Hot stock: Genting Singapore shares jump 8% in early trading after posting 46% rise in Q3 profits

SHARES in mainboard-listed Genting Singapore have advanced by 7.9 per cent during Friday's early session, with the casino operator's stock advancing SS$0.07 to S$0.96 as at 10.27am.

It was the Singapore bourse's most heavily traded stock with some 51.6 million shares changing hands.

The gain comes on the back of positive third-quarter earnings posted on Thursday after the market closed.

Genting Singapore has posted a net profit of S$210.4 million for the third quarter, up 46 per cent from the same period a year earlier, as Resorts World Sentosa attractions pulled in the crowds.

Maybank Kim Eng analyst Yin Shao Yang upgraded his call on Genting Singapore to "buy" from "hold", and raised its target price to S$1.29.

The brokerage said in a report: "Since reporting Q2 results, Genting Singapore's share price has plunged 28 per cent. Q3 results not only pleasantly surprised us, but Genting Singapore is cautiously optimistic on its outlook."

Noting that the stock was presently undervalued, RHB Research Institute analysts have maintained both their "buy" call on Genting Singapore and its target price of S$1.42.

They said: "We still like Genting Singapore for its continued focus on growing its VIP segment, and its potential expansion to the Japan market."

Meanwhile CGS-CIMB analysts Cezzane See and Lim Siew Khee were more cautious. Even though Genting Singapore's management has said that it is in a comfortable position to extend credit to attract VIP customers, it remains very aware of the near-term risks that US-China trade relations could pose on VIP flows, the analysts said.

CGS-CIMB has maintained its "buy" call but lowered its target price to S$1.28 from S$1.44.