Genting Spore 03 (Nov 14 - Dec 26)

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genting-singapore-swings-out-red-2q-disposal-gain-improved-revenue
https://www.theedgesingapore.com/gentin ... ed-revenue

[winston]

Genting Singapore: 2018 prospects continue to look robust

Genting Singapore (GS) posted another strong set of quarterly results this year.

3Q17 revenue increased 8% YoY to S$629.9m, supported by an 11% increase in gaming revenue on the back of stronger VIP and premium mass business volume.

With an improved operating margin and lower net impairment on receivables, 3Q17 adjusted EBITDA increased 37% YoY to S$320.1m or 28.6% of our full-year forecast, at the higher end of our expectations.

Looking forward to 2018, we expect GENS to continue to enjoy top-line growth stemming from a steadily recovering gaming sector, higher operating margins, as well as manageable receivable impairments.

After making adjustments, our FCFE-based fair value increases from S$1.32 to S$1.35.

Source: OCBC

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genting-singapore-posts-35-increase-3q-earnings-1438-mil
https://www.theedgesingapore.com/gentin ... s-1438-mil

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Genting Singapore posts 29% decline in 4Q earnings to $134 mil
https://www.theedgesingapore.com/gentin ... gs-134-mil

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Genting Singapore posts 20% rise in 1Q earnings to $217.2 mil with focus on the affluent
https://www.theedgesingapore.com/gentin ... s-affluent

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Genting Singapore reports 24% rise in 2Q18 earnings to $177.6 mil
https://www.theedgesingapore.com/gentin ... s-1776-mil

[winston]

vested

Genting Singapore kept at ‘buy’ as value emerges ahead of Japan bid

By PC Lee

SINGAPORE (Oct 25): UOB KayHian is maintaining Genting Singapore (GENS) at “buy” given now the stock is trading at a historically low valuation and should start to significantly rerate next year, as newsflow of its bid for a resort in Japan intensify.

GENS currently trades at an attractive 5.9-6.0x 2018/19 EV/EBITDA, which is below –2SD to its mean EV/EBITDA, according to UOB.

“We expect valuations to trend up over time, supported by its unexcited but stable Singapore operations and as its bidding for Japan’s integrated resorts (IR) concession builds up to the request for proposal (RFP) stage,” says lead analyst Vincent Khoo in a Thursday report.

To recap, competitor Las Vegas Sands’ 3Q18 results revealed that Marina Bay Sands’ (MBS) core adjusted EBITDA decreased 5.2% y-o-y to US$419 million ($578 million) with a margin of 54.7%.

On a constant currency basis, core adjusted EBITDA fell 4.7% y-o-y in Singapore dollars. Mass market delivered a resilient performance and the VIP segment saw a sequential recovery.

MBS’s 3Q18 rolling chip volume (RCV) recovered 24% q-o-q. The improved gaming volume coupled with a better win rate led to a VIP GGR surge of 50% q-o-q in 3Q18.

On an y-o-y basis, RCV continued its downtrend. Due to the improved win rate, VIP GGR dropped at a smaller quantum of 21% y-o-y in 3Q18. Slot GGR was up 4% y-o-y on a better win rate while mass table GGR was largely unchanged.

For GEN’s Resorts World Sentosa (RWS), UOB expects 3Q18 gaming volume for both mass and VIP segments to hover at 2Q18 levels.

“We estimate VIP volume to be flat y-o-y in 2H18, given the generally weaker macro environment and increasing competition from emerging casinos from Indo China,” says Khoo.

Despite a potentially quiet year for the industry, Khoo says Japan’s legalisation of IR has put the two Singapore operators as strong candidates in the IR bidding, given their experience in operating in a highly-regulated environment and track record in contributing to the country’s tourism.

“Our $1.38 target price for GENS has imputed a Japan “option value” of 10 cents for the Japan greenfield opportunity. The target price of $1.38 implies an EV/EBITDA of 10.5x in 2018,” says Khoo.

Year to date, shares in GENS are down a third to 88 cents on Thursday.

Source: The Edge

https://www.theedgesingapore.com/gentin ... 401b309bc7

[winston]

not vested

Genting Singapore: Going steady

Genting Singapore’s (GS) 3Q18 results were within expectations.

3Q18 revenue was up 1% YoY at S$639.1m, while 3Q18 gross profit was flat YoY at S$305.3m.

3Q18 adjusted EBITDA came in flat YoY at S$318.8m, or 24% of our initial full-year forecast.

GS plans to continue loosening credit to VIP customers while maintaining a cautious stance and keeping an eye on the US-China trade war.

Meanwhile, we believe a schedule of blockbuster events will help to support the strong growth seen in GS’s non-gaming segment.

On the Japan front, GS is in communication with specific cities that have expressed an interest in having an IR, and engaged in discussions with stakeholders to understand the environment and the localities where such cities are involved.

Management guided that they will continue to exercise fiscal caution until there is further clarity of the structure and financing of their potential investment in Japan.

After adjustments, our FCFE-based fair value remains at S$1.39.

Source: OCBC

[winston]

not vested

Recent selldown unjustified; U/G to BUY

Since reporting 2Q18 results, GENS’ share price has plunged 28%.

3Q18 results not only pleasantly surprised us, but GENS is optimistic on its outlook.

We raise our earnings estimates by 5-7% and TP by 2% to SGD1.29 on an unchanged 10x FY18 EV/EBITDA (slightly below 5-year mean).

In our view, GENS is unjustifiably trading at ‘crisis’ valuations of 5.4x FY19 EV/EBITDA or nearly half the 5-year mean and 1.3x FY19 P/BV or only 0.1x above the Global Financial Crisis trough. BUY for 45% upside.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 59f847.pdf