We are revising our EPS for 2008E-2010E by -40% to +5.6% and price targetfor Genting International largely to reflect our lower expectations for itscasino business in the UK, and Singapore. Its UK casinos continue tosuffer from sharp economic slowdown in UK, and we do not think it islikely to improve in the near-term considering the weakening consumertrends. As for Singapore, while we do not expect significant constructionor funding risk for its Sentosa Integrated Resorts, Genting International ispreparing for a soft opening of its Universal Studios, four hotels andcasino in early 2010, with the opening of its Western Zone delayed by 6-12months. We are delaying our earnings contribution to end 1QFY2010, andalso cut back our gaming revenues / profitability in view of current globalmarket conditions.

As we have already been factoring in some weakness for its UK casinobusiness over the next 12-24 months, the main earnings downgrade is inFY2010, which we now assume delayed and more modest earningscontribution from the Sentosa Integrated Resorts. With GentingInternational’s key share price driver being the Sentosa Integrated Resortproject, in our view, the progress of its construction as well as the largefunding requirement for the project, remains a key item to monitor —bothof which Genting International says are on-track. As we think it is too earlyto turn positive given the Sentosa Integrated Resorts is only opening inearly 2010, we are maintaining our Neutral rating.

We are revising down our 12-month price target to S$0.45 from S$0.56previously, based on 2009E NAV.

Poor execution and potential cost overrun at the Sentosa IntegratedResort, and further deterioration of the UK casino business.