CGS International
July 24, 2025
Genting Singapore Poised for Profitability Surge in 2Q25: Key Insights, Peers Comparison, and Financial Outlook
Introduction: Positive Momentum for Genting Singapore in 2Q25
Genting Singapore (GENS), a leading player in Singapore’s gaming and hospitality sector, is on track for a notable turnaround in its 2Q25 financials. Despite a challenging tourism environment and ongoing renovations at Resorts World Sentosa (RWS), the company is expected to deliver robust growth, with a forecasted adjusted EBITDA of S\$250 million, up 24.2% year-on-year and 6.0% quarter-on-quarter.
Peer Performance Sets the Stage for Genting Singapore’s Growth
Marina Bay Sands (MBS), GENS’s main competitor, reported a record hold-adjusted EBITDA of US\$661 million for 2Q25—an impressive 47.5% year-on-year and 26.9% quarter-on-quarter increase during a seasonally softer period due to post-Chinese New Year tourism lulls. MBS’s rolling chip volume surged 47.2% year-on-year and 11.4% quarter-on-quarter to reach US\$9.0 billion (approximately S\$11.4 billion), commanding about 55% of the rolling chip market share.
GENS is projected to follow a similar upward trend, with estimated rolling chip volume of S$9.3 billion for 2Q25—a 5-7% quarter-on-quarter increase. However, mass table games and slots growth may be more subdued due to RWS’s extensive renovation, including the Hard Rock Hotel upgrade, which limited hotel room availability for mass gamers.
Resorts World Sentosa 1.5 Nears Completion: New Attractions Drive Future Growth
GENS’s RWS 1.5 project is nearly complete, positioning the company for incremental gains in the second half of 2025. Key highlights include:
- Singapore Oceanarium: Reopened on July 24, 2025, replacing the SEA Aquarium.
- Minion Land at Universal Studios Singapore (USS): Launched in February 2025.
- Revamped Weave Retail Space: Opened in early July 2025.
- The Laurus Hotel: An all-suite hotel replacing Hard Rock Hotel, open for bookings from October 2025.
These enhancements are expected to boost visitor footfall and spending, supporting further profitability improvements in 2H25.
Investment Thesis: Inflection Point Achieved, Reiterate Add Rating
GENS is viewed as having overcome the worst of its attractions downtime, with 2Q25 marking a return to year-on-year earnings growth. The target price remains at S\$1.05, pegged at 8x FY26F EV/EBITDA (0.5 standard deviations below the company’s 5-year mean), reflecting the current muted growth in Singapore’s tourism sector.
- Key Re-rating Catalysts: Greater-than-expected popularity of new attractions and a rebound in Singapore tourism.
- Downside Risks: Continued sluggishness in tourism, lower visitor numbers and spending, and weaker-than-expected win rates.
Consensus and Shareholder Overview
- Consensus Ratings: 9 Buy, 9 Hold, 0 Sell
- Current Price: S\$0.76
- Target Price: S\$1.05 (38.6% potential upside)
- Market Cap: S\$9,183 million (US\$7,187 million)
- Major Shareholders: Genting Bhd (52.7%), Vanguard Group (1.4%), Blackrock (1.4%)
Financial Performance Snapshot
| Year |
Revenue (S\$m) |
Operating EBITDA (S\$m) |
Net Profit (S\$m) |
EPS (S\$) |
EPS Growth |
Dividend (S\$) |
Dividend Yield |
EV/EBITDA (x) |
P/BV (x) |
ROE |
| 2023A |
2,418 |
1,025 |
634.4 |
0.053 |
86.5% |
0.035 |
4.61% |
5.49 |
1.12 |
7.84% |
| 2024A |
2,530 |
960 |
594.2 |
0.049 |
-6.3% |
0.040 |
5.26% |
5.92 |
1.11 |
7.21% |
| 2025F |
2,646 |
1,057 |
604.2 |
0.050 |
1.7% |
0.040 |
5.26% |
5.47 |
1.09 |
7.23% |
| 2026F |
3,031 |
1,249 |
687.6 |
0.057 |
13.8% |
0.040 |
5.26% |
4.89 |
1.06 |
8.07% |
| 2027F |
3,173 |
1,302 |
695.3 |
0.058 |
1.1% |
0.040 |
5.26% |
5.04 |
1.05 |
8.02% |
Genting Singapore vs. Regional and Global Peers
Malaysian Peers
| Company |
Ticker |
Reco. |
CY25F P/E |
CY26F P/E |
CY25F EV/EBITDA |
CY26F EV/EBITDA |
Dividend Yield 25F |
Dividend Yield 26F |
Recur. ROE 25F |
Recur. ROE 26F |
P/BV 25F |
P/BV 26F |
Net Gearing 25F |
Net Gearing 26F |
| Genting Singapore |
GENS SP |
Add |
