Genting Singapore likely in focus after earnings; awaiting news on Japan bidding

A Singapore 10-dollar note Photo by Leslie Shaffer

Shares of Genting Singapore are likely to be in focus on Monday after the integrated-resort operator reported earnings on Friday after the market close.

Nomura said in a note on Friday that the results were bang in line with its expectations, noting that full-year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) matched its estimate for S$1.15 billion, “closing out an impressive turnaround year, with 48 percent year-on-year growth.”

Looking ahead, Nomura forecast 2018 volume growth of around 5 percent, citing room to relax the credit policy from current levels.

It also said it expected newsflow on revamping Resorts World Sentosa this year once capex and regulatory approvals were finalised; “this should improve visitation prospects.”

Watching the lead up to Japan’s bidding

Nomura kept a Buy call on the stock, and snipped its target price to S$1.52 from S$1.53.

It said it expected interest in the stock to remain high in the lead up to Japan’s integrated-resort implementation bill, likely in the summer session of the Diet.

Nomura said that the run up to the Japan bidding should limit any stock downside on any luck-driven quarterly misses.

But it noted it wasn’t building any value accretion from the Japan bidding into its estimates, citing the “binary nature” of the outcome.

The stock ended Friday up 0.78 percent at S$1.30. The February 9 low of S$1.21 may act as a support, while January’s S$1.39 high may act as a cap on the upside.

A Singapore 10-dollar note
Photo by Leslie Shaffer