In key news for Singapore stocks, Genting Singapore (SG:G13) stock slid due to weak fourth-quarter performance. The company’s adjusted EBITDA for the fourth quarter dropped 34% year-over-year to S$228 million, largely due to the bad debt provision of S$92 million recorded in the second half.
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The shares traded down by almost 9% at the time of writing, marking the most substantial decline since March 2020. However, analysts remain bullish on the long-term prospects, highlighting the full-year number growth and the continued revival of travel demand.
Genting Singapore is an investment holding company with a significant presence in leisure and hospitality projects across Asia.
Full-Year Numbers Shine
For the full year 2023, the company disclosed a net income of S$611.6 million, reflecting an impressive 80% surge compared to the previous year. The gaming revenue from its integrated resort at Sentosa soared by 34% to S$1.65 billion. The adjusted EBITDA amounted to S$1.03 billion, slightly below the estimated S$1.06 billion.
The company also proposed a final dividend of S$0.02 per share, similar to the previous year.
Analysts’ Reactions
After the results announcement, analysts expressed their bullish view on the stock. Analyst Ds Kim from J.P. Morgan stated that despite the “knee-jerk reaction,” the stock remains attractive at this good price. Kim gave a Buy rating on the stock.
Likewise, Citigroup analyst George Choi mentioned the bad debt provision as a “negative surprise.” However, he believes the ongoing resurgence in regional travel and gaming demand will be favorable for the company. Yesterday, Choi confirmed his Buy rating on the stock, predicting 12.6% growth.
Is Genting Singapore a Good Buy?
On TipRanks, G13 stock has received a Strong Buy rating, backed by unanimous Buy recommendations from four analysts. The Genting share price target is S$1.21, which is 17.4% higher than the current trading level.
