UOB Kay Hian Research analysts have named Genting Singapore as their top sector pick for 2023.<\/p>\n\n\n\n\n\n\n\n
Singapore.- Analysts Vincent Khoo, Jack Goh and Ng Jo Yee<\/strong>, from UOB Kay Hian Research<\/strong>, released a report where they are maintaining \u201coverweight\u201d on the Singapore and Malaysian gaming sectors and \u201cmarket weight\u201d on Macau gaming sectors, with Genting Singapore<\/strong> their top sector pick for its 2023 earnings recovery and capital management upside.<\/p>\n\n\n\n Their new target price of $1.15 (from $1.08 previously) for Genting Singapore is conservatively based on a 9.3x 2023 enterprise value-to-ebitda ratio (EV\/ebitda), 0.5 standard deviations (s.d.) below the mean. <\/p>\n\n\n\n \u201cFollowing the past months\u2019 stock rallies, the EV\/ebitda valuations of the Macau gaming stocks under our coverage have rebounded significantly to above their pre-pandemic levels, as investors partly price in further GGR recoveries in 2024,\u201d they said according to the information released by The Edge Singapore.<\/p>\n\n\n\n UOB Kay Hian analysts said that Genting\u2019s Malaysian list, Genting Malaysia<\/strong> and Genting Berhad<\/strong>, are \u201cconspicuous laggards\u201d, held back by Genting Malaysia\u2019s ill-timed related-party transaction and the lack of foreign interest in Malaysian equities.<\/p>\n\n\n\n \u201cWe prefer Singapore gaming to its Malaysian counterpart, partly because Genting Singapore has the highest reliance on mainland China patronage that accounted for an estimated 20 per cent of its pre-pandemic revenue,\u201d they added.<\/p>\n\n\n\n In the note, analysts also said: \u201cWe believe that the market should sustain its positive sentiments towards Singapore\u2019s gaming sector which includes Genting Singapore in 2023, anchored on the sector\u2019s meaningful core profitability recovery which promises defensiveness amid current market volatility.\u201d<\/p>\n\n\n\n See also: <\/strong>Genting Singapore posts net pro<\/a>fit of U<\/a>S$96.8m for Q3<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" UOB Kay Hian Research analysts have named Genting Singapore as their top sector pick for 2023.<\/p>\n","protected":false},"author":226,"featured_media":17661,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"UOB Kay Hian Research maintains an \"overweight\" rating on the Singaporean and Malaysian gaming sectors, designating Genting Singapore as its top sector pick for 2023 due to anticipated earnings recovery and capital management upside. Analysts note significant valuation rebounds for Macau gaming stocks, while Genting Malaysia lags due to a related-party transaction and limited foreign investment interest.","focusai_entities":"UOB Kay Hian Research, Genting Singapore, Vincent Khoo, Jack Goh, Ng Jo Yee, The Edge Singapore, Genting Malaysia, Genting Berhad","focusai_location":"Singapore, Malaysia, Macau, China","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.85), investor_analyst (1.0), supplier_vendor (0.75), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Genting Singapore Valuation","query":"What specific capital management initiatives are expected to drive Genting Singapore's valuation upside beyond the 9.3x 2023 EV\/EBITDA multiple?"},{"label":"Macau GGR Recovery","query":"How do the UOB Kay Hian analysts project the GGR recovery trajectory for Macau gaming stocks in 2024, and what are the underlying assumptions regarding mainland China visitation?"}],"footnotes":""},"categories":[157,16333],"tags":[23687],"class_list":["post-777001449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news","tag-genting-singapore"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/226"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777001449"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001449\/revisions"}],"predecessor-version":[{"id":777001455,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001449\/revisions\/777001455"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17661"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777001449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777001449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777001449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}