Genting Singapore - Maybank Kim Eng 2020-12-15: Phase 3 Re-Opening ~ Journey Of Recovery Begins With This Step; Upgrade To BUY

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

Genting Singapore - Phase 3 Re-Opening ~ Journey Of Recovery Begins With This Step


Upgrade to BUY with higher target price of S$0.95 (+22%)

  • Phase 3 of Singapore’s reopening will begin on 28 Dec 2020. In addition, the Pfizer-BioNTech vaccine will arrive soon and Singapore will gradually reopen its borders.
  • Our earnings estimates for Genting Singapore (SGX:G13) are unchanged but we lower our WACC from 14.5% to 11.8% as we revert to the five year mean beta of 1.2x (1.5x previously) and roll forward our valuation base year from end-FY20E to end-FY21E to derive a revised DCF-based target price of S$0.95 (from S$0.78).
  • Upgrade Genting Singapore to BUY (from HOLD).



Phase 3 reopening positive for Genting Singapore



Other developments also sending out positive vibes

  • The first batch of the Pfizer-BioNTech vaccine will arrive by year end. Singapore aims to vaccinate its entire population by end-2021. This will instil confidence in Singaporeans to visit RWS again. We gather that they accounted for ~20%/~50% of pre-COVID-19 VIP/mass market GGR.
  • Prime Minister Lee also stated that Singapore will gradually reopen its borders. This is important as we gather that Chinese, Malaysians and Indonesians accounted for ~80%/~50% of Genting Singapore's pre-COVID-19 VIP/mass market GGR.

Increasingly confident of our earnings estimates






Yin Shao Yang Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2020-12-15
SGX Stock Analyst Report BUY UPGRADE HOLD 0.95 UP 0.780



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