Latest news with #GentingSingapore
Straits Times
6 days ago
- Business
- Straits Times
Singapore stocks rise after US court blocks Trump's tariffs; STI up 0.1%
Investors here were not overly fired up by the ruling but still nudged the benchmark Straits Times Index ahead 0.1 per cent. ST PHOTO: BRIAN TEO SINGAPORE – The move by a US court to block President Donald Trump's 'Liberation Day' tariffs gave regional shares a welcome lift on May 29. Investors here were not overly fired up by the ruling but still nudged the benchmark Straits Times Index (STI) ahead 0.1 per cent or 4.92 points to 3,916.84 but gainers thumped losers 309 to 170 on solid trade of 1.2 billion securities worth $1.3 billion. The STI's top gainer was the Singapore Exchange, which rose 2.3 per cent to $14.30, while casino operator Genting Singapore was the biggest decliner, down 1.4 per cent to 69 cents. It was also the most active, with 64.3 million units traded. The court ruling was released too late for Wall Street and the three major indexes slipped back a day after big gains in the previous session. Traders there were rattled by minutes from the Federal Reserve's last rate meeting indicating concerns that the hefty tariff hikes would elevate prices and risk stoking higher inflation. The Dow Industrials and S&P 500 both lost 0.6 per cent while the Nasdaq fell 0.5 per cent. Markets across the region had better timing and rose on news that the trade court ruled that the President Trump overstepped his authority by imposing across-the-board duties. The ruling also casts doubts on recent agreements with Britain and China. South Korea's Kospi and Japan's Nikkei 225 were both up 1.9 per cent and Australia's ASX 200 gained 0.2 per cent. Mr David Chao, global market strategist for Asia Pacific at investment management company Invesco, said the US court ruling on tariffs will result in a delay in trade deal announcements as countries adopt a wait-and-see approach. Against a backdrop punctuated by escalating and de-escalating tariff measures, non-US assets are 'increasingly attractive and poised for continued out-performance', added Mr Chao, noting: 'We view this as an opportunity for investors to diversify their portfolios across regions and asset classes and reduce concentrations.' THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
26-05-2025
- Business
- Business Times
Singapore shares fall amid mixed regional showing; STI down 0.2%
[SINGAPORE] Shares on the Singapore bourse ended lower on Monday (May 26), even as regional markets ended mixed. The benchmark Straits Times Index (STI) fell 0.2 per cent or 6.82 points to 3,875.60. Across the broader market, decliners edged out gainers 268 to 220, after 894.4 million securities worth S$751.7 million were traded. The top gainer on the index was in-flight caterer Sats , which rose 2.3 per cent or S$0.07 to S$3.05. The biggest blue-chip decliner was offshore and marine specialist Seatrium . The counter slid 1.4 per cent or S$0.03 to S$2.04. Genting Singapore was the most actively traded counter by volume, with 30.3 million shares worth S$21.3 million traded. The counter fell 1.4 per cent or S$0.01 to S$0.70. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Markets across the region ended mixed. Hong Kong's Hang Seng Index fell 1.4 per cent while Australia's ASX 200 ended flat. South Korea's Kospi and Japan's Nikkei 225 gained 2 per cent and 1 per cent, respectively. In view of the mixed Asian markets, Paul Chew, head of research at Phillip Securities, said the US administration's 'constant flip-flops' in tariffs and policies will keep any business exposed to America hesitant to invest in inventories or capacity. 'The ever-present threat of tariffs only raises the risk premium of any manufacturer exposed to the US markets, especially semiconductor companies,' said Chew.
Business Times
16-05-2025
- Business
- Business Times
Genting Singapore shares are undervalued despite drop in earnings, Morningstar says
[SINGAPORE] Genting Singapore 's shares are undervalued despite its recent weak earnings, says Morningstar. Morningstar's senior equity analyst, Jennifer Song, has a fair value estimate of S$0.96 for Genting Singapore shares. The stock last closed at S$0.715 on Thursday (May 15). As at 10.04 am on Friday, it was up 0.7 per cent or S$0.005 at S$0.72. Genting Singapore's results were largely in line with analysts and market expectations, Song said in a Morningstar report on Thursday. Genting Singapore reported a sharp year-on-year revenue decline of 20 per cent to S$626.2 million from S$784.4 million in the year-earlier period. Net profit tumbled 41 per cent to S$145 million from S$247.4 million the year before. 'However, the results reflect a sharp year-on-year decline in revenue and net profit due to a high base a year ago and ongoing renovation disruptions from its RWS 2.0 project, which will continue to weigh on second-quarter performance,' Song wrote. Genting on Wednesday attributed the weaker performance to lower VIP rolling win rate and temporary closure of Hard Rock Hotel for renovation and rebranding works, which led to a reduction in available room inventory. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Additionally, the decline in financials was weaker compared with the previous year where Singapore had more visitors during the Chinese New Year festive season along with the relaxation of visa regulations between China and Singapore in February 2024. However, Morningstar's Song expects earnings growth to pick up from the second half of 2025, on the back of the commencement and ramp-up of new projects and attractions. This includes the launch of a superluxury all-suite hotel, the Singapore Oceanarium, and expanded retail and dining options. 'Although Genting has been losing gross gaming revenue market share to peer Marina Bay Sands in recent years, we anticipate the phased launch of its RWS 2.0 attractions to accelerate revenue growth and expand margins from the second half of 2025,' said Song. In a bourse filing on Wednesday, Genting Singapore also announced that chief executive officer Tan Hee Teck will be stepping down from his role on May 31. Shares of Genting-linked companies in Malaysia fell on Thursday as investors digested the surprise CEO exit at Genting Singapore and fresh concerns over corporate governance.
