Genting Goes Public in Malaysia and Singapore: 2023's Top Gambling Choice.

Ritu77

Daiwa Research Analysts Pick Genting Singapore as Top Industry Choice for 2023 Due to the return of tourists to Singapore and significant growth potential at Sentosa World Resort, Genting Malaysia, and Malaysia-based gaming company RGB International Bhd are also rated as attractive buy targets, ahead of Macau stocks currently in short-term recovery. Daiwa noted in its report that Genting Singapore stands out due to its past reliance on tourists, with an estimated 20% of its revenue coming from the mainland before the pandemic. The market is expected to remain positive about the Singapore gaming industry, including Genting Singapore, in 2023, primarily based on the meaningful recovery in core profitability, expected to act defensively amid current market volatility.

Regarding industry dealer RGB, Daiwa Research expressed that with a significant backlog of slot machine orders, the company's net profit for this year is expected to fully recover to pre-pandemic levels, approximately MYR 40 million (USD 12.3 million). Analysts wrote, "As emerging gaming jurisdictions recover steadily and reopen, RGB's revenue will continue to be in focus. They maintain a 'Buy' rating on RGB for both Genting Singapore and Malaysia entities."

However, despite the strong recovery expected next year, they will still give a 'Market Weight' rating to the Macau gaming industry. Analysts said that after months of stock market gains, the range of EV/EBITDA valuations for Macau gaming stocks has rebounded significantly above pre-pandemic levels, mainly because investors have partly digested further GGR recovery in 2024, noting that the resumption of dividends may take time.

Fundamentally, valuations of Macau gaming companies in 2024 should be lower than pre-pandemic average levels, as the commitment of companies to capital expenditure on non-gaming facilities will reduce operating cash flow by 19%. Therefore, companies need time to restore their pre-pandemic dividend policies. In contrast, the bank expects Genting Singapore and Genting Malaysia to announce "generous" dividends by the end of this year.

Samiksha

Is this "best choice" really true?

Iti9

Where is the "best" exactly, and can it guarantee us a 100% profit?

Kabir903

Anyway, this is just for information, and it doesn't have a direct impact on us, right?