Genting Singapore’s Q1 In Line; Easing of Travel Restrictions Underpins Upside in 2022

We maintain our fair value estimate of Genting Singapore at SGD 0.90 per share, following the firm's in-line first-quarter results. Net revenue rose 13% year over year to SGD 315 million, supported by a gradual border open-up to international visitors. Adjusted EBITDA fell 3% to SGD 125 million from a year ago, owning to higher utility expenses and expiry of COVID-19-related government subsidies, while it improved 33% from the preceding quarter. The pace of tourism recovery in Singapore is on track, with border restrictions continuing to relax. We maintain both our full year 2022 EBITDA forecast of SGD 713 million and our five-year adjusted EBITDA growth CAGR assumption of 21% between 2021 and 2026. The shares are slightly undervalued presently.