Genting Singapore - OCBC Investment 2016-10-12: Japan’s Integrated Resorts Promotion Bill to be debated

Genting Singapore: - OCBC Investment 2016-10-12: Japan’s Integrated Resorts Promotion Bill to be debated GENTING SINGAPORE PLC G13.SI

Genting Singapore: - Japan’s Integrated Resorts Promotion Bill to be debated

  • Pro-casino lawmakers are pushing to legalize casinos in Japan during the Diet’s extraordinary session, set to close in Nov this year. 
  • According to media reports, the potential Japanese casino industry could generate as much as ~US$40b a year. The bill is expected to face opposition from the ruling Liberal Democratic Party’s coalition partner, the Komeito party. 
  • We note that the newly appointed Secretary General of the LDP, Toshihiro Nikai, is known to be pro-casino. 
  • Genting Singapore has long had ambitions to expand in Japan. It set up eight subsidiaries in Japan in preparation to bid for three to four licenses in May 2014, and closely monitored the debate of the Casino Promotion Bill at the Japanese Diet later that year. 
  • We note that any progress in passing the bill may spark increased buying interest in the stock. 
  • For now, we maintain HOLD with a fair value of S$0.77.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2016-10-12
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 0.77 Same 0.770



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