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 Will  GENTING 3182 GENTING BHD  mirror Genting Singapore impressive share price uptrend?


Genting Singapore Ltd has been enjoying a good run in its share price in the past year, surging some 44% to close at S$1.18 on April 5.

The surge spell good news to its parent company Genting Bhd, which holds 53% in the SIngapore-listed casino operator.

In the past year, Genting Bhd only rose marginally, 1% to close at RM4.68 on April 5.

But expectations are for Genting Bhd share price to follow the rally to catch up at least 50% of the market cap increase from Genting Singapore.

Based on that, Genting Bhd should go up by at least 50 sen to above RM5 level.

This is because, Genting Singapore share price has gone up from S$1 level to now S$1.18, adding RM3.83 billion of market cap to Genting Bhd's stakes or RM1 per share.

Touching beyond RM5 level is not out of the question as Genting Bhd reached a 52-week high of RM5.34 in June last year.

Optimism on casino counters like Genting Bhd and Genting Singapore is further elevated on talks of takeover interest of the Singapore casino unit as tourists return to the Asian travel destinations.

According to reports, US rival MGM Resorts International has approached the Genting Singapore's controlling shareholder, the billionaire Lim family, to express its interest in a deal.

The report said other suitors have also entered into preliminary stages of studying Genting Singapore.

When such news broke, the SGX-listed unit surged as much as 9.3% prompting the bourse to issue a query to the company on the "unusual price movements".

Question is whether Genting Bhd share price will follow suit given its firm control of the Singapore casino unit.

Whether or not Gentig Bhd will still catch-up with its Singapore counterpart remains unseen.

Nevertheless, Kenanga Research is positive on the Genting Berhad.

The research house believes the gaming sector will benefit as travel nomalises post Covid-19 pandemic

As such, it maintained an overweight call on the gaming sector

Kenanga Research shares that Tourism Malaysia projects a 60% jump to 16.1 million tourist arrivals in Malaysia in 2023,

Meanwhile, the Singapore Tourism Board expects a big jump in visitor arrivals to the island republic of 12 million to 14 million this year over 4.7 million recorded last year.

Kenanga Research expects the return of international tourists, especially those from China, benefitting casino operators such as Genting Malaysia Bhd. and Genting Singapore and Genting Bhd

Betting on Malahysian Genting counters may prove to be worthwhile give its potential upside and boosted by the recovery play.



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