SINGAPORE (Oct 26): CIMB is maintaining its “buy” call on Genting Singapore (GENS) with a target price of $1.35.
Marina Bay Sands (MBS) reported a hold adjusted-property EBITDA of US$442 million ($601.8 million), rolling chip volume of US$9.4 billion, non-rolling chip volume of US$943 million and slot handle takings of US$3.7 billion
Meanwhile, VIP gross gaming revenue (GGR) for 3Q17 increased 32% y-o-y to US$311 million compared to US$236 million last year, mainly due to higher rolling-chip win rate of 3.29% compared to 3.25% last year, but lower than 4.42% recorded in 2Q17.
In a Thursday report, analyst Cezzane See says, “Noteworthy were rolling chip volumes that maintained the y-o-y growth trend seen in 2Q17 following sequential y-o-y declines in 1Q16-1Q17. MBS reiterated its strong commitment to cost controls, which helped to enhance profitability and margins.”
GENS will be posting its 3Q17 results on Nov 6.
Hence, the analyst estimates 3Q17 adjusted EBITDA was $285.1 million on the back of y-o-y uplift in VIP and mass GGR as well as the group’s strong cost control efforts.
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Shares in Genting Singapore are trading 5 cents of 4.17% more at $1.24 or 24.4 times FY17 earnings with a dividend yield of 2.50%.
