Genting Singapore Quarterly Earnings Signal Recovery in Asian Tourism

by Warren Seah

Shares of Genting Singapore, a leading casino operator, surged by 11% following an impressive quarterly performance that indicates a resurgence in Asian tourism and a robust VIP segment. As of the noon break on Tuesday, the shares were trading at 94 Singapore cents (74 U.S. cents), marking the largest single-day increase in over three years and almost offsetting the year’s losses.

In its third-quarter report, Genting Singapore revealed a 33% YoY (year-on-year) and 16% sequential growth in quarterly revenue. Furthermore, net profit saw a significant leap of 59% YoY and 47% QoQ (quarter-on-quarter), demonstrating the company’s strong financial position.

Another noteworthy announcement was the board’s approval to augment the capex budget for the expansion of its renowned Resorts World Sentosa facility. The new budget of S$6.8 billion represents a considerable 50% increase compared to the previously earmarked levels in 2019. Industry analysts believe rising commodity and labor costs, as well as adjustments to initial designs, prompted this higher expenditure.

Genting Singapore’s impressive earnings and the strategic decision to expand underscore its resilience in an ever-evolving market. With the recovery in Asian tourism and sustained strength in the VIP segment, the company is well-positioned to continue its success story.

Citi Analysts Positive on RWS Performance and Dividends

Citi analysts George Choi and Ryan Cheung have expressed their enthusiasm for the recent performance of Resorts World Sentosa (RWS). They described it as a “solid beat” and subsequently raised their earnings forecasts for 2023-2025 by a range of 1% to 13%. Despite trimming the stock’s target price to S$1.20 from S$1.26, the analysts believe that the plans put forth by RWS are already incorporated into the stock’s value.

Choi and Cheung highlighted that RWS stands to benefit significantly from the return of inbound visitors. They stated in their research note, “We still like the stock as we believe RWS is one of the major beneficiaries from the return of inbound visitors.” Additionally, they noted that the potential for an increase in dividends adds further appeal to investing in RWS.

Nomura Analysts Recognize Strong Performance and Dispelled Concerns

Nomura analysts Tushar Mohata and Alpa Aggarwal were also impressed with RWS’s performance, referring to it as a “strong beat.” They specifically highlighted a remarkable 140% increase in VIP rolling chip volume during the quarter.

Moreover, the analysts noted that these results should alleviate any concerns regarding China’s macroeconomic conditions, the state of the VIP market, and lackluster results seen in the first two quarters of this year. They expressed their confidence in RWS by maintaining a buy rating and a target price of S$1.26.

Maybank Analyst Acknowledges Profit Beat and Revenue Growth

Maybank analyst Yin Shao Yang raised a target price increase of approximately 4% to S$1.12. He attributed this adjustment to the surge in VIP volume to an eight-year high, which contributed to the profit beat. Yang emphasized that the growth of mass market gross gaming revenue, following years of stagnation before Covid, is equally significant.

In conclusion, analysts from various institutions have taken note of RWS’s positive performance, highlighting the surge in VIP volume and growth in gaming revenue. They maintain favorable outlooks for the stock, recognizing the potential for dividends and benefits from the return of inbound visitors.

In today’s rapidly evolving world, technology plays a pivotal role in shaping our lives. From innovative gadgets to groundbreaking software, it is evident that we are living in an era of technological revolution. As we navigate through this exciting landscape, it is essential to stay informed and up-to-date with the latest advancements.

Embracing the Digital Age

The digital age has made it easier than ever to stay connected and informed. With just a few clicks, we can access a wealth of knowledge from the comfort of our own homes. However, with the abundance of information available, it can be challenging to find reliable sources that provide insightful and accurate content.

Unveiling Intricate Discoveries

A Platform for Visionaries

Stay Informed, Stay Ahead

In this fast-paced digital landscape, staying informed is the key to staying ahead. Our dedicated team of writers and researchers work tirelessly to bring you the most relevant and engaging content. So whether you’re a tech-savvy professional or simply curious about the latest technological advancements, our platform has something for everyone.

Join Our Community

You may also like

Leave a Comment