Hong Leong Investment Bank Bhd (HLIB) has maintained a BUY call on Genting Singapore with an unchanged target price of S$GD1.07, implying a 35.4% capital upside from the current price of S$0.79 and an expected total return of 41.0% including a projected 5.6% dividend yield.
The research house said the valuation remains undemanding despite a softer FY25 performance, and reiterated confidence in earnings recovery heading into 2026.
Genting Singapore reported FY25 core net profit of S$587.1 million, down 23.8% year-on-year, coming in within HLIB’s forecast at 99% but exceeding consensus estimates at 114%.
The earnings figure was derived after adding back exceptional items amounting to S$196.7 million, largely from net impairment of trade receivables of S$165.1 million. A final dividend of 2.0 cents was proposed, bringing the full-year payout to 4.0 cents, unchanged from FY24.
Revenue for the year declined 3.1%, weighed by a 5.8% drop in gaming revenue due to lower win rates, although non-gaming revenue rose 2.6%, supported by firmer tourist arrivals in Singapore, which increased 2.3% in 2025.
Adjusted EBITDA fell 15.0% amid weaker operating leverage and higher ramp-up costs tied to new attractions and modernisation initiatives.
Looking ahead, HLIB expects Genting Singapore to deliver an 8.4% year-on-year earnings improvement in 2026, underpinned by the progressive ramp-up of new attractions launched in 2025, including Minion Land, the Singapore Oceanarium and The Laurus hotel.
With Singapore’s international visitor arrivals projected to rise to 17.0 to 18.0 million in 2026, alongside higher tourism receipts, HLIB believes the group is well positioned to benefit from stronger gaming and non-gaming contributions.
