ANALYSTS of DBS and Maybank Securities believe Genting Singapore : G13 +1.31% is set to perform gradually better over the next few financial quarters given how countries, including Singapore, Malaysia and Thailand, recently reopened their borders and eased restrictions. 

 

In a report on Friday (May 13), DBS analyst Jason Sum noted how the integrated resort operator&rsquo s strong performance over the past few quarters demonstrated the resilience of domestic gaming demand.

 

He expressed confidence in the group&rsquo s ability to achieve core Ebitda (earnings before interest, taxes, depreciation and amortisation) of at least S$75 million to S$100 million in the absence of tourists.

 

This positive sentiment is further boosted by the recent reopening of borders, which has led Sum to expect a surge in tourist arrivals by 50 to 55 per cent by December 2022. 

 

&ldquo Genting Singapore&rsquo s share price performance has been trailing other reopening plays, but we believe that its robust earnings growth should catalyse a rerating for the stock,&rdquo he said. 

 

DBS has reiterated its &ldquo buy&rdquo call on the stock with an unchanged price target of $1.00. 

 

Similarly, Maybank&rsquo s Yin Shao Yang opined that future quarterly earnings will be gradually better than that of Q1 FY2022 when the group reported Ebitda of S$124.8 million, in line with the research house&rsquo s expectations although its core profit of S$43.5 million fell short. 

 

&ldquo Going forward, Singapore&rsquo s reopened borders ought to translate into better future quarterly earnings,&rdquo he said. 

 

The analyst however remains wary that the group&rsquo s long-term earnings may be &ldquo stifled&rdquo by Thailand, whose government is currently mulling legalising integrated resources. 

 

To reflect such a risk, Maybank has trimmed its target price on the stock to S$0.83 from S$0.86 while reiterating its &ldquo hold&rdquo call. 

 

While CGS-CIMB maintained &ldquo add&rdquo on Genting Singapore, the research house has lowered its price target to S$0.92 from S$0.96 on the basis of &ldquo slight hiccups&rdquo along its road to recovery. 

 

In a Friday report, analyst Tay Wee Kuang observed more outbound than inbound travel as Singapore reopened its borders, and cautioned this could lead to a net negative impact for Genting Singapore and its attractions in the near term. 

 

&ldquo Genting Singapore has also indicated that its pace of recovery could be moderated as a result of limited flight schedules, higher airfares and ongoing travel restrictions on visitors from certain countries,&rdquo he said. 

 

Tay also believes the recent sharp increase in Q1 utilities expense will likely outpace the group&rsquo s business recovery going forward. 

 

As such, the research house&rsquo s earnings per share estimates for FY2022 to FY2024 have been cut by 4 to 31 per cent given the delay in the expected return of tourists in FY2022, and also to factor in higher utilities expenses in FY2022 to FY2024. 

 

The analyst projects the group to only recover business momentum in H2 of FY2022, assuming travel with North Asia will resume then. 

 

INTEGRATED resort operator Genting Singapore reported a 17 per cent increase in its net profit after taxation to about S$40.4 million for the first quarter ended Mar 31, 2022, from S$34.5 million in the year-ago period.

 

This came as revenue grew 13 per cent on the year to S$314.5 million, from S$277.9 million previously, said the mainboard-listed company, which owns Resorts World Sentosa (RWS), in a quarterly business update on Thursday (May 12) evening.

 

Genting Singapore : G13 -1.92% said it is &ldquo encouraged&rdquo by the gradual increase in footfall to RWS. However, it expects the pace of recovery in leisure travel to be moderated by the limited flight schedules, high airfares and ongoing travel restrictions on visitors from certain countries.

 

Meanwhile, higher utilities expenses and the expiry of Covid-19 related government support measures led to a 3 per cent drop in adjusted earnings before interest, tax, depreciation and amortisation, to S$124.8 million for the first quarter.

 

The group noted that it continues to refresh and build new visitor offerings so it may emerge stronger from the pandemic and capture any upswing in demand. Construction works on both Minion Land and the Singapore Oceanarium are scheduled to start in the second quarter of 2022.

 

Renovation works to transform Festive Hotel into a &ldquo bleisure&rdquo (business and leisure) and &ldquo workation&rdquo (work and vacation) hotel as well as the facility upgrade at Resorts World Convention Centre are targeted to start in the second half of 2022. Genting Singapore said these are meant to strengthen RWS&rsquo s position as a leading business-leisure destination that meets the needs of post-pandemic travellers.

 

The hospitality group added that it is &ldquo cautiously optimistic&rdquo of the recovery trajectory, with Singapore having reopened its international borders to fully vaccinated travellers from Apr 1 and further relaxed pandemic-related rules.

GENTING Singapore has appointed its president and chief operating officer (COO) Tan Hee Teck as the company&rsquo s chief executive officer (CEO) with immediate effect, the integrated resort operator announced on Sunday (May 1). Tan will concurrently cease to be president and COO, positions he has held since 2010, upon the new appointment.

 

As CEO, Tan will be responsible for executing the board&rsquo s approved strategies, managing and developing Genting&rsquo s businesses, and providing leadership to its management team, the company said in a bourse filing.

 

Genting : G13 0% added that Tan has been with the group since 2004, serving as CEO of its wholly-owned subsidiary Resorts World at Sentosa (RWS) since 2007. 

 

 

It said: &ldquo He was appointed as the chairman of RWS on Feb 25, 2015, and provides leadership and leads the management team at RWS. He was responsible for the successful bidding of the Integrated Resort at Sentosa in 2006.&rdquo

 

&ldquo The Nominating Committee and the board have assessed and are satisfied that Mr Tan has the qualifications and experience to be appointed as chief executive officer of the company,&rdquo it added.

 

Tan also currently sits on the board of the Central Provident Fund, where he also serves as chairman of the risk management committee and a member of the staff committee.