KUALA LUMPUR (Oct 12): Maybank Investment Bank Research (Maybank IB) has maintained its “buy” call on Genting Singapore (GenS) at S$0.84 (RM2.91), with an unchanged target price of S$1.12, and said it is business as usual for the casino operator’s VIP market, and the mass market continues to grow.

In a note on Wednesday, the research house said a high-profile money-laundering case, which has seen Singapore authorities seize more than S$2.8 billion (US$2.1 billion or RM9.71 billion) in cash, crypto and other assets, has had no tangible impact on the state’s casinos, including GenS.

Maybank IB said GenS did not notice any discernible decline in its engagement with VIPs, whether via its private jet programme that was introduced earlier this year, or "meet-and-greet" celebrity events.

“Even without meaningful Chinese visitations, Resorts World Sentosa’s first-half (1H2023) mass-market gross gaming revenue (GGR) hit about 100% of 1H2019 levels.

“We understand that slot machine GGR (40% to 50% of mass-market GGR) is still trending higher on new migrants to Singapore, while mass-table GGR (50% to 60% of mass-market GGR) is seeing a lot more meaningful Chinese play relative to 1H2023,” it said.

Maybank IB said it expects mass-market GGR to continue growing, as more Chinese tourists return to the city state.

Based on Maybank IB's estimates, GenS is trading at an estimated ex-cash price-earnings ratio of only 10 times for the financial year ending Dec 31, 2024 (with full-year impact from the return of Chinese tourists).