Genting Jumps to Six-Month High on Earnings: Singapore MoverJonathan Burgos
Genting Singapore Plc, Southeast Asia’s biggest casino operator, climbed to a six-month high on speculation earnings will rebound in its 2014 financial year amid signs China’s economy is recovering.
Genting jumped 4.7 percent to S$1.45 as of 3:49 p.m. in Singapore, heading for its highest close since June 18. The stock slipped 8.3 percent in 2012, lagging the 20 percent rally in the benchmark Straits Times Index, as earnings at Resorts World Sentosa slumped.
“We like Genting Singapore the most out of laggard stocks in 2012,” Cheryl Lee, a strategist at UBS AG, wrote in a note to clients today. The company “should benefit from demand growth recovery, especially out of China, whilst the receivables situation is now largely under control and relates to legacy issues. A return to high single-digit organic growth is possible in 2014 and 2015.”
Genting may post a net income S$668.7 million last year, according to the average of 21 analyst estimates compiled by Bloomberg. That compares with the record S$1.02 billion profit in 2011.
Resorts World Sentosa, which also includes a Universal Studios theme park, will attract 17 million visitors this year, Chairman Lim Kok Thay said on Dec. 7. That compares with the 16 million visitors projected in 2012.
Genting is expected to post a net income of S$753.5 million this year and S$872 million next year, according to analyst estimates compiled by Bloomberg News.
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