Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Genting Singapore is a prominent player in the hospitality and gaming sector, primarily known for its integrated resorts and leisure facilities. It stands to benefit significantly from economic changes, particularly in the Chinese market.

Recent Developments

The report highlights that the Chinese government has unveiled a series of strong stimulus measures aimed at revitalizing its economy. These initiatives are expected to positively impact various sectors, including hospitality and tourism, which are crucial for Genting Singapore.

Revenue Exposure to China

Genting has meaningful revenue exposure to China, making it well-positioned to capitalize on any upturn in consumer spending driven by the new stimulus measures. The company could see a rebound in visitor numbers and spending from Chinese tourists, enhancing its revenue streams.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 0.875
• Target Price (S$): 1.18
• Potential Upside (%): 34.9%

Market Context

With the anticipated boost in tourism due to the stimulus measures, Genting is expected to benefit from increased foot traffic and spending at its resorts and related services. The positive sentiment surrounding the stock is likely to be bolstered by recovery trends in the broader hospitality industry in Singapore, which is indirectly influenced by the revitalization of the Chinese economy.

Conclusion

Genting Singapore’s strategic positioning and potential for growth following China’s economic stimulus make it a stock to watch. The combination of increased consumer confidence and targeted investments in the hospitality sector places Genting in a favorable light for investors looking for opportunities in the recovery phase.