Genting Singapore - CGS-CIMB Research 2022-11-14: Hopeful For Higher Dividends

Genting Singapore - Hopeful For Higher Dividends

  • Genting Singapore (SGX:G13)'s 3Q22 revenue grew 49.1% q-o-q/106.6% y-o-y to S$519.7m, bringing 9M22 revenue to S$1.18bn, in line at 76.3% of our FY22F estimate.
    • 3Q22’s gaming revenue of S$382m reached 90% of the quarterly run rate of S$420m over FY17-19 (pre-pandemic) due to higher contribution from affluent and premium customers who are staying for longer.
    • non-gaming revenue grew at a tamer 28.7% q-o-q (~70% of FY17-19 levels), echoing management’s sentiments that the segment has yet to recover to pre-pandemic levels.
  • Nevertheless, better operating leverage saw Genting Singapore’s adjusted EBITDA reach S$249m in 3Q22, putting its 9M22 adjusted EBITDA at S$518m and ahead at 81.8% our FY22F estimate as margin improved 6.7% points q-o-q from 41.3% to 48.0%.
  • We believe Genting Singapore will continue to benefit from the resumption of signature resort entertainment and lifestyle programmes, such as the Halloween Horror Nights at Universal Studios Singapore (USS) in 4Q22, and the expected completion of upgrading works at Festive Hotel in 1Q23, which will increase room capacity.
  • Nevertheless, we recognise that the strong gaming revenues recorded in 3Q22 could taper off as length of stay shortens on the back of declining airfares and margins could be pressured given rising staff costs.
  • Genting Singapore held a strong cash balance of S$3.33bn as at 1H22. After accounting for the S$0.01 dividend per share payout declared for 1H22 and the redemption of JPY20bn (~S$200m) in unsecured and subordinated bonds, we believe Genting Singapore still has a healthy cash balance in excess of S$2.8bn. We therefore revise our FY22F dividend up to S$0.04, implying S$0.03 to be declared for 2H22, given its current EBITDA run rate of ~S$200m-250m per quarter that will allow Genting Singapore to be self-sufficient to meet capex requirements for RWS 2.0 over the next two years. See Genting Singapore's Dividend History.
  • Reiterate ADD on Genting Singapore with higher target price of S$1.08. We revise our FY22F/23F/24F adjusted EBITDA forecast for Genting Singapore upwards by 15.7%/8.3%/5.3% on the back of stronger gaming revenues, which suggest a swifter recovery boosted by subsequent completion of new facilities under the RWS 2.0 project.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

TAY Wee Kuang CGS-CIMB Research | 2022-11-14
SGX Stock Analyst Report ADD MAINTAIN ADD 1.08 UP 0.920

Previous report by CGS-CIMB:
2022-05-13 Genting Singapore - Time To Step Up Its Game

Check out the most recent target prices at Genting Singapore Target Prices. Listing of analyst research reports at Genting Singapore Analyst Report.

Relevant links:
Genting Singapore Share Price History,
Genting Singapore Announcements,
Genting Singapore Dividends & Corp Actions,
Genting Singapore News Articles


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