Genting Singapore - RHB Invest 2020-02-17: No More Osaka; Praying For Yokohama

GENTING SINGAPORE LIMITED (SGX:G13) | SGinvestors.io GENTING SINGAPORE LIMITED (SGX:G13)

Genting Singapore - No More Osaka; Praying For Yokohama

  • Genting Singapore (SGX:G13) has dropped out of the race for the Osaka Integrated Resort (IR), but is likely to continue participating in the bid for the Yokohama IR project. Management previously said the winner of the latter would be announced in 4Q20.



What is new?

  • Last Friday evening the Osaka Prefecture announced that the MGM-ORIX Corp consortium was now the sole qualified applicant for the Osaka IR. Genting Singapore had withdrawn its participation from the project, citing limited time and resources. Instead, the group is now focusing its effort on the Yokohama IR project.


Our view – a strong partner is desirable.

  • We believe MGM was the stronger contender in the race for the Osaka IR, as it managed to secure a major local consortium partner – ORIX. GENS is currently exploring the possibility of tying up with a local partner.
  • During the last analyst’s briefing, management said it hoped to announce – by Sep-Oct 2020 – the securing of a consortium. We believe the ability to secure a strong partnership should improve Genting Singapore’s odds of winning a Japan IR bid.


The competitive race for the Yokohama IR.

  • In Nov 2019, the media reported that Galaxy Entertainment, Genting Singapore, Melco, Sands, Saga Sammy, and Wynn were the interested parties bidding for the Yokohama IR. The Yokohama Prefecture is expected to select the winner by 2021.


Other potential IRs.

  • Previously, management mentioned that it was interested in bidding for the IRs of large metropolitan cities. We note that Osaka and Yokohama are the big cities actively pursuing for bids. According to management, Tokyo recently sought request-for-information. The latter could be a location Genting Singapore would be interested in should the city become keen in pursuing a casino resort.


One less catalyst.






Juliana Cai RHB Securities Research | https://www.rhbinvest.com.sg/ 2020-02-17
SGX Stock Analyst Report NEUTRAL MAINTAIN NEUTRAL 0.850 SAME 0.850



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