Brokers' take

Genting Singapore | Buy Target price: S$1.53 Nov 7 close: S$1.27 Nomura, Nov 7

WE reiterate our 'buy' rating on Genting Singapore as we believe the stock should maintain its recent run (up 36 per cent year-to-date), backed by another strong Q3-17 adjusted Ebitda of S$320 million should lead to further street upgrades, with adjusted Ebitda margin of 51 per cent versus 35 per cent for FY16.

We were encouraged by gaming volumes increasing (VIP roll +26 per cent year-on-year, slot handle +8 per cent year-on-year), continued strength in non-gaming offerings with revenue +16 per cent quarter-on-quarter. At the same time, management kept a tight lid on trade receivables and impairment losses (both the lowest since inception). Barring hold-related volatility, we think Genting can now achieve S$1.15 billion annualised adjusted Ebitda (versus our previous estimate of S$1 billion).