Genting Spore 03 (Nov 14 - Dec 21)

[winston]

vested

Genting Singapore (GENS SP, BUY, TP: SGD0.64)

Write-Off 2020, Look Forward To 2021; U/G To BUY

Company Update

Upgrade to BUY from Neutral with new TP of SGD0.64 from SGD0.85, 26% upside plus c.8% yield.

Genting Singapore issued a profit guidance – 1H20 results to be adversely impacted by the COVID-19 outbreak.

While this could pose more downward pressure to share price in the near term, we see value at current prices as it has a strong war chest of SGD3.7bn to help to tide through this period.

We expect earnings to rebound in FY21F once this pandemic blows over.

Source: RHB

https://research.uobkayhian.com/content ... 74497118d1

[winston]

vested

What’s New

Cut FY20/FY21 EBITDA projection by 26% and 6%

Bagging Japan IR project seems out of the question

7.5-8.0% dividend yield supported by operating cash flows and robust balance sheet

Maintain BUY with lower TP of S$0.80

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fcefjkhaa

[winston]

Genting Singapore - Receives a major lifeline (GENS SP, CP SGD0.62, BUY, TP SGD0.84, Gaming)

RWS will receive property tax rebates and be paid wage setoffs.

We estimate that GENS stands to save SGD83m-SGD203m in FY20.

These account for a very helpful 22%-54% of our FY20 earnings estimates which were lowered recently (link) to impute weak revenue due to the Covid-19 pandemic.

Our earnings estimates, BUY call and SGD0.84 EV/EBITDA based TP are unchanged for now.

We continue to like GENS for its high dividend yields (6.5% p.a.) and cheap valuations (0.9x FY20E P/BV).

Source: Kim Eng

https://www.kelive.com/KimEng/servlet/P ... &rid=51870

[winston]

Genting Singapore (GENS SP)
Worth Holding Out For

The impact of COVID-19 pandemic, including Singapore’s surprise 1-month lockdown starting this Tuesday, has taken a much heavier financial toll on integrated resort operators.

Nevertheless, despite our steep earnings cut (-43%) and lower trough valuation of S$0.55 for 2020, our sensitivity analysis continues to suggest bargain price valuation and highly favourable risk-reward dynamics for longer-term investors.

Maintain BUY. Target price: S$0.80.

Source: UOBKH

https://research.uobkayhian.com/content ... 7968c319d5

[winston]

not vested

UOB issues 'buy' call for Genting Singapore, sets price target of S$0.80

by RACHEL MUI

BROKERAGE UOB Kay Hian has maintained its market weight on Singapore's gaming sector and issued a "buy" call for Genting Singapore.

The recommendation comes as UOB's research team last Thursday noted Genting Singapore's "bargain-price valuation" and "appealing dividend yields of 5.5 to 6.1 per cent".

UOB has a price target of S$0.80 for the counter.

With Covid-19 taking a toll on the tourism industry, UOB analysts Vincent Khoo and Jack Goh are expecting steep declines in both gaming and non-gaming revenues for Resorts World Sentosa (RWS) in Q1, given its high dependency on foreign tourists.

"The financial pain is expected to further escalate in Q2, as RWS will be closed for one-and-a-half months to comply with the government's 'circuit-breaker'," they wrote.

Nonetheless, the analysts added that these have been reflected in their previous earnings cuts for Genting Singapore, which included year-on-year gross gaming revenue and non-gaming revenue fall of more than 50 per cent for the first half this year and 20 per cent for Q3 respectively.

Overall, they like Genting Singapore for its "highly favourable risk-reward dynamics for longer-term investors".

This comes on the back of Genting Singapore maintaining "lucrative dividends in 2020, sustainable by net cash of 33 Singapore cents per share", and a conjecture at this point that the Singapore government may allow integrated resort operators to stretch out the implementation of their mandated S$4.5 billion expansion plans.

Mr Khoo and Mr Goh also expect a "swift recovery" in Genting Singapore's share price when Covid-19 tapers off, given the sector's "resilient earnings track record".

Separately, UOB noted that Marina Bay Sands (MBS) was hit by overall weaker gaming statistics and posted weak results for the first quarter this year.

MBS's Q1 revenue declined 20.1 per cent year on year and mass gross gaming revenue shrank significantly due to lower patronage amid the Covid-19 pandemic. Going by Las Vegas Sands' Q1 results, MBS's adjusted earnings before interest, taxes, depreciation, and amortisation fell 33.3 per cent to US$282 million from a year ago, mainly due to weaker rolling chip volume, despite higher win percentage, the bank noted.

VIP volume fell 16.1 per cent quarter on quarter and 6.9 per cent year on year, while mass market volume (slot and table) was also weaker, recording a steep 20 per cent year-on-year drop.

Nonetheless, looking beyond the Covid-19 period, the analysts are maintaining Genting Singapore's market weight on the Republic's gaming sector.

"Despite the interim caution amid the deep earnings destruction caused by the lockdowns undertaken by almost all governments in Asia, we are still positive that the sector will outperform and recover swiftly when the Covid-19 impact tapers off," said Mr Khoo and Mr Goh.

