By Ying Xian Wong
Genting Singapore shares rose early Friday after its first-half earnings more than tripled.
Shares of the casino operator jumped 4.3% to 0.96 Singapore dollars, bringing its 12-month gains to 16%.
Genting Singapore late Thursday reported first-half net profit of S$276.7 million (US$205.0 million), up from S$84.4 million a year earlier, driven by a recovery in foreign tourist arrivals.
Revenue rose 63% to S$1.08 billion and operating profit surged to S$350.8 million from S$110.2 million a year earlier.
Hong Leong Investment Bank upgraded Genting Singapore to buy from hold and raised the target price to S$1.24 from S$1.09, citing a favorable risk-reward profile after its recent share-price weakness.
Resorts World Sentosa is likely to benefit from the return of foreign tourists, aside from the spillover effects of notable music concerts set to take place in Singapore in late 2023 and 2024, Hong Leong analyst Brian Chin Haoyan said in a note.
Citi increased the target price on Genting Singapore to S$1.26 from S$1.23 and kept its buy rating, saying the stock “appears attractive.” It also raised its 2023 to 2025 earnings forecasts for the company by 3%-8% to account for the latest earnings performance and operating trends.
Genting Singapore declared an interim dividend of S$0.015, higher than S$0.01 a year ago. Citi said the final dividend may rise to S$0.025 from S$0.02 in 2022.
Write to Ying Xian Wong at [email protected]
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