Genting Singapore's First-Half Earnings Soar
Shares of Genting Singapore, a prominent casino operator, experienced a 4.3% surge to reach 0.96 Singapore dollars on Friday following a remarkable performance in the first half of the year. This increase translates to a 16% gain over the past twelve months.
Genting Singapore announced a substantial rise in net profit for the first six months, reaching S$276.7 million (US$205.0 million), compared to S$84.4 million the previous year. The surge in earnings can be attributed to the recovery of foreign tourist arrivals.
The company's revenue rose by an impressive 63% to S$1.08 billion, with operating profit witnessing a substantial surge from S$110.2 million in the prior year to S$350.8 million.
In light of the recent share-price weakness, Hong Leong Investment Bank has upgraded Genting Singapore from hold to buy and revised the target price to S$1.24 from S$1.09, citing a favorable risk-reward profile.
Resorts World Sentosa, operated by Genting Singapore, is expected to benefit from the return of foreign tourists, along with the positive spillover effects of notable music concerts scheduled to take place in Singapore in late 2023 and 2024, according to Hong Leong analyst Brian Chin Haoyan.
Citi has also decided to increase its target price on Genting Singapore to S$1.26 from S$1.23 while maintaining its buy rating, stating that the stock appears attractive. Furthermore, Citi has raised its earnings forecasts for the company for the years 2023 to 2025 by 3%-8% to reflect the latest earnings performance and operating trends.
Genting Singapore has declared an interim dividend of S$0.015, surpassing the S$0.01 dividend declared a year ago. Citi expects the final dividend to increase to S$0.025 from S$0.02 in 2022.
Overall, Genting Singapore has impressed investors and analysts alike with its strong financial performance, and it is poised to capitalize on the revival of the tourism industry in Singapore.
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