Tuesday , November 13 2018
Home / Business / PublicInvest surpasses Genting's Singapore Business Profit – Business News

PublicInvest surpasses Genting's Singapore Business Profit – Business News



KUALA LUMPUR: Genting Singapore Ltd Net Profit from 25% year-on-year to $ 210.4m in 3QFY18 was in line with forecasts, PublicInvest Research said.

The research house has kept its earnings forecasts at holding company Genting Bhd because it believes there is a limited risk of the downside given the current stock price level.

"Malaysian gaming makes only about 35% of EBITDA of GENT, so its potential earnings on GENT (about 10%) are relatively small compared to Genting Malaysia, which mostly makes a profit from Malaysia," she said.

PublicInvest has maintained its most impressive rating at Genting with an unchanged target price of 10.70 kunas.

According to PublicInvest, Genting's Singapore 3QFY18 revenue and EBITDA adjusted to the gaming segment, representing 70% of the group's revenue, resulting in a 1% decrease in revenue.

The segment of non-smoking services recorded revenue growth of 9% on the back of higher visitors and average spending of visitors while hotel business continued to outgrow the industry with an average occupancy rate of over 97%.

Ebitda remained unchanged at about $ 320 million.

PublicInvest added that the impairment of customer receivables increased in the order of $ 1 billion to $ 13 million due to greater credit expansion in stronger VIP business, although overall credit policy remained smart.

The research firm said mid-long-term catalysts for Genting include the potential investment by Genting Singapore on the Japanese gaming market, the expansion of the Resorts World in New York, and the completion of an integrated resort in Las Vegas.


Source link