Singapore Stock Market News

Guocoleisure - Key takeaways from NDR

StockFanatic
Publish date: Fri, 19 Jun 2015, 12:15 PM
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During the NDR we hosted for GuocoLeisure (GLL) in Singapore on 18 Jun, Mike DeNoma, the Group CEO, provided an update on the group's recent developments and shared how GLH (the hotel arm of GLL) would disrupt the conventional hotel management industry with its innovative Value Centre General Manager (VCGM) model. We are upbeat about these corporate developments and GLH's business outlook. Our FY15-17 core EPS estimates are maintained.

We reiterate our Add rating on GLL with an unchanged target price of S$1.18, based on a 25% discount to CY15 RNAV. Key re-rating catalysts include organic earnings growth in the core hotel business, new management contract wins and potential monetisation of its non-core assets.
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