. but maintain OUTPERFORM - CIMB

Resort World - We view any short-term share price weakness as an opportunity to accumulate as the stock offers investors a cheap exposure to the still-solid domestic gaming operations. After stripping out the RM0.73 cash per share post acquisition of WDG, the stock’s implied forward P/E is a mere 6.6x, which appears to be implying crisis-level valuations. We think this is unwarranted given that i) its business remains resilient and ii) RWB will still have a net cash pile in excess of

RM4.3bn after the acquisition and this could be used for more M&As and capital management initiatives. Given time, we believe RWB will realign its focus back to its solid core operations. We expect the stock to OUTPERFORM on the back of re-rating catalysts of i) large cash pile, ii) potentially higher dividends and iii) regional M&A activities. Resorts remain our top pick for the gaming sector.