GENTING SINGAPORE LIMITED (SGX:G13)
Genting Singapore - Beneficiary Of Border Reopening
- Genting Singapore's 1H21 adjusted EBITDA met expectations.
- No interim dividend was declared.
- Winner of Yokohama IR bid likely to be announced in Sep.
Net income swung back to a profit of S$88.2m in 1H21
- Genting Singapore (SGX:G13)’s 1H21 results came in within our expectations. Revenue grew 23.7% y-o-y to S$554.8m while bottomline turned from a loss of S$116.7m to a profit of S$88.2m, mainly driven by higher gaming revenue (+61.4% y-o-y).
- Genting Singapore's 1H21 adjusted EBITDA jumped 314.2% y-o-y to S$276.1m, which formed 48% of our initial forecasts, met our expectations. No interim dividend was declared in 1H21, same as 1H20.
Update on proposed bid for an Integrated Resort (IR) project in Japan
- Genting Singapore announced that it is leading a consortium of local Japanese corporates and submitted a bid in response to the Yokohama City Request for the Yokohama IR bid. As one of the remaining two bidders, management shared that the winner is likely to be announced in September.
A slight ESG valuation discount
- Singapore lifted its restrictions from 10 Aug which was earlier than expected as community cases stabilised. As of 15 Aug, 75% of population in Singapore has been fully vaccinated. We believe the country is on track to reach 80% of full-vaccination rates by September and expect to see more social activities and travel to resume in September.
- While we believe demand is likely to remain largely supported by local demand in 2H21, Genting Singapore will benefit from Singapore’s high inoculation rate which will create opportunities for a gradual and selective opening of borders by end of 2021.
- We apply a slight ESG valuation discount and our fair value estimate for Genting Singapore hence decreases from S$0.96 to S$0.94.
- See
Chu Peng
OCBC Investment Research
|
https://www.iocbc.com/
2021-08-16
SGX Stock
Analyst Report
1.020
SAME
1.020
