Genting Group, a well known Asian multinational firm has many member companies or subsidiaries. Genting Singapore is one of them which also continue its support to the group by serving the leisure and hospitality industry. Founded in 1965, the Genting Group carries extensive experience in creation of integrated resorts and managing them successfully across the various parts of the world. In fact, the group has been voted Asia’s best managed multinational. The integrated resorts by Genting Singapore include excellent gaming facilities and casinos, shopping malls, theme parks, restaurants for fine dining experience and so on. They not only develop these resorts but look after the end to end operations related to it.
The Genting Singapore Stocks have been listed in the Singapore stock exchange since December of 2005. Since then it has maintained its position on the main board of the stock exchange. Getting the company listed on stock exchange is definitely an achievement as the procedures are stringent. Besides, in the last 120 market days’ daily average capitalization needs t be around $40 million. If that is not the case, the company is kept on watch list and then de-listed if there is no improvement within two years. In 2010, Genting Singapore could issue its first cash dividends. The second quarter of 2010, also saw a profit of S$397 million as opposed to the losses in the on-year.
The gambling sector or segment of the Resorts World Sentosa contributes to almost 70-80% of its total revenue. Since the gaming or casino industry is supply oriented, the volatility of Genting Singapore Stocks is obvious. It was also declared in 2010 that Genting Singapore will be able to pay its dividends after 2011. All these were due to the S$4.19 billion of loan taken for the development of their integrated resort Sentosa which also has Universal studios in it.
Despite of the company being unable to pay the dividends, market analysts are suggesting investors to buy Genting Singapore Stocks as there are chances of a rise in the stock value (intrinsic value). Singapore’s hospitality industry is already facing and 80% occupancy and gradually the demand will outrun the supply. This will prove to be good news for the hospitality industry and for the Genting Singapore Stocks in general. Also, the gaming industry has helped a lot in the economic growth of Singapore and so the industry definitely has potential for better gains and better demand.
The Genting Singapore Share Prices may also rise once their expansion plans are successfully executed. They are planning to set up two more hotels namely the Equarius Hotels and Spa Villas. Even their popular ride Battlestar Galactica whose operations were suspended will be restarted in 2011. Their theme park has always run full house with the tickets being sold out during festive season. Thus, the company is sure to do good business which will reflect by the increase in the value of Genting Singapore Shares. Till then investors can keep watching for more news regarding this prospective investment.