Genting Spore 03 (Nov 14 - Dec 26)

[winston]

not vested

Genting Singapore revenues halves but back to profit in 3Q20

by Ben Blaschke

Genting Singapore has announced a profit of SG$54.4 million (US$40.4 million) in the three months to 30 September, down 66% year-on-year but reversing a loss of SG$163.3 million (US$121.2 million) in the previous quarter resulting from the COVID-19 forced closure of Resorts World Sentosa (RWS).

The improved results come despite a significant fall in revenues compared to 3Q19, impacted by ongoing border restrictions that have limited international leisure arrivals.

RWS suspended operations in early April as a result of the coronavirus pandemic before reopening some non-gaming outlets in late June and its casino from 1 July.

Source: Inside Asian Gaming

https://www.asgam.com/index.php/2020/11 ... t-in-3q20/

[winston]

not vested

Genting Singapore hints at Japan IR hesitation

by Ben Blaschke

Genting Singapore has for the first time hinted that pursuing an integrated resort license in Japan may not be guaranteed.

The company provided a quarterly update over the weekend in which it highlighted a 50% year-on-year decline in revenues in the three months to 30 September 2020, resulting in a 66% drop in profit to SG$54.4 million (US$40.4 million) compared with a profit of SG$158.9 million (US$117.9 million) over the same period last year.

It had previously reported a loss of SG$163.3 million (US$121.2 million) for the second quarter.

Noting it was still “keenly exploring the Yokohama integrated resort opportunity,” Genting Singapore added, “We will evaluate the conditions of the Request-for-Proposal (RFP) and the investment environment when the formal bidding process begins and will respond with a proposal if these conditions meet the Group’s investment criteria.”

Source: Inside Asian Gaming

https://www.asgam.com/index.php/2020/11 ... esitation/

[behappyalways]

Local gamblers drive Genting Singapore back into the black with 3Q earnings of $54.5 million
https://www.theedgesingapore.com/news/r ... 45-million

[winston]

not vested

Positive EBITDA; Upgrade To NEUTRAL
Neutral (from Sell)
Target Price (Return): SGD0.72 (-4.0%)
Price: SGD0.75
Market Cap: USD6,664m
Avg Daily Turnover (SGD/USD) 16.0m/11.7m

Upgrade to NEUTRAL from Sell with a higher SGD0.72 TP from SGD0.62, 4% downside and c.3% yield.

3Q20 revenue and earnings beat our and market’s expectations.

Genting Singapore booked an adjusted 3Q20 EBITDA of SGD149m and net profit of SGD54m – a sharp turnaround from 2Q20’s losses.

The upgrade was on higher-than-expected gaming revenue of SGD213m generated during the quarter. This represents 59% of last year’s figure despite the absence of tourists and capacity limitations.

Hence, 3Q20 net profit forms the base line for earnings moving forward.

Source: RHB

https://research.rhbtradesmart.com/view ... 350882d94f

[winston]

not vested

Genting Singapore - Not every day that it outshines Marina Bay Sands (GENS SP, CP SGD0.75, HOLD, TP SGD0.78, Gaming)

3Q20 results surprised on the upside.

We gather that the outperformance was due to local gamblers remaining in Singapore to gamble.

Curiously, Resorts World Sentosa (RWS) generated more EBITDA than Marina Bay Sands (MBS) in nearly 10 years.

We raise our FY20E EBITDA estimate by 425% but maintain our FY21E/FY22E EBITDA estimates.

Consequently, our DCF-based TP is raised marginally to SGD0.78 from SGD0.76. With <10% upside potential still, we maintain HOLD on GENS.

Source: KE

https://www.kelive.com/KimEng/servlet/P ... &rid=53497

[winston]

not vested

3Q20: A strong suit

9M20 adj. EBITDA of S$215.7m beat our and consensus FY20F forecasts of S$108m and S$115.3m, respectively, on higher-than-expected 3Q EBITDA.

3Q20 adjusted EBITDA of S$149m, although down 46.4% yoy, was significantly above our expectations of a slight EBITDA loss.

