Genting Singapore reveals high hopes for a rebound

That's in the next 12-18 months.

According to Maybank Kim Eng, GENS is confident that they will recover over the next 12-18 months due to the recovering Chinese economy and the recently-concluded Chinese leadership transition on 17 Mar 2013. 

Chinese VIPs still account for about 50% of Singapore VIP volumes. Singapore was established as an offshore CNY hub on 8 Feb 2013 and ICBC, the clearing bank started clearing CNY transactions on 2 Apr 2013.

This will likely lead to more CNY deposits in Singapore and drive Chinese-sourced VIP volume growth even further.

Here's more from Maybank Kim Eng:

On its close to SGD1b receivables balance as at end-2012, GENS is comfortable with its aging and does not expect to provide much more as a percentage of VIP GGR this year than it did in 2012 (2012: 8%).

We also note that Las Vegas Sands stated in a 7 Mar 2013 event that Marina Bay Sands too had a SGD1b receivables balance as at end-2012 and was also comfortable with its aging although its Singapore VIP volumes outlook was more guarded than GENS’.

More guarded on mass market segment. We believe that Singapore mass market GGR was flattish (+3% YoY) in 2012 at SGD3.8b due to a strong SGD against especially the IDR and MYR and rising average room rates (ARR) eating into tourist budgets for gaming.

GENS concurred and reiterated that it will invest SGD150m over the next two to three years to build a 500-room hotel in Jurong that will likely offer cheaper room rates and a large car park to entice Malaysian gamblers to stay and gamble longer at Resorts World Sentosa (RWS).