Genting Singapore eyes Japan expansion

It has been hiring a Japanese team to bid for an Integrated Resort project.

Genting Singapore could find a new opportunity in Japan amidst the enactment of the country’s Integrated Resort (IR) Implementation Bill, DBS Equity Research and OCBC Investment Research (OIR) said.

DBS believes that there is a heightened interest of the firm to potentially win a bid in developing an IR in Japan casino over the next one to two years. According to OIR, the firm has been hiring a Japanese team to prepare for said bid.

Also read: Genting Singapore eyes Osaka casino

Despite a possible opportunity from the Japanese market, DBS thinks that the firm could face risks from a slower-than-expected recovery or a decline in Genting Singapore’s VIP and mass divisions.

“We believe that the weaker earnings before interest, taxes, depreciation, and amortization (EBITDA) performance may weigh on the stock in the near-term, but still expect VIP rolling volumes to continue to trend upwards while margins remain robust,” OIR commented.

OIR also thinks that the firm’s non-gaming segment will continue to fare well amidst healthy visitor arrivals in Singapore.

Genting Singapore’s profit rose 3% YoY to $394.8m in H1 2018 from $382.9m as revenue inched up 4% YoY to $1.23b from $1.18b. Its gaming revenue hit $913.6m in H1 which is up 4% YoY from $876.6m a year ago.