Broker Name: OCBC Investment Research Private Limited
Date of Report: 11 August 2025
Genting Singapore: Short-Term Pain, Long-Term Gain – Is Now the Time to Buy?
Investment Overview: Genting Singapore Positioned for Recovery
Genting Singapore (GENS) stands as a leading developer and operator of integrated resort destinations, with its flagship Resorts World Sentosa (RWS) in Singapore. The company is well-placed to benefit from a recovery in Singapore’s tourism sector, supported by recent visa exemptions between Singapore and China and the continued normalization of air travel. The year 2024 marked a period of significant refurbishments for GENS, with expectations that the rollout of new offerings, including RWS 2.0, will spark stronger growth from 2025 onward.
- Current Rating: BUY
- Last Close: SGD 0.75
- Fair Value: SGD 0.96
Recent Performance: 1H25 Results Miss Expectations
The first half of 2025 saw Genting Singapore’s results fall short of expectations, primarily due to lower revenue and margins:
- 1H25 revenue declined 10.4% year-on-year (YoY) to SGD 1.2 billion.
- Gaming revenue dropped 12.3% YoY; non-gaming revenue fell 5.8% YoY.
- Adjusted EBITDA decreased by 25.8% YoY to SGD 423.7 million.
- Net profit slid 34.2% YoY to SGD 234.7 million.
- Quarter-on-quarter (QoQ), Q2 2025 revenue and adjusted EBITDA fell 6.0% and 20.3%, respectively.
- Q2 2025 adjusted EBITDA margin: 31.9% (down from 37.7% in Q1 2025).
- An interim dividend of 2 Singapore cents per share was declared.
Performance was hampered by renovation disruptions, the temporary closure of S.E.A. Aquarium, and higher operational costs. Management attributed post-Covid margin compression to higher taxes and increased labor costs, with expectations for margin improvement in FY26 as new facilities reach full ramp-up.
Key Developments: New Attractions and Facilities
GENS is actively investing in new attractions to drive future growth:
- Minion Land at Universal Studios opened in February 2025.
- Singapore Oceanarium (formerly S.E.A. Aquarium) and the retail precinct WEAVE reopened in July 2025.
- The Laurus Hotel, rebranded from Hard Rock Hotel, set to open in October 2025.
Early footfall has been encouraging for the new attractions, particularly from both locals and tourists. While GENS has lost some gaming revenue market share to peers, the phased completion of RWS 2.0 should help regain share and improve margins. However, a meaningful uplift in EBITDA is only expected from FY26 as these initiatives fully ramp up.
GENS’s new management team is reviewing team structures, setting clear business targets, and focusing on growth as new facilities come online. The company currently trades at an undemanding forward 12-month EV/EBITDA of 5.6x.
ESG Updates: Sustainability Initiatives
GENS’s ESG rating was upgraded in October 2024, recognizing improvements in water management and responsible gaming:
- Casino operations are water-intensive; GENS achieved a 39% reduction in water withdrawal intensity (vs. 2015 baseline).
- Target to reduce municipal water withdrawal intensity by 30% by 2030.
- Responsible gaming program includes self-exclusion, spend limits, annual staff training, and audit programs.
- Overall governance practices rated as average relative to global peers.
Financial Highlights: Key Metrics and Ratios
| SGD million |
1H24 |
1H25 |
% Change |
| Revenue |
1,355.8 |
1,214.5 |
-10.4% |
| Adjusted EBITDA |
570.8 |
423.7 |
-25.8% |
| Net Profit |
356.9 |
234.7 |
-34.2% |
| DPS (S cents) |
2.0 |
2.0 |
0.0% |
Financial Summary: FY24–FY26 Forecasts
| SGD million |
FY24 |
FY25E |
FY26E |
| Revenue |
2,530 |
2,511 |
2,743 |
| Adj. EBITDA |
960 |
859 |
945 |
| EBIT |
589 |
497 |
566 |
| Net Profit |
579 |
507 |
572 |
| DPS (S cents) |
4.0 |
4.0 |
4.0 |
- EV/Adj. EBITDA (x): 5.6 (FY24), 6.6 (FY25E), 6.2 (FY26E)
- P/BV (x): 1.1 (flat across FY24–FY26E)
- Adj. EBITDA margin (%): 37.9 (FY24), 34.2 (FY25E), 34.4 (FY26E)
- Dividend yield (%): 5.4 (consistent over FY24–FY26E)
Valuation Analysis: Peer Comparisons
| Company |
P/E FY25E |
P/E FY26E |
P/B FY25E |
P/B FY26E |
EV/EBITDA FY25E |
EV/EBITDA FY26E |
Dividend Yield FY25E (%) |
Dividend Yield FY26E (%) |
ROE FY25E (%) |
ROE FY26E (%) |
| Genting Singapore (GENS.SI) |
16.2 |
14.2 |
1.1 |
1.1 |
6.0 |
5.4 |
5.4 |
5.6 |
6.6 |
7.4 |
| Las Vegas Sands Corp (LVS) |
19.9 |
18.1 |
12.2 |
5.8 |
10.5 |
9.9 |
1.9 |
2.0 |
63.6 |
67.9 |
| Galaxy Entertainment Group Ltd (0027.HK) |
17.0 |
15.3 |
2.2 |
2.1 |
11.7 |
10.9 |
2.7 |
3.0 |
12.9 |
13.2 |
| Genting Malaysia Bhd (GENM.KL) |
21.8 |
18.4 |
0.5 |
0.6 |
7.2 |
6.9 |
5.0 |
5.2 |
4.1 |
5.1 |
| MGM China Holdings Ltd (2282.HK) |
12.1 |
11.0 |
20.2 |
10.1 |
8.7 |
8.4 |
4.1 |
4.5 |
293.5 |
127.9 |
GENS trades at a lower EV/EBITDA and P/B ratio than most peers, with a solid dividend yield and stable ROE, positioning it as a value play for investors seeking exposure to the Asian integrated resort sector.
