KUALA LUMPUR/SINGAPORE – Malaysia and Singapore’s gaming industries are seeing a notable upswing as an increase in Chinese tourists boosts revenues. Relaxing visa requirements and strengthening air connectivity are playing a key role in attracting more tourists from China to the two countries.
Genting Singapore reported strong growth in its mid-year financials, with both sales and adjusted EBITDA increasing significantly. This improvement is mainly due to the return of Chinese tourists, a trend expected to continue into FY24 as flight options from China expand.
Similarly, Malaysia’s gaming sector, represented by Genting Malaysia, is also experiencing positive changes. Maybank expects Genting Malaysia’s earnings to grow significantly in FY24. This forecast is based on the expectation that tourism will continue to recover and that visitor numbers are likely to return to pre-pandemic levels.
The optimism surrounding the gaming sector was further reinforced by the strong net profit recorded by Genting Malaysia in Q3FY23, marking a reversal from the previous year’s loss. This turnaround in financial conditions demonstrates the resilience of the sector and the potential for sustained growth as tourism increases.
Investment Pro Insights
As Malaysia and Singapore’s gaming industries flourish, especially with the influx of Chinese tourists, it is worth keeping an eye on the performance of the major players in the sector. For example, WP Carey Inc. (NYSE:), although not directly mentioned in the article, provides a relevant comparison as a company with significant real estate assets, including a leisure sector that includes gaming facilities.
InvestingPro’s data highlights WPC’s solid financial health, with a market capitalization of $14.18 Billion and a P/E ratio of 17.84. The company’s revenue has grown an impressive 22.15% over the past 12 months as of Q3 2023, indicating strong operating performance. Moreover, its gross profit margin for the same period was an impressive 92.39%, confirming the company’s efficiency and profitability.
WPC’s InvestingPro Tips highlights the company’s strong earnings quality, with free cash flow outpacing net income and consistently increasing earnings per share. These factors are particularly important for investors considering the gaming sector’s potential for sustained growth, as demonstrated by positive trends in Malaysia and Singapore. Additionally, WPC has maintained its dividend payments for his 26th consecutive year, which should be of interest to income-oriented investors.
For more information, over 10 additional InvestingPro tips about WPC are available at https://www.investing.com/pro/WPC. InvestingPro subscriptions are currently on special New Year sale with up to 50% off, so it’s a great time to access in-depth analysis and data.Furthermore, if you use a coupon code sfy24 Get an extra 15% off your 2-year InvestingPro+ subscription and enhance your valuable investment research.
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