Company Reports

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, a world-class integrated resort with a theme park, hotels, restaurants, and other nongaming facilities. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

We raise our fair value estimate of narrow-moat Genting Singapore to SGD 1.02 per share from SGD 0.98, following the firm’s strong first-quarter results with revenue and adjusted EBITDA well above its 2019 levels. The growth momentum is ahead of our expectations. We think the visa-free travel arrangement between China and Singapore—along with rising airline capacity from key client markets and successful lifestyle offerings—have boosted traffic and spending to Genting Singapore across gaming and nongaming segments. We increase our 2024-28 revenue assumptions by 10%-15% and adjusted EBITDA by 7%-11%, to reflect a stronger-than-expected growth outlook. We believe Genting Singapore's strong focus on premium lifestyle offerings and ongoing development of the RWS 2.0 project will further strengthen its competitiveness in regional markets and drive robust sales and profit growth in the mid to long term. We think the shares are currently undervalued.

Genting Singapore’s fourth quarter was weaker than that of peer Marina Bay Sands, but we think its operating performance is still decent—revenue well exceeded its 2019 levels, underpinned by robust recovery in tourism demand. We expect Genting Singapore to extend its growth momentum into the next five years, as visa-free travel arrangements between China and Singapore, further upticks in flight capacity from its key client markets, along with new attractions, hotel rooms and lifestyle offerings to be launched in the coming years, would help boost demand across gaming and nongaming segments. We raise our 2024-28 revenue assumptions by an average of 3%, while keeping our five-year forecasts of adjusted EBITDA and net profit largely unchanged, as rising costs—including a 1% increase in the goods and services tax from 2024—will offset the revenue improvement. As such, we keep our fair value estimate at SGD 0.98 per share. We think the shares are currently fairly valued.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, a world-class integrated resort with a theme park, hotels, restaurants, and other nongaming facilities. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

We've raised our fair value estimate for narrow-moat Genting Singapore to SGD 0.98 per share from SGD 0.96 following strong third-quarter results that included revenue and adjusted EBITDA well above 2019 levels. The pace of recovery is ahead of our expectations. We think that, given Genting Singapore’s higher reliance on VIP and premium demand versus peer Marina Bay Sands, rising flight capacity from key premium client markets helped to boost traffic to Genting. In particular, scheduled seat capacity between mainland China and Singapore reached 77% of 2019's level in the third quarter from about 50% in the prior quarter. We expect improving flight capacity to drive further upside, and we've raised our forecasts for 2023-25 revenue by 3%-9% and adjusted EBITDA by 12%-13% to reflect a stronger-than-expected growth outlook. We think the shares are currently undervalued.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, a world-class integrated resort with a theme park, hotels, restaurants, and other nongaming facilities. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

We maintain our fair value estimate of SGD 0.96 per share for Genting Singapore, following the company’s in line second-quarter results, with solid sales recovery across all gaming and nongaming segments, benefiting from the return of regional travel and gaming demand. With tourism traffic and airline capacity continuing to recover—particularly the gradually normalizing travel between China and Singapore—we expect Genting to accelerate its growth in the second half. We maintain our earnings forecasts and expect the company’s adjusted EBITDA to rise 29% year over year to SGD 997 million in 2023. We think the shares are currently fairly valued.

Genting Singapore’s first-quarter results continued to reflect a solid recovery, benefiting from the return of regional travel and gaming demand. However, its pace of recovery lagged peer Marina Bay Sands, with Genting's revenue at 76% of 2019 levels, compared with 111% at MBS. Genting's slower recovery was weighed down by a lower win rate, while Genting’s higher reliance on Chinese visitors has also slowed its pace of recovery as China’s international flight capacity remained at a low level in the quarter. This is largely within our expectations, and with tourism traffic and airline capacity continuing to recover—particularly the gradually normalizing travel between China and Singapore—we expect Genting to accelerate its growth in the coming quarters.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, restaurants, and other nongaming facilities. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

