Hong Leong Investment Bank Bhd (HLIB) has maintained its BUY call on Genting Singapore with a lower target price of S$1.07 from S$1.18 previously, citing a softer performance in the gaming segment and weaker group EBITDA margin. The research house projected a total return of 52.2% with a dividend yield of 5.6%.
According to HLIB, Genting Singapore’s net profit for the first nine months of 2025 came in at S$329.3 million, down 24.5% year-on-year and below both its and consensus forecasts. The shortfall was largely attributed to weaker-than-expected revenue from the gaming segment, which saw softer VIP rolling volume and win rates, alongside unfavourable operating leverage.
For the third quarter, Genting Singapore reported a net profit of S$94.6 million, up 5.3% quarter-on-quarter and 19.1% year-on-year. Revenue rose 10.4%, with non-gaming income jumping 32.8%, supported by stronger tourist arrivals and the ramp-up of new attractions such as Illumination’s Minion Land and the Singapore Oceanarium. The gaming segment, however, remained flat as VIP volumes continued to soften despite a 12.9% increase in international visitors.
HLIB noted that adjusted EBITDA rose 18.5% quarter-on-quarter, driven by stronger non-gaming performance, while year-on-year comparisons showed top-line growth of 15.6% and EBITDA improvement of 35.9%. Nonetheless, on a year-to-date basis, overall revenue fell 2.8% due to a slower first quarter, which was affected by lower gaming volumes and the temporary closure of Hard Rock Hotel for renovation.
Looking ahead, the house expects Genting Singapore to deliver a stronger fourth quarter as new attractions continue to gain traction and tourism numbers improve. The Singapore Tourism Board projects international visitor arrivals to reach between 17 million and 18.5 million in 2025, aided by improved flight connectivity, upcoming events, and the 30-day mutual visa exemption between Singapore and China.
Genting Singapore remains focused on its Resorts World Sentosa 2.0 expansion to solidify its position as the region’s leading integrated resort. HLIB Research expects the upcoming additions, including The Laurus hotel and expanded entertainment offerings, to support long-term growth despite near-term headwinds in the gaming segment.
While earnings forecasts have been revised down by up to 16.6% for FY25–27, the research house highlighted Genting Singapore’s attractive dividend yield and strong fundamentals, maintaining its positive stance on the counter.