15.2 |
13.4 |
5.5 |
4.9 |
5.3% |
5.3% |
7.2% |
8.1% |
1.1 |
1.1 |
-40.3% |
-35.6% |
| Genting Malaysia |
GENM MK |
Hold |
27.2 |
21.5 |
5.9 |
5.5 |
4.1% |
4.0% |
3.4% |
4.3% |
0.9 |
0.9 |
72.3% |
72.5% |
| Genting Bhd |
GENT MK |
Add |
11.6 |
9.7 |
5.3 |
5.2 |
2.9% |
2.9% |
3.1% |
3.7% |
0.4 |
0.4 |
28.6% |
29.1% |
Korean Peers
| Company |
Ticker |
Reco. |
CY25F P/E |
CY26F P/E |
CY25F EV/EBITDA |
CY26F EV/EBITDA |
Dividend Yield 25F |
Dividend Yield 26F |
Recur. ROE 25F |
Recur. ROE 26F |
P/BV 25F |
P/BV 26F |
Net Gearing 25F |
Net Gearing 26F |
| Paradise |
034230 KS |
Add |
23.1 |
20.9 |
10.7 |
9.6 |
0.8% |
0.8% |
4.5% |
4.8% |
1.0 |
1.0 |
20.2% |
12.3% |
| Grand Korea Leisure |
114090 KS |
Add |
20.0 |
17.2 |
9.4 |
9.4 |
2.5% |
2.9% |
11.3% |
12.6% |
2.2 |
2.1 |
-34.6% |
-34.5% |
| Kangwon Land |
035250 KS |
Add |
12.9 |
12.1 |
2.5 |
2.0 |
4.5% |
4.9% |
8.1% |
8.5% |
1.1 |
1.0 |
-31.3% |
-33.5% |
Global Peers
Key global comparators include Melco Resorts, MGM Resorts International, Wynn Macau, Wynn Resorts, and Las Vegas Sands. Notably, Las Vegas Sands achieved a CY25F P/E of 18.9 and a dividend yield of 2.0%, while Melco Resorts is expected to have a CY25F P/E of 21.9 but negative ROE due to recent challenges.
ESG Highlights: Responsible Gaming and Green Initiatives
GENS received an A- combined ESG score in 2024, reflecting its commitment to responsible gaming and sustainability. The company operates within Singapore’s rigorous regulatory framework and continues to strengthen compliance, especially after resolving past due diligence lapses. Initiatives under the RWS 2.0 project include green infrastructure enhancements to reduce environmental impact.
Recent improvements in GENS’s controversies score (A+ in 2024, up from B- in 2023) are credited to remedial actions after regulatory fines for customer due diligence gaps. The company has implemented facial recognition to screen for barred patrons and those on terrorist lists, enhancing its anti-money laundering protocols.
GENS aims to further improve its governance pillar through expanded CSR disclosures and ongoing review of long-term sustainability targets aligned with the UN SDGs, the Paris Climate Agreement, and Singapore’s own sustainability blueprint.
Key Ratios and Operational Drivers
- Revenue Growth: 4.6% in 2024, with a strong projected 14.6% in 2026.
- Operating EBITDA Margin: Expected at 40.0% in 2025, rising to 41.2% in 2026.
- Net Cash Per Share: S\$0.28 in 2025, decreasing to S\$0.22 by 2027 due to ongoing capex and dividends.
- ROIC: 13.5% in 2025, peaking at 14.9% in 2026.
- VIP Chip Volume Growth: Forecasted at 5% annually from 2025 to 2027, with a stable 3% VIP chip win rate.
- Mass Market Drop Growth: Projected at 8.1% in 2025 and 10.6% in 2026.
Balance Sheet Strength
GENS maintains a robust balance sheet, with S\$3.4 billion in cash and equivalents expected by end-2025 and zero debt. Shareholders’ equity is forecasted to rise from S\$8.2 billion in 2023 to S\$8.7 billion by 2027. The company’s net cash position, strong free cash flow, and prudent capital management support ongoing investments and generous dividends.
Conclusion: GENS Ready for the Next Growth Phase
GENS is set to benefit from the completion of its RWS 1.5 project and the relaunch of major attractions, which should drive incremental profitability in the coming quarters. Combined with healthy financials, strong ESG practices, and a clear recovery in the tourism sector, Genting Singapore stands out as a compelling investment opportunity in the regional gaming and hospitality sector.
Stock Ratings and Recommendation Framework
- Add: Total return expected to exceed 10% over the next 12 months.
- Hold: Total return expected to be between 0% and 10%.
- Reduce: Total return expected to be negative.
Most analysts maintain an “Add” rating on GENS, reflecting its attractive risk-reward profile as it enters a new phase of growth and operational excellence.
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