- Genting Singapore (SGX:G13)'s 2H21 results were weak due to new COVID-19 cases surging in Singapore. Going forward, Genting Singapore expects its outlook to be better albeit from next year onwards.
- Our FY22E/FY23E earnings forecast for Genting Singapore are little changed and we introduce FY24E earnings. The S$4.5b RWS 2.0 reinvestment programme will proceed.
Earnings and Dividends Within Our Expectations
- Genting Singapore's 2H21 core net profit of S$38m (-80% y-o-y, -66% h-o-h) brought FY21 core net profit to S$149.5m (+20% y-o-y), which was within our expectations at 94% of our FY estimate but below consensus’ expectations at 76% of consensus FY estimate.
- FY21 EBITDA of S$448m (+5% y-o-y) was also in-line with our expectations at 99% of our FY estimate. The proposed final dividend of S$0.01 was also in-line with our expectations at 100% of our FY estimate.
Gradually Better Outlook Consistent With Ours
- With Singapore gradually reopening its borders, Genting Singapore is more confident on its FY19 levels then (VIP: 73%, mass market: 92%).
RWS 2.0 to Proceed; to Establish Dividend Policy
- From 2Q22, Hard Rock Hotel Singapore, Hotel Michael and Festive Hotel will be progressively renovated ( > 1,200 rooms), Resorts World Convention Centre will be upgraded and construction of Minion Land and Singapore Oceanarium will commence. All in all, ~S$400m relating to RWS 2.0 will be invested in FY22E
- On another note, Genting Singapore intends to establish a dividend forward.
Source: Maybank Research - 18 Feb 2022