Source: UOBKH

https://www.businesstimes.com.sg/compan ... et-of-s080

[winston]

not vested

BRIEF-Genting Singapore Posts Q1 Group Revenue Of S$406.9 Million

May 13 (Reuters) - Genting Singapore Ltd :

* SUSPENSION OF OPERATIONS ARE LIKELY TO CONTINUE INTO NEAR FUTURE
* Q1 GROUP REVENUE OF S$406.9 MILLION, DOWN 36%
* REMAINS PESSIMISTIC ON ITS OUTLOOK FOR REMAINING YEAR
* FINANCIAL PERFORMANCE FOR 2020 WILL BE SEVERELY AFFECTED
* SOCIAL DISTANCING AND RESTRICTIVE BORDER REGULATIONS WILL CONTINUE TO HINDER ANY MEDIUM TERM RECOVERY
* QTRLY ADJUSTED EBITDA S$146.9 MILLION, DOWN 55%

Source: Reuters

[winston]

BUY for the cheap valuations, stay for the dividend yields

Maintain BUY with a lower TP of SGD0.81 (-4%)

1Q20 results missed our expectations and 2Q20 will likely be worse.

That said, we believe that future quarters beyond 2Q20 will be better as the Covid-19 pandemic is easing.

We slash FY20E earnings by 87% and trim FY21E/FY22E by 5% each; we maintain DPS estimates to offer >5% yields p.a.

At 1.2x FY20E P/BV, GENS’ valuations are not expensive.

We cut our TP to SGD0.81 from SGD0.84 as we switch valuation methodology to DCF from EV/EBITDA, incorporating a gradual recovery phase from 2H20.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... aa4ebe.pdf

[winston]

Genting Singapore's 1Q earnings tumble 55% to $149 mil as Covid-19 impact turns 'devastating'

by Uma Devi 13/05/2020

SINGAPORE (May 13): Thus far, integrated resort and casino operator Genting Singapore (GENS) has benefited from Singapore’s status as a tourist hub. But with the Covid-19 outbreak stalling travel and hospitality industries, the company is now facing headwinds.


In its latest business update, the company says the impact of the pandemic was first felt in late January, with the situation taking a turn for the worse over the quarter as countries took to implementing travel restrictions and border closures to contain the spread of the virus.

For 1QFY2020 ended March, GENS booked earnings of $148.9 million, some 55% lower than earnings of $329.7 million a year ago. In particular, earnings from the company’s Singapore Integrated Resort (IR) plunged 53% to $159.3 million.

GENS says the severity of the Covid-19 impact on its earnings was partially mitigated by a series of cost control measures, including instituting a pay reduction scheme for all managerial team members and encouraging all employees to take annual leave.

Revenue for the quarter fell 36% year-on-year to $406.9 million.

Contributions from both the gaming and non-gaming segments for the Singapore IR fell 38% and 34% respectively, while revenue from the others segment fell 30%.

“The pandemic has been absolutely devastating to the tourism industry across the world,” says GENS.

“Our flagship property, Resorts World Sentosa (RWS) too, has been severely affected and will continue to face significant challenges,” it adds.

In light of the stricter circuit breaker measures announced by the Singapore government on Apr 3, GENS took what it terms an “unprecedented step” of suspending almost all operations at RWS in compliance with the directives.

“The suspension of operations is likely to continue into the near future,” says GENS, adding that social distancing and restrictive border regulations will continue to hinder any medium term recovery for RWS.

Given the fluidity of the unfolding COVID-19 situation, GENS says it remains pessimistic on its outlook for the remainder of 2020, and is bracing for its financial performance for the year to be “severely impacted.”

In a bid to cope with potentially volatile and long drawn recovery process, the company has adopted an ‘agile and continuous learning mindset’ to align its cost structure with the new norm.

“Our group has strategically built up a strong balance sheet over years that will enable us to continue operating smoothly and pursuing growth both at RWS and globally within our core expertise despite the ongoing crisis,” says GENS.

The company is also quick to stress that its Japan IR investment continues to be a part of its long-term growth strategy. Earlier in the day, Las Vegas Sands Corp said it will not push forward to bid for a license in Japan.

GENS has reportedly been engaged in the ongoing Request for Concept (RFC) by Yokohama City and is anticipating the launch of the Request-for-Proposal (RFP) in 2H2020.

Source: The Edge

https://www.theedgesingapore.com/capita ... paign=FREE

[behappyalways]

Genting Singapore posts net loss of $163.3 mil in 2Q20, marks 'worst quarterly performance' since opening
https://www.theedgesingapore.com/capita ... erformance

[winston]

not vested

Genting Singapore (GENS SP) - Recovery hinges on international travellers

Genting Singapore (GENS) recorded a net loss of SGD163mn (1Q: net profit of SGD47mn), but this is well expected given the circuit breaker.

However, the absence of an interim dividend is likely to be a disappointment to the market.

With COVID cases re-emerging around the globe as economies re-open, business normalisation might take longer than expected.

We expect GENS to resume dividend payouts only when there is more visibility of recovery, which might not be until early next year.

International travellers accounted for 75% -80% of total traffic to Resorts World Sentosa pre-crisis, which will be a critical factor for breakeven.

On longer-than-expected impact from the pandemic, we trimmed GENS FY20/21e EBITDA by 87%/40% and lowered our price target to SGD0.68 (from SGD0.83), which is based on 8x FY21 EV/EBITDA. HOLD.

Source: OCBC