NagaCorp’s 1Q gaming revenue showed sequential growth, led by stronger
mass gaming revenues plus stronger VIP win rates. While the financial
operational release does not include any profit or margin update, our Hold
rating on Naga is unchanged due to our concerns about a margin decline. We
maintain our target price of HK$5.98, based on 9x FY15 EV/EBITDA, and our
valuation for Naga 2 of HK$2.09