RWS Bulk Sharing Fears, But Strong Termination To 1H: Analysts

Singapore casino operator Genting Singapore’s first-half results were “better” than feared since the first quarter, the two brokerage houses said.

A third pointed out that while the market for people visiting city-state from mainland China was “mild” compared to pre-pandemic levels, resort World Sentosa (RWS) properties benefited from customers in its immediate neighbor.

Genting Singapore’s first-half net profit rose 227.7% year-on-year to S$276.7 million ($250.6 million), the company said on Thursday.

“Despite Chinese visits to Singapore in the first half of the year slumping to 23% of the level in the first half of 2019, operations at RWS, including VIP volumes and non-game revenues, have still recovered in a “broad-based” manner,” Maybank Research Pte Ltd analyst Samuel Yin Xiao Yang said in a note on Friday.

Maybank added: “We believe RWS is better positioned to withstand a potential slowdown in China’s economy than [Macao] consolidated resorts.”

Resorts World Sentosa, along with Marina Bay Sands, run by Las Vegas Sands Corp., accounts for half of Singapore’s casino Duopoly.

“Genting Singapore’s Q2 2023 results were better than expected thanks to a higher-than-theory VIP win rate,” Nomura analysts Tushar Mohata and Alpha Agarwal wrote in a note on Friday.

Banking group JP Morgan said VIP “lucky” factors in the home gave Genting Singapore a profit of about S$55 million in the second quarter.

JP Morgan said: “The completion of the renovation of the Festival Hotel in June 2023 will see “further gains” in overall performance due to the additional room inventory, as well as improvements in the Northern Hemisphere summer holiday season and flight service.”

Maybank expects Genting Singapore to have more visitors, especially from China, in the second half of the year “regardless of the global recession.”

“Seat capacity from China to Singapore recovered to 74% of pre-COVID levels in July 2023,” Maybank analyst Mr Yin noted.

JPMorgan, however, expressed concern about Resort World Sentosa losing its market share to Marina Bay Sands in the public market gambling portion of the business.

BY: 카지노사이트

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