Whether Genting Singapore's earnings boost from its expansion of integrated resort Resorts World Sentosa would be commensurate with the significant capital expenditure needed to fund the move is a key question for investors, says CreditSights in a note.
The market-intelligence firm is "more cautious than convinced," citing the large scale of the capex at 6.8 billion Singapore dollars and the dominance of Genting Singapore's local peer Marina Bay Sands in the premium-mass segment.
The revenue-generating potential of new attractions under Genting Singapore's expansion also seems highly uncertain, says CreditSights.
Meanwhile, the closure of certain hotels and phased renovation of the casino would cause disruption to earnings until around 2028, CreditSights adds.