Yahoo
16-05-2025
- Business
- Yahoo
Estimating The Fair Value Of Genting Singapore Limited (SGX:G13)
Genting Singapore's estimated fair value is S$0.65 based on 2 Stage Free Cash Flow to Equity Current share price of S$0.71 suggests Genting Singapore is potentially trading close to its fair value The S$0.95 analyst price target for G13 is 46% more than our estimate of fair value Today we will run through one way of estimating the intrinsic value of Genting Singapore Limited (SGX:G13) by projecting its future cash flows and then discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Our free stock report includes 1 warning sign investors should be aware of before investing in Genting Singapore. Read for free now. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (SGD, Millions) S$289.0m S$408.5m S$424.5m S$419.5m S$418.9m S$421.3m S$425.9m S$432.0m S$439.3m S$447.5m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ -1.18% Est @ -0.14% Est @ 0.58% Est @ 1.09% Est @ 1.44% Est @ 1.69% Est @ 1.86% Present Value (SGD, Millions) Discounted @ 6.9% S$270 S$357 S$347 S$321 S$299 S$282 S$266 S$253 S$240 S$229 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = S$2.9b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = S$448m× (1 + 2.3%) ÷ (6.9%– 2.3%) = S$9.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= S$9.8b÷ ( 1 + 6.9%)10= S$5.0b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is S$7.9b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of S$0.7, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Genting Singapore as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 1.079. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Genting Singapore Strength Currently debt free. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Hospitality market. Opportunity Annual revenue is forecast to grow faster than the Singaporean market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Dividends are not covered by cash flow. Annual earnings are forecast to grow slower than the Singaporean market. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Genting Singapore, there are three essential aspects you should further research: Risks: As an example, we've found 1 warning sign for Genting Singapore that you need to consider before investing here. Future Earnings: How does G13's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SGX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
15-05-2025
- Business
- Business Times
Singapore shares gain as investors take stock of earnings reports; STI increases 0.5%
[SINGAPORE] Local stocks climbed on Thursday (May 15), as investors assessed financial results from listed companies here. The benchmark Straits Times Index added 0.5 per cent or 20.89 points to 3,891.94. Across the broader market, losers beat gainers 283 to 238, as 1.4 billion securities worth S$1.5 billion changed hands. The STI's largest gainer was ST Engineering , which increased 1.9 per cent or S$0.14 to S$7.33. The defence and technology group continued to recoup losses from Tuesday, when it finished at the bottom of the table. The biggest loser was Genting Singapore , which fell 2.7 per cent or S$0.02 to S$0.715. This comes after the integrated resort operator announced that its chief executive Tan Hee Teck will be retiring from the position on May 31. He will also be stepping down as chair and chief executive of Resorts World Sentosa. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The group also reported that net profit after taxation tumbled 41 per cent to S$145 million in the first quarter ended Mar 31, from S$247.4 million in the corresponding year-ago period. Outside the STI, private cord-blood bank Cordlife Group jumped 54.8 per cent or S$0.085 to S$0.24. This comes after Thai-listed Medeze Group launched a partial offer for a 10 per cent stake in Cordlife at an offer price of S$0.25 a share. The three local banks all gained ground. DBS climbed 1.9 per cent or S$0.85 to S$45.10, OCBC increased 0.4 per cent or S$0.06 to S$16.24 and UOB ascended 0.6 per cent or S$0.22 to S$35.49. Regional indices were in the red. Hong Kong's Hang Seng Index declined 0.8 per cent, while South Korea's Kospi fell 0.7 per cent. Japan's Nikkei 225 lost 1 per cent and the Bursa Malaysia Kuala Lumpur Composite Index retreated 0.7 per cent.
