- Marina Bay Sands or MBS (under Las Vegas Sands Corp), the only domestic peer to Genting, reported better-than-consensus numbers
- Adjusted property Ebitda for MBS rose 184% y-o-y to US$319mil (consensus estimate US$208.6mil)
- Rolling chip volume rose 184% q-o-q to US$5.39bil (consensus estimate $2.78bil)
- MBS’s strong results dispel concerns that recovery for the Singapore gaming sector will be moderate due to the absence of Chinese tourists
- We expect Genting Singapore’s share price to stay firm ahead of its 1H22 results release on 12 August 2022
- Share price should also be supported by the latest unsolicited bid that highlights Genting’s highly attractive valuation
- Stock trades at a significant discount to peers, at 6.5x CY23 EV/EBITDA (peer median of 13.8x)
- This discount is unjustified given the stark divergence between Singapore and Macau – Changi Airport’s handling capacity will return to pre-COVID level of 70mil passengers/yr by October this year whereas all Macau casinos were recently shut because of a resurgence in COVID-19 cases
- Stock has likely found a low at $0.72 recently
- Technical support for the stock is at $0.765, strong still at $0.75
- We currently have a BUY recommendation with a fundamental TP of S$1.00
