Genting will remain affected by China’s zero-Covid policy
Analysts at Nomura Research predict China’s zero-Covid policy may continue to affect Genting Singapore’s revenue in 2022.
Singapore.- A day after Genting Singapore shared its financial results for the third quarter of the year, analysts at Nomura Research have predicted the company will remain affected by China’s zero-Covid policy the next year even if Singapore reopens for international travel.
The company has a positive attitude on the operator of Resorts World Sentosa but believes it could be some time before Chinese citizens can travel again. According to data from the Singapore Tourism Board, China was the largest source country for international tourism in Singapore in 2019, with visitors spending $4.1bn.
Due to continued capacity constraints, Nomura Securities has lowered its forecast for Genting Singapore adjusted EBITDA for this year from SG$533m to SG$490m. Analysts have also lowered their forecast from SG$687m to SG$644m for 2022 and from SG$931m to SG$901m for 2023.
According to Nomura, Genting Singapore’s earnings for the second half will be similar to those registered during the first quarter of the year or even below that level. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first half was SGD276.1m, compared to SGD66.7m in the first half of 2020.
