Maintain HOLD Call on Genting Singapore

• Genting Singapore (SGX:G13)'s 3Q21 results were weak but expected as new COVID-19 cases surged in Singapore. We trim our earnings per share estimates by 5-9% on lower interest income but leave our EBITDA estimates largely unchanged.
• While we expect 4Q21 to be similarly weak, we expect FY22E to be better due to the return of Malaysian gamblers. Singapore and Malaysia will launch a vaccinated travel lane on 29 Nov 2021. Yet, we opine that this news has already been priced in.
• Maintain HOLD call on Genting Singapore.

3Q21 Results Weaker Y-o-y & Q-o-q But Not Unexpected

• Genting Singapore's 3Q21 core net profit of S$26.0m (-64% y-o-y, -61% q-o-q) brought 9M21 core net profit to S$137.5m (+1294% y-o-y) which was within our expectations despite coming in at 81% of our FY estimate.
• We expect 4Q21 core net profit to be similar to 3Q21, bringing FY21 core net profit to S$160m- S$170m. 9M21 revenue of S$806.3m (+8% y-o-y) was within our expectations at 72% of our FY estimate.
• No dividend was declared in 3Q21 but we expect Genting Singapore to declare a final dividend of S$0.01 in 4Q21.

4Q21 May be Similarly Weak…

• 3Q21 results were weak largely due to new COVID-19 cases in Singapore rising target price is unchanged.

… But SG-MY VTL a Step in the Right Direction

• Despite the weak step to other entry points being reopened to Malaysians (e.g. Seletar Airport, Causeway and Second Link).

Source: Maybank Kim Eng Research - 10 Nov 2021