SHARES of Genting Singapore rose as much as 5.6 per cent on Friday (Jan 26), as strong growth in casino revenue by its competitor Marina Bay Sands (MBS) boosted investor sentiments in the gaming sector.

The counter gained as much as S$0.055 to S$1.03, with 54.8 million shares having changed hands as at 11.59 am. The last time it reached this level was last May 19.

This came a day after MBS’ parent company Las Vegas Sands (LVS) reported that the Singapore integrated resort’s casino net revenue grew 84.3 per cent to US$741 million.

CGS-CIMB said on Thursday the solid results of MBS could mean a positive surprise for competitor Genting Singapore’s Q4 performance.

The brokerage expects the mainboard-listed resort operator to report an 8.1 per cent rise in adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) to S$276.8 million in Q4, supported by a rise in international visitor arrivals during the period. It maintained its target price of S$1.30 with an “add” call on the counter.

Nomura’s Global Markets Research is also positive on Genting Singapore following MBS’ top-line growth release, reiterating a “buy” call with a target of S$1.26.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The research house noted that MBS’ slight moderation in volumes, such as the VIP rolling chip volume, is “a marginally negative read-across” to Genting Singapore, which operates the only other casino in the city-state.

“We think the decline in volume reflects the fluctuation in the number of Greater China tourists into Singapore and Singaporeans travelling overseas on holidays.”

Nonetheless, the research house estimates Genting Singapore’s rolling chip volume for FY2023 to grow 51 per cent on the year, as Chinese visitor arrivals rise progressively. “We think Chinese travel will improve from December, based on trends seen in Thailand, and once the mutual visa exemption between Singapore and China travellers is implemented in 2024.”

As at 2.04 pm, Genting Singapore : G13 0% was trading up 4.6 per cent or S$0.045 to S$1.020 with 55.8 million shares transacted. It was the second most heavily traded counter.

Shares of Genting Singapore closed up 3.6 per cent or S$0.035 to S$1.01 on Friday.