Genting Singapore is poised for a robust first quarter in 2024, driven by the resurgence of Chinese tourism, the festive impact of Chinese New Year, and the positive aftermath of recent high-profile events in Singapore. Analysts at Nomura foresee a seasonally strong performance, anticipating a notable uptick in visitor volumes and expenditure, particularly from Greater China.
Visitor Arrivals Surge:
The first quarter of 2024 witnessed a significant rise in visitor arrivals to Singapore, with a notable influx from Greater China. This surge was propelled by Chinese New Year celebrations, high-profile concerts, and the mutual visa exemption between Singapore and China, which began in February.
Marina Bay Sands’ Performance:
Marina Bay Sands (MBS), Genting Singapore’s rival, reported encouraging figures for Q1, with sequential growth in VIP and mass volumes. This performance is seen as a positive indicator for Genting Singapore’s Resorts World Sentosa (RWS), suggesting a favorable environment for tourism-related businesses in Singapore.
Flight Resumption by Singapore Airlines:
The resumption of Singapore Airlines’ flights to key Chinese cities post-suspension alleviates concerns about potential declines in Chinese visitor traffic to Singapore.
Financial Outlook
The financial landscape for Genting Singapore appears promising, with expectations of improved earnings for Q1 2024 compared to the previous quarter. Nomura highlights the anticipated reduction in impairments as a significant contributing factor to this positive forecast.
Investment Perspective
Nomura’s investment stance on Genting Singapore remains bullish, maintaining a “Buy” rating. The firm forecasts substantial growth metrics for RWS in 2024, projecting a 28% year-on-year increase in rolling chip volume, alongside 5% growth in both mass table drop and slot handle.
Genting Singapore is positioned for a strong first quarter of 2024, driven by the resurgence of Chinese tourism, favorable visa policies, and upbeat industry indicators as evidenced by Marina Bay Sands’ performance. The easing of flight suspensions by Singapore Airlines further underscores positive sentiments surrounding Singapore’s tourism outlook. With an optimistic financial outlook and robust growth projections, Genting Singapore presents an enticing opportunity for investors eyeing the Asian tourism and hospitality sector.