GENTING SINGAPORE LIMITED (SGX:G13)
Genting Singapore - Recovery Underway
- Recovery gains momentum post Singapore’s full reopening.
- Resorts World Sentosa (RWS) 2.0 construction commenced in 2Q22.
- Positive reading from Marina Bay Sands’ 2Q22 performance.
Visitor arrivals to Singapore recovered to 35% of pre- COVID levels in Jun 2022
- Following the easing of travel restrictions in Singapore, visitor arrival improved significantly by 143%, 42% and 30% m-o-m in Apr, May and Jun 2022 respectively, reaching 35% of its pre- COVID levels. There was particularly strong growth of visitor arrivals from Indonesia, India, Malaysia and Australia (36% of pre-COVID arrivals into Singapore).
- While China’s reopening of boarder remains uncertain (19% of pre-COVID tourists’ arrivals to Singapore), the shortfall could be partially replaced by visitors from other source markets due to strong pent-up demand, aiding the recovery of Genting Singapore (SGX:G13).
Encouraging MBS’ 2Q22 results
- Las Vegas Sands reported its 2Q22 results which showed encouraging recovery at Marina Bay Sands (MBS) during the quarter, driven by Singapore’s full reopening. MBS saw strong growth across both gaming and non-gaming segments. Adjusted property EBITDA grew 164% q-o-q to US$319m (185% y-o-y) in 2Q22, which was the best performing quarter since the onset of the pandemic.
- We see MBS’ results as a positive to Genting Singapore which could suggest a faster-than-expected recovery in 2Q22 following Singapore’s reopening in April 2022.
RWS 2.0 is targeted to open in 4Q24
- Genting Singapore had commenced constructions works on both Minion Land and the Singapore Oceanarium in 2Q22. Targeted opening date is by end of 2024.
- As of 31 Dec 2021, Genting Singapore had net cash of S$3.1b and is in healthy financial position to fulfil its commitment of Resorts World Sentosa (RWS) 2.0. Management also mentioned that they are likely to review its dividend policy to reward shareholders. We expect a full year dividend of S$0.02 per share in 2022.
- As countries reopen borders and ease travel restrictions, we expect better quarters ahead for Genting Singapore, barring the risks of a spike in COVID-19 cases and a recession.
- See
Chu Peng
OCBC Investment Research
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https://www.iocbc.com/
2022-07-25
SGX Stock
Analyst Report
0.92
DOWN
0.940
