Selective SG Stocks Analysis 

Genting Singapore reported on Thursday (Nov 10) a more than 100 per cent increase in net profit for its third quarter, on the back of stronger gaming and non-gaming revenue. Net profit for the three months ended Sep 30, 2022, rose to S$135.8 million from S$60.7 million in the same period a year ago, the operator of Resorts World Sentosa (RWS) said in a business update filed to the Singapore Exchange. The Q3 net profit was also significantly higher than the S$44.1 million net profit posted in the second quarter of FY2022. Genting Singapore’s stronger profits come on the back of improved revenue, as recovery from the impact of Covid-19 restrictions continued. Revenue for the group more than doubled on-year to S$519.7 million in Q3 FY2022. It was also 49 per cent higher than the S$348.6 million posted in Q2. Gaming revenue rose 96 per cent on-year to S$382 million, while non-gaming revenue climbed to S$137.3 million from S$56.2 million in the year-ago period. “The overall improvement in RWS’ operating performance reflects the ongoing recovery of regional travel markets, but such recovery has yet to return to the pre-pandemic levels,” Genting Singapore said in a statement. The group attributed the rebound in gaming revenue to ”more affluent and premium customers that are staying slightly longer”. Genting Singapore said that it remains “confident and excited” about its growth opportunities in Singapore. It noted that its expansion projects for RWS are “proceeding expeditiously as planned”, and the group is also investing in assets to attract the affluent market. “While labour shortages and cost pressures present significant challenges, we continue to enhance our product offerings and hire, train, and re-skill our workforce,” the group said. It added that it is also strengthening its leadership and management team for the next stage of growth.

Philippine liquor giant Emperador posted 11 per cent year-on-year revenue growth to 42.6 billion pesos (about S$1 billion) for the first nine months of 2022, driven by growth across the group’s whisky and brandy segments. On Thursday (Nov 10), the dual-listed company said its whisky segment revenue grew 16 per cent over the nine-month period mainly due to higher sales of single malts across almost all regions around the world, and the return of travel retail. Revenue from the brandy segment grew 8 per cent, sustaining year-on-year topline growth in its key markets in the Philippines, Spain, Mexico and North America. Despite the higher group revenue, net profit was marginally lower at 7.2 billion pesos compared with the previous year’s 9M earnings of 7.3 billion pesos. Emperador attributed this to rising inflation which impacted both its whisky and brandy segments to result in higher input and logistics costs, as well as advertising and promotional expenses which were recorded with increased on-trade activities. These factors have a greater impact on the operating margins of the brandy segment where prices are more accessible compared to that of whisky, said the company. Emperador president Winston Co noted that the company’s earnings performance for 9M 2022 was limited by rising inflation despite its global business remaining robust. “There is so much volatility in the global market. We are glad to deliver sustained earnings through our wide portfolio of brands,” he said.

Despite no year-on-year change to its distributable income for the second half-year ended Sep 30, Frasers Logistics & Commercial Trust (FLCT) posted a lower distribution per unit (DPU) of 3.77 Singapore cents for the period, a 2.8 per cent fall from 3.88 cents. The real estate investment trust recorded a distributable income of S$139.6 million for H2, largely unchanged from a year ago. The DPU of 3.77 cents brings total DPU for FY2022 to 7.62 cents, 0.8 per cent lower than the 7.68 cents for FY2021. FLCT’s adjusted net property income fell 10.6 per cent to S$162.1 million from S$181.3 million, while its revenue decreased by 9.7 per cent to S$214.5 million from S$237.6 million. The divestment of Cross Street Exchange, coupled with weaker exchange rates, resulted in lower adjusted net property income and half-year revenue, said the trust’s manager on Thursday (Nov 10). These were partially offset by contributions from acquisitions made in FY2021 and FY2022. The distribution will be paid out on Dec 15, after books closure on Nov 18. The trust’s weighted average lease expiry stood at 4.5 years, with a portfolio occupancy rate of 96.4 per cent.