Johannes Salim, CFA

Equity Bottom-Up

<ul><li>A call with the IR of <a href="https://www.smartkarma.com/entities/3141" target="_blank" data-smartkarma-citation="entities:3141:1">Genting Malaysia Bhd (GENM MK)</a> reveals that a confluence of positive factors is at play.</li><li>GENM saw a surge in visitations to Genting Highlands during 1Q18 (26% YoY), which led to DD gaming revenue growth YoY (first time since a while ago).</li><li>EBITDA is likely to grow by a solid 25% CAGR in 2017-19 on the back of GITP (Genting Integrated Tourism Plan) bearing fruit, better domestic consumption, and operating leverage.</li><li>GENM trades at 10.4x/8.7x 2018/19 EV/EBITDA, a deep 30% discount to average Macau peers.</li></ul>

A call with the IR of Genting Malaysia Bhd (GENM MK) reveals that a confluence of positive factors is at play.GENM saw a surge in visitations to Genting Highlands during 1Q18 (26% YoY), which led to DD gaming revenue growth YoY (first time since a while ago).EBITDA is likely to grow by a solid 25% CAGR in 2017-19 on the back of GITP (Genting Integrated Tourism Plan) bearing fruit, better domestic consumption, and operating leverage.GENM trades at 10.4x/8.7x 2018/19 EV/EBITDA, a deep 30% discount to average Macau peers.

Genting Malaysia: A Confluence of Positive Factors Raising Buy Conviction