Genting Singapore: The Top Gainer Among SGX Listed Stocks on Friday

Genting Singapore (G13.SI) shareholders had a reason to celebrate on Friday, as the company's stock emerged as the top gainer among SGX-listed stocks. The stock price surged, driven by a combination of strong earnings results and an ambitious expansion project. Let's dive into the details and explore what makes Genting Singapore an attractive investment opportunity.

Genting Singapore reported earnings results for the half year ended June 30, 2024, which showed impressive growth compared to the previous year. Sales increased by 25.5% to SGD 1,355.78 million, while net income grew by 28.7% to SGD 356.91 million. Basic earnings per share from continuing operations rose by 29.3% to SGD 0.0296, and diluted earnings per share from continuing operations increased by the same percentage to SGD 0.0295. These strong earnings results demonstrated the company's financial health and growth potential, contributing to the stock price increase.

In addition to the strong earnings performance, Genting Singapore announced a major expansion project for its Resorts World Sentosa (RWS) property. The SG$6.8 billion ($5 billion) expansion, dubbed RWS 2.0, aims to introduce around 700 new hotel rooms and establish a monumental gateway connecting RWS with Singapore's upcoming Greater Southern Waterfront precinct. The project also includes enhancements such as a new Minion Land at Universal Studios Singapore and a significant expansion of the S.E.A. Aquarium, which will be rebranded as the Singapore Oceanarium and triple in size. The popular Forum area is also set to undergo a transformation, with these and other new features slated for a soft opening in early 2025. This ambitious project is fully funded through Genting's internal resources and is expected to be rolled out progressively over the next eight years.

Genting Singapore's strong financial position and dividend yield make it an attractive investment opportunity in the Consumer Discretionary sector. The company's net cash position of SGD 3.67 billion, or SGD 0.30 per share, and dividend yield of 5.48% indicate a solid financial foundation and a commitment to returning value to shareholders. Additionally, the company's improving operational efficiency, as evidenced by its growing earnings and cash flow, further enhances its investment appeal.