Company Overview: Genting Singapore at a Glance
- Incorporated: 1984 (Isle of Man)
- Conversion to PLC: 1987
- Listed: Singapore Exchange, December 2005
- Constituent of FTSE Straits Times Index
- Market Cap: SGD 9.0 billion
- Shares Outstanding: 12,083 million
- Top Shareholder: Genting Bhd (52.5%)
- Free Float: 47%
Principal activities include the development, management, and operation of integrated resorts with gaming, hospitality, leisure, entertainment, and MICE facilities. Resorts World Sentosa is one of Asia’s largest and most awarded destinations, featuring a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore, hotels, Michelin-starred restaurants, and specialty retail outlets.
Segment Breakdown: FY24 Revenue & EBITDA
- Gaming: 69.1% of revenue
- Non-Gaming: 30.5% of revenue
- Others: 0.4% of revenue
| Year |
Adj. EBITDA (SGD m) |
Earnings Per Share (S cents) |
Dividends Per Share (S cents) |
| FY20 |
427 |
0.6 |
1.00 |
| FY21 |
449 |
1.5 |
1.00 |
| FY22 |
774 |
2.8 |
3.00 |
| FY23 |
1,026 |
5.07 |
3.50 |
| FY24 |
960 |
4.79 |
4.00 |
Company Financials: Detailed Income Statement and Ratios
| Year |
Revenue |
Gross Profit |
Operating Income |
Pretax Income |
Net Income |
EPS |
DPS |
| FY20 |
1,063.7 |
231.9 |
115.8 |
113.0 |
69.2 |
0.00 |
1.00 |
| FY21 |
1,067.3 |
326.9 |
227.8 |
226.3 |
183.3 |
0.00 |
1.00 |
| FY22 |
1,725.3 |
601.8 |
456.4 |
456.7 |
340.1 |
0.00 |
3.00 |
| FY23 |
2,417.6 |
882.8 |
774.0 |
776.9 |
611.6 |
0.10 |
3.50 |
| FY24 |
2,530.0 |
836.1 |
727.2 |
731.0 |
578.9 |
0.00 |
4.00 |
Profitability and Credit Ratios
- Return on Common Equity (FY24): 7.02%
- Return on Assets (FY24): 6.30%
- Operating Margin (FY24): 28.74%
- Pretax Margin (FY24): 28.90%
- Net Income Margin (FY24): 22.88%
- Effective Tax Rate (FY24): 20.82%
- Dividend Payout Ratio (FY24): 83.42%
- Sustainable Growth Rate (FY24): 6.96%
- Total Debt/EBIT (FY24): 0.01
- Net Debt/EBIT (FY24): -6.01
- Long-Term Debt/Total Assets (FY24): 0.02
- Net Debt/Equity (FY24): -0.43
Potential Catalysts and Risks
Catalysts:
- Stronger-than-expected growth in VIP and premium mass volumes
- Faster-than-expected tourism recovery
Risks:
- Weaker-than-expected growth in VIP and premium mass volumes
- Implementation of travel restrictions
- Potential cost overruns on new projects
Conclusion: Genting Singapore – Undervalued and Poised for Growth
Despite a challenging first half of 2025, Genting Singapore remains undervalued and well-positioned for future growth as new attractions and facilities ramp up. With a strong balance sheet, attractive dividend yield, and continued investment in its integrated resort offerings, GENS offers compelling upside potential for investors seeking exposure to Singapore’s tourism and leisure sector.
Ratings and Recommendations
- BUY rating applies to expected returns (excluding dividends) in excess of 10% based on the current price.
- For companies with market capitalization below S\$150 million, a BUY rating indicates expected returns in excess of 30%.
- HOLD rating applies to returns within the +10% to -5% range; SELL rating applies to less than -5% returns.
Genting Singapore offers an attractive risk-reward profile for medium-term investors looking to benefit from the recovery of Singapore’s tourism and entertainment market.
