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Why to invest in Genting Singapore Limited ?

There are hundreds of company in Singapore Stock Exchange and it is tough to choose one that can give your investment portfolio a right direction.

So, without further ado let’s know why Multi Management Future Solutions has chosen Genting Singapore Limited to invest in 2019.

GENTING SINGAPORE (SGX: G13)

About Company

It is a Singapore based company listed in FTSE Straits Times Index. With a big market capitalization, it comes under the largest company in Singapore.

Genting Singapore is a principal subsidiary of Genting Berhad. The main sectors in which Genting Singapore and its subsidiaries (the “Group”) are involved are the development and operation of gaming, hospitality, leisure, and entertainment facilities.

Resorts World Sentosa in Singapore, an award-winning destination resort and one of the largest integrated destination resorts in Asia, offering a casino, Universal Studios Singapore theme park, the Marine Life Park (with the world’s largest Oceanarium), MICE facilities, hotels, F&B outlets, and specialty retail outlets.

Latest News

The reinvestment proposal for Resorts World Sentosa (RWS) is one major catalyst for future growth in earning.

The company has granted higher credit limits to its premium and VIP customers. As a result, Genting Singapore is likely to attract and retain a higher volume of premium and VIP customers, leading to an expansion in its gaming market share in Singapore.

Before investing in Singapore, you as a potential investor should be aware of the fundamental details of the stocks.
 

FUNDAMENTAL OVERVIEW OF GENTING SINGAPORE


Following is the key fundamentals data that you should know before investing in Genting Singapore.
 

1 MARKET CAPITALISATION (M) 11,748.75
2 EARNING PER SHARE (SGD) 0.04988
3 DIVIDEND(SGD) 0.034969
4 DIVIDEND YIELD 3.587
5 TRAILING PE 15.92
6 1 YEAR PRICE EARNING 0.855-1.410


Genting Singapore planning its expansion to the Japan market and its reinvestment into RWS, with more news flow expected in FY19. As such, we advise investors to accumulate on share price weakness.

Genting Singapore’s 9M18 revenue of SGD1, 874m (+3% y-o-y) and core net profit of SGD616.1m (+12% y-o-y)

There is one number that has attracted Singapore investor toward Genting Singapore i.e. ROE or return on equity.

ROE represents many data about the company.

Net profit, asset management, the efficiency of turning revenue into profit and how much financial risk it is taking.
 

ROE is calculated as
= Net Profit/ Shareholder’s equity

OR

= Asset Turnover*Net Profit Margin*Leverage Ratio


If ROE of a company is supposed 30% that means it is generating $ 0.30 in profit for every dollar of Shareholder invested in the company.

As of September 2018, the ROE of Genting Singapore is 9.577%. Which makes a positive outlook for the company.

The annual report is yet to announce for 2018 but we have data for the last previous years and of 2018 till September.

 

  2016 2017 2018
Revenue(M)($) 2228.1 2392.6 2454.53
Gross Profit(M)($) 689.5 1074.9 1134.31
Net Profit(M)($) 384.5 685.6 739.2
Net profit Margin 17.3 28.7 30.226
ROE(%) 4.015 8.079 9.577


You can see the ROE and net profit is increased continuously in all the previous years. Its dividend yield of 3.587 % shows that the company is giving good dividend per share to its shareholders.

These are the good signs to invest in any company.

Let’s not forget about technical analysis of the company if you are thinking about investing in it.

 

TECHNICAL OVERVIEW OF GENTING SINGAPORE


On Weekly charts, Genting Singapore Limited stock took support at SGD 0.850. Support came around the lower end of the falling wedge.

Price repeated this trend line multiple times and bounces back from testing it. Now major price junction or say resistance comes around SGD 1.05, above which price can move in a new range of SGD 1.05 to 1.20.

Genting Singapore Technical Analysis

Price action wise and candlestick analysis suggest price hold strong support SGD 0.850.

Bullish engulfing formation also favors our stance and support at this level. Momentum indicator like RSI looks bottoming out at the level of 30 and moves higher and on verge of breaking previous high which is signaling a pickup in momentum.

As per our view buy on dips near SGD 0.850 or on a break of SGD 1.05.

Small candlesticks with narrow real bodies at the level of SGD 1.05 acts as price rejection if stock trade here for a couple of trading days and trade above 1.05 can be positive for the stock.

Major support and resistance levels as below:

 

Symbol S3 S2 S1 Pivot R1 R2 R3
Genting (G13) 0.92 0.94 0.955 0.97 0.985 1 1.02


Genting (G13) 0.920 0.940 0.955 0.970 0.985 1.00 1.02

 

The MMF Solutions Takeaway

With the great success of Resorts World Sentosa (RWS), Genting Singapore is one of the best companies in Singapore. We recommend to give it a try to increase your investment portfolio if you investing in Singapore.

For more stock updates and the latest stock picks to invest in Singapore call us now and subscribe to our three days free trial.

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