Maybank downgrades RWS to 'hold' as it will take 'more time to recover' post re-opening

After three months of being shut, Resorts World Sentosa reopened on Jul 1 but its operations “will take more time to recover”, says Maybank analyst Yin Shao Yang in a July 23 report. As such, Yin has downgraded Genting Singapore to “hold” with a target price of 80 cents. 

Yin now estimates an FY2020 net loss of $214.6 million ($49.4 million net profit previously). He has also cut his FY2012 profit forecast by 43%, but increases the group’s FY22F net profit by 2%. 

“Singapore’s borders [are] still effectively shut, the gamblers who have been patronising RWS since it reopened are effectively all Singaporean citizens and permanent residents. Coupled with social distancing requirements, we estimate that the current VIP volume and mass market GGR [gross gaming revenue] may come in at only approximately 1/8 and 1/4 of pre-closure levels respectively,” says Yin.