Genting Singapore shares fall after Q1 earnings drop
Genting yesterday posted a 33 per cent fall in first quarter net profit to S$205.5 million.SINGAPORE, May 11 — Shares of casino operator Genting Singapore PLC fell as much 3.3 per cent to a seven-week low after it posted a decline in quarterly earnings and several brokerages lowered their target prices.
Genting yesterday posted a 33 per cent fall in first quarter net profit to S$205.5 million (RM504.3 million), and said it was looking for new projects to expand its business.
Genting shares were 3 per cent lower at S$1.620 with over 14.1 million shares traded around 0125 GMT (0825 Malaysian time).
CLSA cut its target price for Genting to S$2.33 from S$2.39, and kept its buy rating, as it expects the completion of the west zone in Genting’s Singapore casino-resort, Resorts World Sentosa (RWS), to be delayed.
The broker is bullish on possible investments in Japan by Genting or mergers and acquisitions in Macau, it said in a report.
CIMB Research, which maintained its outperform rating, trimmed Genting’s target price to S$1.95 from S$2.00, citing lower-than-expected operating margins and a higher tax rate.
However, Genting will benefit in the coming quarters from the increase in hotel rooms and the rollout of RWS’ west zone, CIMB said. — Reuters
