Genting Singapore shares open higher following 1QFY2024 earnings that nearly doubled

Genting Singapore shares traded as high as 93 cents, or up 5.08% over last Friday's close

Genting Singapore shares opened higher following last Friday's report that it has nearly doubled its earnings for 1QFY2024.

Genting Singapore shares traded as high as 94 cents, or up 6.21% over last Friday's close, before easing slightly.

For the three months ended March, earnings surged 92% y-o-y to $247.4 million, on the back of a 62% jump in revenue to $784.4 million.

Growth in gaming revenue hit 69%, or $576 million, outpacing the growth in non-gaming revenue, which increased by 44% y-o-y to $208.3 million.

The company says it enjoyed "notable benefits" from the higher visitorship and tourism spending during the Chinese New Year festive season, as well as from the relaxation of visa regulations between China and Singapore that took effect in February 2024.

In his May 10 note, Maybank Securities' Yin Shao Yang says that 1QFY2024 earnings beat his and consensus' expectations.

"As we have posited for more than a year now, Genting Singapore G13 benefitted from the en masse return of Chinese visitors. 

"Adjusted for normal VIP win rate, we expect 2Q24 to be seasonally slower but 3Q24 and 4Q24 to be seasonally stronger," says Yin, who has kept his "buy" call.

However, he has trimmed his earnings projections slightly by 7-8% on higher expenses, leading to a discount cash flow-based target price of $1.10, from $1.16 previously.