Genting Singapore - Maybank Kim Eng 2021-11-10: Dragged Down By Delta In 3Q21

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GENTING SINGAPORE LIMITED (SGX:G13)

Genting Singapore - Dragged Down By Delta In 3Q21

Maintain HOLD call on Genting Singapore

• Genting Singapore (SGX:G13)'s 3Q21 results were weak but expected as new COVID-19 cases surged in Singapore. We trim our earnings per share estimates by 5-9% on lower interest income but leave our EBITDA estimates largely unchanged.
• While we expect 4Q21 to be similarly weak, we expect FY22E to be better due to the return of Malaysian gamblers. Singapore and Malaysia will launch a vaccinated travel lane on 29 Nov 2021. Yet, we opine that this news has already been priced in.
• Maintain HOLD call on Genting Singapore.

3Q21 results weaker y-o-y & q-o-q but not unexpected

• Genting Singapore's 3Q21 core net profit of S$26.0m (-64% y-o-y, -61% q-o-q) brought 9M21 core net profit to S$137.5m (+1294% y-o-y) which was within our expectations despite coming in at 81% of our FY estimate.
• We expect 4Q21 core net profit to be similar to 3Q21, bringing FY21 core net profit to S$160m- S$170m. 9M21 revenue of S$806.3m (+8% y-o-y) was within our expectations at 72% of our FY estimate.
• No dividend was declared in 3Q21 but we expect Genting Singapore to declare a final dividend of S$0.01 in 4Q21.

4Q21 may be similarly weak…

• 3Q21 results were weak largely due to new COVID-19 cases in Singapore rising target price is unchanged.

… but SG-MY VTL a step in the right direction

• Despite the weak step to other entry points being reopened to Malaysians (e.g. Seletar Airport, Causeway and Second Link).
• See
  • Genting Singapore's Share Price,
  • Genting Singapore's Target Price,
  • Genting Singapore's Analyst Reports,
  • Genting Singapore's Dividend History,
  • Genting Singapore's Announcements,
  • Genting Singapore's Latest News.

Yin Shao Yang Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-11-10

SGX Stock Analyst Report HOLD MAINTAIN HOLD 0.860 SAME 0.860