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Genting Singapore - Maybank Research 2022-07-21: Marina Bay Sands Post-COVID Results Encouraging

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

Genting Singapore - Marina Bay Sands Post-COVID Results Encouraging

  • Our read of Marina Bay Sands’ 2Q22 results is positive for Genting Singapore (SGX:G13)’s Resorts World Sentosa (RWS). Operations recovered faster-than-expected even without Chinese gamblers.
  • We lift FY22E earnings for Genting Singapore by 78%. While our long-term earnings estimates are little changed, there is room for positive earnings revisions if China eases its zero-COVID policy.



MBS 2Q22 results buoyed by high VIP win rate…

  • Las Vegas Sands (LVS US) released Marina Bay Sands (MBS) 2Q22 results this morning. These results are significant as they reflect operations after Singapore reopened its borders on 1 Apr 2022 and axed COVID-19 testing requirements on 26 Apr 2022.
  • MBS’ 2Q22 EBITDA of US$319m was buoyed by a high VIP win rate of 4.29%. Adjusted for a normal VIP win rate, MBS 2Q22 EBITDA came in at US$278m which was still the highest since the COVID-19 pandemic began.


… but underlying operations recovering fast

  • In US$ terms, MBS’ 2Q22 VIP volume/mass market GGR recovered to 75%/92% of 2Q19 levels largely due to the return of Malaysian and Indonesian gamblers. Though a quarter earlier than we expected, they are broadly in-line with our expectation that industry VIP volume/mass market GGR will recover to 75%/85% of 2019 levels in the long term.
  • LVS stated that gaming operations will not return to 100% of 2019 levels until China relaxes its zero-COVID policy.


Lift Genting Singapore's FY22E earnings by 78%






Yin Shao Yang Maybank Research | https://www.maybank-ke.com.sg/ 2022-07-21
SGX Stock Analyst Report BUY UPGRADE HOLD 0.85 UP 0.830



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