Money Talk: Genting, M1 and Wilmar

SINGAPORE - Stay up to date on market chatter with our picks of the latest broker research reports, compiled by The Straits Times Money Desk.

1. Genting Singapore

Broker: Macquarie

On Wednesday in the U.S, Marina Bay Sands' parent company Las Vegas Sands reported quarterly results that were better than consensus. MBS now has a lead over Genting Singapore particularly in the mass market segment and the latter may see a large decline in volumes.

MBS' VIP volumes could also send panic signals in the market. It had VIP volumes of only US$9.1 billion in the tirs quarter of financial eyar 2014 versus US$13.8 billion in 3Q13. For the first 9 months of 2014, MBS' VIP volumes are down 30 per cent year-on-year.

The 30 per cent drop in tourists from China in the first half-year is having a big negative impact on VIP roll.

The opening of new casinos in the region - in Korea and the Philippines - has taken away some of the VIP volumes from Singapore, a trend that will likely continue with more casinos in the region.

Genting Singapore's stock price to remain under pressure and decline another 6.5 per cent from current levels.

Underperform with a 12-month target price of $1.

2. M1

Broker: OCBC

M1 Ltd reported its results for the third quarter of its 2014 financial year on Thursday, with revenue inching up 3.5 per cent year-on-year to $250.2 million but net profit jumping 12.8 per cent YOY to $44.5 million. As such, revenue for the first three quarters of FY14 inched up 0.1 per cent to $ S$730.0 million, meeting 71 per cent of our full-year forecast, while net profit rose 9.7 per cent to $131.2 million, or about 79 per cent of our FY14 estimate, which we deem to be largely in line. M1 has kept its moderate earnings growth guidance for the year, with capex unchanged at S$130m as well. With 9M14 results coming within expectations, we opt to keep our estimates unchanged.

Maintain HOLD with fair value unchanged at $3.37.

2. Wilmar

Broker: Maybank Kim Eng

Wilmar remains our top sector BUY as we bet on a recovery of its soybean-crushing margins and sugar prices.

At 0.9x price-to-book ratio (ratio of share price to value of a company's assets as on balance sheet), downside risk is very limited.

Maintain BUY with a target price of $4.08