Citi has released a research report lowering its target price for NAGACORP (03918.HK) to HK$5.5, while maintaining a "Buy" rating.

The brokerage noted that international visitor arrivals to Cambodia in the first half of this year fell 48% year-on-year, which is expected to drag down NAGACORP's VIP betting volume in the second quarter.

However, Cambodia has implemented a four-month visa exemption for Chinese tourists since mid-June, combined with ongoing efforts to crack down on telecom fraud, which could potentially improve inbound visitor numbers and alleviate traveler safety concerns in the second half of the year.

Citi expects NAGACORP's second-quarter gaming revenue to decline approximately 6% year-on-year, while first-half gaming revenue is projected to fall roughly 2% year-on-year.

Additionally, the firm has lowered its EBITDA forecasts for fiscal years 2026 through 2028 by 11% to 14%, and reduced its earnings estimates by 13% to 17%. Consequently, the target price has been adjusted downward from HK$6.5 to HK$5.5.