Genting Singapore’s decent fourth-quarter results were in line with our expectations, which continue to reflect a solid recovery, driven by pent-up demand from gamblers in Southeast Asia, who have responded to the easing of entry restrictions to Singapore. With the tourism traffic and airline capacity continuing to recover—particularly the gradually normalizing travel between China and Singapore—we expect Singapore casinos to extend robust growth momentum in the next two years. We maintain our assumption of Genting’s gross gaming revenue returning to 90% of 2019's level in 2023, and to 110% in 2024. We raise our fair value estimate for Genting Singapore to SGD 0.94 per share from SGD 0.92, after rolling our model one year forward. Our tweaks of our forecasts are minor, and we expect the company’s adjusted EBITDA to rise 21% and 12% year over year to SGD 935 million and SGD 1.1 billion in 2023 and 2024, respectively. We think the shares are fairly valued as of market close on Feb. 22.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, restaurants, and other nongaming facilities. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

Genting Singapore reported strong-third quarter results, with adjusted EBITDA rising 73% to SGD 249 million from the prior quarter and tracking 89% of 2019 levels. This is in line with our expectations, as pent-up demand for casinos from Asian countries, particularly Malaysia and Indonesia, has been released after the easing of coronavirus restrictions. With tourism traffic and airline capacity continuing to recover, we expect Singapore casinos to extend strong growth momentum in fourth-quarter 2022.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, and restaurants. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, and restaurants. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

Genting Singapore’s second quarter missed market expectations, with a sharply lower win rate the key drag. However, excluding the luck factor, its second-quarter performance would have been in line with peer Marina Bay Sands and our expectations. We retain our upbeat outlook for the Singapore gaming sector’s recovery, as the pent-up demand for casinos from southeast Asian countries, particularly Malaysia and Indonesia, has been released following the easing of restrictions. With tourism traffic and airline capacity continuing to recover, we expect Singapore casinos to extend the strong growth momentum in the second half of 2022.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, and restaurants. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.

We expect Genting Singapore to report strong second-quarter growth on Aug. 12, and raise our fair value estimate to SGD 0.92 from SGD 0.90, to reflect a more upbeat outlook for Singapore's gaming sector. Sector recovery is ahead of our expectations, as the pent-up demand for the casino experience from Southeast Asian countries—particularly Malaysia and Indonesia—has quickly responded to the eased restrictions. This was evidenced by peer Marina Bay Sands, or MBS’, strong second-quarter results—luck-adjusted EBITDA returned to 71% of 2019’s levels, which significantly exceeded the market expectation of 60%. With tourism traffic and airline capacity continuing to recover, we expect Singapore casinos to extend the strong growth momentum in the second half of 2022. We lift our full-year revenue and adjusted EBITDA estimates by 24% and 20%, respectively, to SGD 1.9 billion and SGD 855 million. These represent 78% and 70% of 2019 levels, respectively, up from 63% and 60% in our earlier forecasts.

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.

Hindered by ongoing COVID-19 restrictions, Genting Singapore’s fourth-quarter results missed our expectations. Net revenue improved 3.8% to SGD 165 million from a quarter ago, boosted by seasonally stronger non-gaming sales, while gaming revenue fell 15% sequentially and adjusted EBITDA fell to SGD 69 million, from SGD 103 million in the third quarter and SGD 220 million a year ago, due to a series of enhanced safety measures to address the omicron risks. Although the near-term outlook is unlikely to surprise on the upside, a recovery is on track, especially as border restrictions continue to relax. We lower our 2022 EBITDA forecast by 14% to SGD 779 million to reflect a soft first-quarter outlook, while we maintain both our midcycle earnings forecast and our fair value estimate of SGD 0.90 per share. The shares are slightly undervalued presently. In addition, we also think management’s guidance for an uptick in dividend payouts in 2022 will help to support the share price.

Genting Singapore operates one of only two casinos in Singapore, with about 40% market share. The casino is part of Genting Singapore’s Resorts World Sentosa, or RWS, a world-class integrated resort, or IR, with theme park, hotels, and restaurants. RWS provides substantial nongaming revenue (around 25%-30% of total revenue) to Genting Singapore, having attracted more than 20 million visitors since opening in 2010. We believe RWS will continue to cement its position as a desirable destination for tourists and gamblers in Singapore, and this should ensure stable earnings growth for the firm. Singapore is Asia's second-largest gaming market and the world’s third-largest.