Will Genting Singapore Be Affected By The New Integrated Resorts’ Expansion?

Will Genting Singapore Be Affected By The New Integrated Resorts’ Expansion?

In a joint statement on Wednesday evening (April 3), the operators of the two integrated resorts (IR) will pump in $9 billion to build world-class attractions, which will include a fourth tower to the iconic Marina Bay Sands (MBS) development, three new hotels, a 15,000-seat entertainment arena and extensions to Universal Studios Singapore (USS).

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The Ministry of Trade and Industry said that the $9 billion investment is almost two-thirds of the IRs’ initial investment of about $15 billion in 2006.

According to the Straits Times, MBS and Resorts World Sentosa (RWS) will be allowed to expand their casino operations, with their exclusive rights to run a casino here extended until the end of 2030.

However, their gambling revenue will be further taxed by the Government. This means that casino levies on Singapore residents will be increased. The daily levy will go up from $100 to $150 from Thursday (April 4), while the annual levy is being increased from $2,000 to $3,000.

Genting Singapore, which has its key business vested in RWS, has inadvertently been drawn into the limelight.

Genting Singapore has announced the plans to invest $4.5 billion to renew and refresh Resorts World Sentosa (RWS).

In view of this investment, the government has agreed to extend the exclusivity period for the two casinos at RWS and Marina Bay Sands (MBS) to end-2030. MBS, on the other hand, also committed to a $4.5 billion investment to expand its property.

According to the Edge Singapore, authorities add that no other casinos will be introduced during this period.

Analysts say the development is positive in the long-term, even as some potential short-term headwinds have emerged. Genting Singapore’s share price tanked close to 10% on this news.

However, what’s the outlook of Genting Singapore (SGX:G13) as a company, in light of such a ‘progressive’ plan?

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The following is an excerpt of the Moat Scorecard System, as listed on our store here:

According to one of our veteran community members and bloggers TUBInvesting, Genting Sing has been involved in gaming and integrated resort development. Its footprint can be found in Australia, the Americas, Malaysia, the Philippines and the United Kingdom. They also own Resorts World Sentosa, a S$6.6 billion integrated resort development in Singapore’s Sentosa island. Resorts World Sentosa has progressively opened its four hotels, casino, Universal Studios Singapore, celebrity chef restaurants, resident theatre show called Voyage de la Vie, free public attractions as well as the Maritime Experential Museum and Aquarium.

Basically, he states numerous good points of G13 – Good continuous free cash-flow, good balance sheet, and a future catalyst in Japan bid.

Last month, he devised a scorecard for the financial health, growth aspects and moat standings for Genting Singapore.

This scorecard is not only a comprehensive way to quickly understand the financial standings of a listed company, but it also helps to identify the business moats and competitive advantage that it possesses, in relation to its competitors.

This Moat Scorecard System is a proprietary system derived by prominent financial bloggers, TUBInvesting and Simpleinvestorsg. They have more close to 700 scorecards for SGX-listed companies!

There’s also 5 key competitors in the APAC region for Genting Singapore, mentioned in the full premium analysis portion of this Moat Scorecard System.

Do check them out here: https://www.investingnote.com/store/products/moat-scorecard

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