Genting Singapore (SGX: G13) remains undervalued despite posting weaker earnings and the surprise announcement that CEO Tan Hee Teck will step down on May 31, according to analysts.
The company reported a 20% drop in revenue to S$626.2 million, while net profit plunged 41% to S$145 million year-on-year, impacted by lower VIP win rates and room inventory constraints during Hard Rock Hotel’s renovation under the RWS 2.0 upgrade.
Morningstar’s Jennifer Song noted that the results were within expectations and maintains a fair value estimate of S$0.96, above the closing price of S$0.715 on May 16. She pointed out that the weaker performance was also due to the high base in 2024, when tourism rebounded sharply after Singapore-China visa relaxations.
CGS International’s Tay Wee Kuang also acknowledged the earnings miss but kept an “add” rating with a target price of S$1.05, citing optimism about the second half of the year.
Analysts are hopeful that H2 2025 will mark a turnaround, driven by new attractions such as a super-luxury, all-suite hotel, the Singapore Oceanarium, and expanded retail and dining offerings. These additions are expected to attract both tourists and locals, helping Genting Singapore regain ground lost to rival Marina Bay Sands in gross gaming revenue.
Tan’s departure triggered a negative reaction in Genting-linked stocks in Malaysia, with investors expressing renewed concerns over corporate governance.
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