SINGAPORE (Aug 25): UOB Kay Hian is keeping its “hold” call on passenger cruise line operator Genting Hong Kong (Genting HK) and cutting its target price to 28 US cents (38 cents) from 35 US cents previously, on the notion that share price is expected to “remain soft until there is better earnings visibility”.
The group this week posted a FY16 net loss of US$53.6 million ($72.5 million), sinking into the red from its previous net profit of US$2.17 billion in FY15 on start-up and marketing costs for the launch of Dream Cruises and Crystal Cruises, as well as higher total operating expenses.
Formerly known as Star Cruises Limited, Genting HK’s land and sea businesses comprise Star Cruises, Dream Cruises, Crystal Cruises, Lloyd Werft Group, Zouk, and its associate Resorts World Manila (RWM).
