross gaming revenue (GGR) level in the fourth quarter of fiscal 2011 and of 51% overall for the fiscal year.
“Going forward, management expects overall GGR market share to remain around the 50% mark on an annual basis, as both properties continue to see volatilities in market share depending on luck factor on a quarterly basis,” RHB said.
“This is in line with our projections for FY12, but slightly below our expectations for FY13-14 of 51-52%. As such, we have revised our market share assumptions downwards to 50% for FY13-14.”
Earnings are likely to see a boost after the first quarter from contributions from Genting’s two junket operators, new hotel rooms and stronger marketing efforts, it said.
Genting’s shares were up 0.9% on Wednesday at $1.71, outperforming the 0.5% rise in the benchmark Singapore Straits Times Index. Genting shares have risen by more than 13% so far this year.
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