Investment bank Maybank has raised its 2022 earnings estimates for Genting Singapore by 78%, citing stronger than expected Q2 results from its local rival Marina Bay Sands (MBS) in the absence of Chinese gamblers.
In a note, Maybank IB analyst Samuel Yin Shao Yang said the MBS results – which saw the Las Vegas Sands property record EBITDA of US$319 million versus street estimates of US$250 million – were a positive for Genting Singapore’s Resorts World Sentosa (RWS) given the faster than expected recovery “even without Chinese gamblers.”
Describing the MBS recovery as coming a quarter earlier than expected, Yin said, “We lift FY22E earnings for Genting Singapore by 78%,” with revenue now tipped to reach SG$1.77 billion and EBITDA SG$804 million.
The investment bank did note that RWS is likely to have ceded some market share to MBS in Q2 and it was therefore ill-advised to draw a 100% comparison with MBS.
However, Yin said he expected 2Q22 to be “sequentially much better for RWS,” with room for long-term positive revision as well should China ease its zero-COVID policy, allowing its citizens to travel.
Maybank has increased its target price for Genting Singapore shares from SG$0.83 (US$0.60) to SG$0.85 (US$0.61) and upgraded the company from “Hold” to “Buy”.
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