Genting Singapore Limited (SGX: G13) presents a compelling investment opportunity for discerning investors, blending a track record of resilient performance with promising prospects.
The firm stands as the operator and owner of Resorts World Sentosa (RWS), one of Southeast Asia’s most prominent fully integrated destination resorts, establishing itself as a key player in the region’s leisure and hospitality sector.
Today, we aim to shine a spotlight on Genting Singapore, revealing why this gaming giant could be a potential goldmine for discerning investors.
1. Robust financial recovery
An initial glance at Genting Singapore’s H1 2023 financials reveals a remarkable recovery narrative.
The company’s net profit soared, more than doubling to S$276 million, while revenue experienced a significant surge to S$1.08 billion.
This robust financial rejuvenation was primarily fueled by a substantial influx of foreign visitor arrivals, underscoring the company’s appeal to an international audience.
2. Diverse revenue streams
Diving deeper into its operational facets, Resorts World Sentosa (RWS) emerges as a cornerstone of Genting Singapore’s success.
RWS has showcased a commendable recovery, especially in the non-gaming business segment.
This division’s rebound has played a pivotal role in driving increased revenues and enhancing attendance at various attractions, signalling the diverse appeal of the resort beyond its gaming offerings.
3. Return of Chinese tourists to boost earnings
Aside from that, Genting Singapore is strategically positioned to capitalise on anticipated demographic trends.
The expected arrival of Chinese tourists, especially during notable periods such as the Golden Week in October, opens up avenues for further revenue generation.
This anticipated influx aligns seamlessly with Genting Singapore’s established presence in the leisure and hospitality landscape, potentially translating to heightened patronage and increased profitability.
Attractive valuation for investors looking to invest in the leisure and gaming business
A key point for potential investors to consider is Genting Singapore’s stock price dynamics.
Currently, the company’s stock price hovers not far from its 52-week low of S$0.76, recorded in October 2022.
This pricing scenario presents a potentially lucrative entry point for investors, marrying the prospect of acquiring stakes in a recovering and strategically positioned company at a comparatively lower investment threshold.
This pricing context, coupled with Genting Singapore’s operational resurgence, contributes to the company’s allure as a viable investment.
Investors have the opportunity to leverage this lower entry point to participate in the company’s future growth trajectory, fueled by both its internal strategic initiatives and external market dynamics.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
