Genting Singapore eyes stronger H2 despite soft start to 2025
Renovations and temporary closures weigh on first-half performance, say analysts.
Key points:
– GenS expected to post weaker H1 earnings due to hotel and aquarium shutdowns
– The Laurus and Singapore Oceanarium to open by Q3 2025
– Target price revised to S$1.10 (US$0.81) amid positive long-term outlook
Genting Singapore (GenS) is projected to face a subdued performance in the first half of 2025, largely due to temporary disruptions in its operations, but analysts expect a recovery in the latter half of the year, as reported by The Star in Malaysia.
According to Hong Leong Investment Bank Research (HLIB Research), the group’s results for the first half are likely to be dampened by a lower VIP rolling win rate, along with the temporary closure of the Hard Rock Hotel for rebranding. The hotel is set to reopen as The Laurus, a new luxury all-suite concept, in the third quarter.
The S.E.A. Aquarium, another major attraction within Resorts World Sentosa, is also undergoing a 2.5-month closure for upgrade works. These developments, combined with rising operational expenses, are expected to weigh on near-term earnings.
GenS, which is 52.5% owned by Genting Bhd, is betting on a recovery driven by new attractions and tourism momentum. The launch of Minion Land at Universal Studios Singapore, the Mandai Rainforest Wild Asia, Disney’s new cruise ship, and upcoming entertainment events such as a Lady Gaga concert are expected to support visitor numbers. The recent implementation of mutual 30-day visa exemption between China and Singapore is also anticipated to lift inbound tourism.
HLIB Research has maintained a “buy” rating for GenS, revising its target price to S$1.10 from S$1.22, based on projected FY2025 earnings. Maybank Investment Bank Research echoed a similar view, noting that operations are likely to pick up from the third quarter, coinciding with the opening of The Laurus.
Leadership changes are also underway, with CEO Tan Hee Teck set to retire by November. Executive Chairman Tan Sri Lim Kok Thay will assume the role of acting CEO from June.
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