- Despite higher tax rates, we expect Genting Singapore (SGX:G13)'s earnings to recover to pre-COVID levels this year thanks to higher than pre-COVID gaming revenues. We expect most of the growth in gaming revenue this year to come from Chinese tourists.
- - Read this at SGinvestors.io -
- We maintain our earnings estimates but roll forward our valuation base year to end-FY24E from end-FY23E, leading to a higher DCF-based Genting Singapore's target price of S$1.21 vs S$1.16.
Gaming operations already exceeded pre-COVID levels
- Even before 3Q23, Genting Singapore's mass market (which traditionally contributes ~75% of earnings) was already hitting pre-COVID levels despite the lack of Chinese tourists due to new migrants and wealth created by higher property prices.
- - Read this at SGinvestors.io -
- In fact, the 3Q23 VIP volume of S$11.3b was the highest since 2Q15.
En masse return of Chinese tourists to drive growth
- Read more at SGinvestors.io.
