In an updated research note on Nov 14, DBS's Jason Sum is of the view that Genting Singapore (SGX:G13
) 's near-term prospects remain bright as sustained momentum in tourist arrivals should enable footfall at RWS to normalise by early to mid-2024, while pent-up demand should also translate to higher spending per visitor.
Genting Singapore's better-than-expected 3QFY2023 earnings announced last week has sent its share price up by 7.06% to 91 cents as at 9.36am today, even as analysts have mixed reactions over the revised expansion budget that is significantly higher than earlier indicated, as the resort operator chose to focus on higher-end offerings amid a general increase in costs.
Genting Singapore's $6.8 billion expansion spend, announced by the company on Nov 10, far exceeds the $5 - $5.5 billion capex projected by DBS Group Research and the $4.5 billion announced back in April 2019.
