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%
- We advise investors not to draw 100% identical comparisons with Resorts World Sentosa (RWS). RWS likely ceded market share, albeit to pre-COVID levels, as Singapore reopened its borders. Yet, we gather that 2Q22 ought to be BUY from HOLD.
- See
- Genting Singapore will report 2Q22 results on 12 Aug 2022. See Earnings Calendar.
Yin Shao Yang
Maybank Research
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https://www.maybank-ke.com.sg/
2022-07-21
SGX Stock
Analyst Report
0.85
UP
0.830
