GENTING SINGAPORE LIMITED (SGX:G13)
Genting Singapore - Konichiwa Yokohama?
Maintain HOLD and S$0.86 target price for now
- The Japanese integrated resort (IR) liberalisation process is progressing at a rapid clip. Of greatest interest to us is the Yokohama IR Request For Proposal (RFP) process, which we opine Genting Singapore (SGX:G13) has a good chance of winning.
- We estimate that the Yokohama IR will generate US$2.7b in net profit per annum, and is worth US$5.4b (S$0.60/share), which translates into substantial earnings and valuation upside for Genting Singapore.
- Maintain earnings estimates, HOLD call and S$0.86 DCF-based target price for now.
Forecast Yokohama IR GGR of US$7.0b per annum
- We estimate that the Japanese IR industry total GGR will stand at US$11.7b per annum with Kanto (Yokohama)/Kansai (Osaka, Wakayama)/Kyushu (Nagasaki) region accounting for 60%/27%/13% share of total GGR.
- In relation to Yokohama IR GGR, we estimate that it will stand at US$7.0b per annum of which US$5.8b p.a. will be sourced from locals and US$1.2b per annum will be sourced from tourists.
- In terms of VIP: mass market GGR mix, we forecast it to come in at 17% : 83%. More details available in report attached below.
Genting Singapore in a good position to win the Yokohama IR but not without risks
- Our channel checks in Japan indicate to us that Genting Singapore is well positioned to win the anti-IR Yokohama mayor is elected on 22 Aug 2021.
Yokohama IR may add up to S$0.60 per share to our target price
- We estimate that the Yokohama IR will generate US$2.7b in net 40%, the earnings and value accretion will still be a substantial S$1.4b, or the equivalent of S$0.24 per share.
- Continue to read the 30-page report attached below for complete analysis.
- See also
Yin Shao Yang
Maybank Kim Eng Research
|
https://www.maybank-ke.com.sg/
2021-05-19
SGX Stock
Analyst Report
0.86
SAME
0.86
