Genting Singapore - Maybank Research 2022-11-09: Less Reliant On Chinese Visitors Post-COVID

• Under a ‘blue sky’ scenario where Resorts World Sentosa (RWS) FY24E mass market gross gaming revenue (GGR) recovers to 100% of 2019 levels driven by the return of Chinese tourists, our FY24E earnings for Genting Singapore (SGX:G13) could be lifted by 12% and our DCF-based target price could be raised by 6% to S$0.91.
• - Read this at SGinvestors.io -
• Maintain HOLD on Genting Singapore and DCF-based target price of S$0.86.

China visitors were very important to Genting Singapore pre-COVID…

• In 2019, we understand that Chinese VIPs accounted for 30-40% of RWS VIP volume and Chinese visitors accounted for ~1/3 of RWS mass market GGR.
• We understand that Chinese VIPs used to account for ~50% of RWS VIP volume before 2016 but this percentage eased to 30-40% of RWS VIP volume by 2019 because China imposed stricter capital controls in 2016 which made it a lot more difficult for Chinese VIPs to remit money out of China to gamble overseas.

… but Singapore gaming has changed a tad post-COVID.

• - Read this at SGinvestors.io -
• For the mass market, we gather that 2Q22 industry mass market GGR recovered to ~90% of 2Q19 levels (RWS: ~85%) even without Chinese visitors. We understand that this is because most Singaporean gamblers chose to gamble at home rather than cross the border to gamble in Malaysia.

EPS/Target price could be raise by 12%/6% respectively.

• Read more at SGinvestors.io.

Yin Shao Yang Maybank Research | https://www.maybank-ke.com.sg/ 2022-11-09 SGinvestors.io

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