Genting Singapore Ltd Q1 FY19 Results

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Last month, Genting Singapore announced It will invest S$4.5b in renewal and refresh of the IR. The funding will be by internal funds and borrowings (which will likely start only from end-2020). The upgrading writeup is available here

Let’s see how Genting Singapore fare for Q1 FY19.

 

Genting Singapore Ltd released its Q1 FY19 results after trading hours on 9th May. Revenue drop 5% and gross profit of 16%. The figures are S$640 mil and S$286 mil respectively.

Due to lowered revenue, Net profit drops 5% to S$205 mil.

Gaming revenue drops 8% to S$430 mil while the non-gaming sector is increasing steadily. This is the eighth consecutive quarter of year-on-year
revenue growth with higher spends per visitor. Hotel occupancy remained high at 93% during the quarter which means more tourists will be spending on F&B and attractions within RWS.

Under their debt which is due for repayment on 23 March 2020 is reclassified to current liabilities. The amount is S$680 mil and was voluntary full prepayment by the Group towards the end of Q1 financial period. 

With the expansion of IR and Japan IR, I’m afraid Genting Singapore has to spend more on Capax and getting resources for Japan IR when the government officially publishes the National Guidelines and likely we won’t see the Return of Investments within the next 5 years.

On my previous write up, my target price to enter this stock is 84 cents and it seems the target price is approaching. As of writing this post, the trading price is 91 cents.

Author: The Financial Guy

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