Shares Downgraded to Neutral

UBS has downgraded the company's shares from 'Buy' to 'Neutral' and reduced the target price for the company's stock from HKD 8.14 to HKD 5.4 in order to reflect the uncertainty of its cash flow and operating prospects. UBS also reduced its EBITDA estimates for 2008, 2009 and 2010 to 22%, 36% and 19% respectively, while predicting EPS of HKD 0.04 for 2008, an EPS of HKD (0.05) for 2009 and an EPS of HKD 0.06 for 2010. According to UBS, the company's stock has plunged 33% to date, mainly due to a downturn in the industry overall and the weak EBITDA of the Star World Hotel Macau, its subsidiary. Additionally, the company's VIP Room is losing market share.


Source: www.aastocks.com

Date: 2 Jul 2008

CN01/RL/MZ/BT/MM