We remain positive. Reiterate Add, with a higher TP of S$0.86, still based on 8.5x (close to 0.5 s.d. below mean) but rolled over to CY22F EV/EBITDA.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... c6f7c67d6f

[winston]

not vested

Genting Singapore (GENS SP) - Strong recovery, positive sentiment boost

Genting Singapore’s (GENS) provided its 3Q20 business update.

Revenue fell 50% YoY to S$301.0m, but improved over 100% on a QoQ basis, driven by a strong recovery across all key business segments.

Despite travel restrictions and capacity constraints, 3Q20 adjusted EBITDA swung back into a profit of S$149.0m (-46% YoY) from a loss of S$84.9m in 2Q.

The performance came in above ours and Bloomberg consensus’ expectations on better-than-expected recovery trajectory due to strong pent-up demand from local traffic.

With a more stabilised infection rate in Singapore, GENS could benefit from potential easing of social distancing measures as Singapore enters Phase 3 and support from government on domestic tourism.

Pfizer’s announcement of favourable phase 3 data on its Covid-19 vaccine is positive to GENS, and this was reflected in the strong share price rebound of GENS.

The announcement from Moderna on its 95% effective Covid-19 vaccine could further grow the confidence and drive the recovery.

We revise our FY20/21F EBITDA forecasts by 400%/59% on better outlook and sentiment.

Our fair value hence increases from S$0.68 to S$0.96 which is based on 8.5x FY21F EV/EBITDA. Upgrade from Hold to BUY.

Source: OCBC

[winston]

not vested

Journey of recovery begins with this step

Phase 3 of Singapore’s reopening will begin on 28 Dec 2020.

In addition, the Pfizer-BioNTech vaccine will arrive soon and Singapore will gradually reopen
its borders.

Our earnings estimates are unchanged but we lower our WACC from 14.5% to 11.8% as we revert to the five year mean beta of 1.2x (1.5x previously) and roll forward our valuation base year from end-FY20E to end-FY21E to derive a revised DCF-based TP of SGD0.95 (from SGD0.78).

Upgrade GENS to BUY (from HOLD).

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/2 ... 9664cd.pdf

[winston]

not vested

Genting Singapore - Could not emulate Marina Bay Sands’ sterling 4Q20 results (GENS SP, CP SGD0.89, D/G HOLD, TP SGD0.92, Gaming)

2H20/FY20 earnings and dividends outperformed our expectations. That said, the outperformance was largely due to non-recurring items.

Unfortunately, Resorts World Sentosa (RWS) could not emulate Marina Bay Sands’ (MBS) in growing gaming revenue in tandem with the lifting of operating capacity limits.

Our earnings estimates are little changed for now.

We also trim our DCF-based TP by 3% to SGD0.92 on minor housekeeping.

With <10% upside potential, we downgrade GENS to HOLD.

Source: KE

https://www.kelive.com/KimEng/servlet/P ... &rid=54085

[winston]

not vested

Genting Singapore (GENS SP) - Sequential improvement

Genting Singapore’s 2H20 results were above expectations.

2H20 revenue and net profit dropped 49% YoY and 41% YoY to SGD615.5m and SGD185.9m.

Adjusted EBITDA dropped 36% YoY to SGD360.4m, thanks to a net reversal of SGD23m of impairment charge which was mainly related to a reversal of bad debt and bonus.

A full-year dividend of 1 S cent per share was declared as compared to 4 S cents in FY19.

While GENS’s performance continued to face headwinds from Covid-19 in 2H20, there was QoQ improvement driven by pent-up demand from local visitors together with government’s support to boost local tourism.

We continue to see GENS as a beneficiary of the rollout of vaccines and gradual easing of social distancing and travel restrictions.

However, we believe that demand will be largely driven by local demand in FY21 as it takes time for global rollout of vaccines and opening of international borders.

After adjustments, our fair value increases from SGD0.96 to SGD1.02 which is based on 8.5x FY22F EV/EBITDA. BUY.

Source: OCBC