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Stock Reaction SharpLink Gaming (SBET.US)  dropped  15.5% Friday  after weak Q2 results and a heavy non-cash hit tied to its Ethereum holdings. Earnings Snapshot Revenue : $0.7M (↓ from $1.0M YoY) Gross Profit : $0.2M Net Loss :  $103.4M , mainly due to: $87.8M non-cash impairment  on liquid staked Ethereum (ETH) $16.4M non-cash stock-based compensation  (linked to a strategic advisory deal with Consensys) Treasury Strategy: Big Bet on ETH Q2 marked SharpLink’s  pivot to Ethereum as its primary reserve asset . Raised  $2.6B via capital offerings Acquired  728,804 ETH , nearly all staked Earned  ~1,326 ETH in staking rewards  to date Boosted its  ETH Concentration metric by 98% in weeks Co-CEO Joseph Chalom said this strategy positions SharpLink “at the center of a transformational opportunity in global finance and technology.” Investor Takeaway Core business weak : declining sales and shrinking gross profit ETH strategy dominat...

Upgrade to OUTPERFORM with higher target price (TP) of RM5.00 from RM4.60 We met with Genting Malaysia’s (GENM) management recently. We are optimistic that the progressive completion of the Genting Integrated Tourism Plan (GITP) project would help to boost visitor arrivals, leading to higher earnings growth going forward. Meanwhile, its UK operations have turned around after adopting a new strategy to focus on the premium mass market. We raise our FY17-18F earnings forecasts by 12-13%, supported by higher visitor growth of 9-10% p.a at Genting Highlands. As a result, our SOTP-based TP is revised up to RM5.00 (RM4.60 previously). We upgrade the stock from Neutral to Outperform. GITP progressing well.  The new Awana SkyWay is fully operational since two weeks ago. With 4,500 parking bays at the Awana SkyWay Car Park, visitors could now cut short travelling time up to the peak. The Sky Avenue’s F&B and retail outlets are also opened for public but the premium...

Retain HOLD with unchanged target price (TP) of RM3.16 News Berjaya Sports Toto Berhad (BToto), through its 88.26%- owned subsidiary Berjaya Philippines Inc. (BPI) has proposed to acquire 6,589,934 shares (26.31% of the total outstanding shares) of H.R. Owen Plc (HR Owen) from Bentley Motors Limited (Bentley) for a total purchase price of �14.83m (~RM 83.82m) or �2.25 (~RM12.72) per share. Completion of the share purchase is to take place within six months, or no later than 8 June 2017. Following the completion of the acquisition of the shares, BPI will own 98.34% of the total outstanding shares of HR Owen. Recall that back in 2013, in H.R. Owen was acquired by BPI with a total stake of 72.03% after a mandatory takeover offer. Bentley remained as the second largest shareholders with 26.31% stake and the remaining 1.66% shares were with minority shareholders. H.R. Owen was then de-listed on the London Stock Exchange on 15 April 2014. Comments We are neutral ...

Upgrade to OUTPERFORM from neutral call with revised target price (TP) of RM9.80 Genting Berhad (GENT) reported a 3Q16 net profit of RM577.2m, increasing by 60% YoY mainly due to lower fair value loss on derivative instruments and lower impairment losses. After stripping out these losses and other exceptional items, 9MFY16 core net profit accounted for 76% of our full-year estimates. 3Q16 adjusted EBITDA was down 12% YoY largely due to net foreign exchange losses on financial assets compared with net foreign exchange gain in the previous year recorded under the investments & others segment. At adjusted EBITDA level, most key segments posted higher contribution i.e. leisure & hospitality and plantation. Our SOTP-based TP is revised up from RM9.00 to RM9.80 due to the upward revision in our TP for Genting Malaysia (GENM) as well as a higher consensus valuation on Genting Singapore (GENS). Given the recent retracement in its share price, we now see value in GENT and...

Maintain neutral call with raise the target price (TP) to RM4.60 Genting Malaysia (GENM) reported a 70.3% increase in 3Q16 net profit to RM555.7m. Stripping out gain on disposal of assets, reversal of previously recognized impairment losses and tax relief on capex, 9M16 core net profit of RM960.3m came in within expectations. Its UK and US operations delivered stronger performance on the back of higher hold percentage, higher bad debt recovery and pick-up in business volume. We maintain our earnings forecasts for FY16-18F. However, we raise our SOTP-based TP to from RM4.05 to  RM4.60  to factor in higher earnings multiples for its UK and US operations given the improvement in earnings visibility. We maintain our  Neutral  rating on GENM. We believe any meaningful earnings contribution from GITP Phase 1 project would only be felt towards end 2017. 3Q16 revenue rose 8.5% YoY on stronger Leisure & Hospitality contribution.  The group achieved a r...