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Leisure Stocks to Holiday With

HolidayEveryone needs some leisure time once in a while to unwind from our hectic work schedules. What are some of the leisure stocks listed in Singapore that spreads some joy when we desperately need it?

Bowling “for Soup”

If one of your favourite past-times is bowling, you might be bowled over by Superbowl Holdings Limited (SGX: S48). The company is South-East Asia’s leading provider of indoor sports and recreation facilities.

Its areas of business include bowling outlets that cater to both professional and recreational bowlers, billiard and pool centres; arcade and LAN game outlets. It also operates the SuperBowl Golf & Country Club with a pool, spacious gym, tennis courts and 140 golf driving bays. SuperBowl also has investments in commercial properties and food and beverage outlet.

At $0.52, the shares are flirting with the all-time high of $0.55. The business is valued at 13 times profit and the dividend yield is around 1%. The yield has been compressed significantly due to the rise in its shares.

Cash for Chips

Genting Singapore PLC (SGX: G13) would be well-known to many Singaporeans because it operates one of the two Integrated Resorts – Resorts World Sentosa – in Singapore. It is one of the largest companies in Singapore by market capitalisation.

Resorts World Sentosa prides itself as one of the largest integrated destination resorts in Asia, offering a casino, Universal Studios Singapore theme park, MICE facilities, hotels, F&B and specialty retail outlets and Marine Life Park – boasting the world’s largest Oceanarium.

Genting is valued at 28 times earnings and the dividend yield is 0.7%.

Cruising on the Waters

Genting Hong Kong Limited (SGX: S21), though it shares a similar name with Genting Singapore, is involved in different businesses. That said, the parent company, for both Genting Singapore and Genting Hong Kong are the same – Genting Berhad, which is a company listed on Bursa Malaysia.

The chart below will explain things better:

Genting structure

(Source: Genting Berhad website)

Genting Hong Kong is a leading multi-national leisure, entertainment and hospitality enterprise. It is involved in both land and sea-based businesses such as Star Cruises, Asia-Pacific Norwegian Cruise Line (Norwegian) and Resorts World Manila.

There were plans to list Resorts World Manila in a $500m flotation. However, this was put on hold due to weak market sentiments. Genting Hong Kong is trading on a PE of 17.3 and it does not pay a dividend.

Fancy a Cable Car Ride?

If you hate bowling, gambling or going for a cruise, how about going for a cable car ride that offers a spectacular view of Mount Lishan Xi’an, in China, and its surroundings?

If so, then Straco Corporation Limited (SGX: S85) is a Singapore developer, operator and investor of premier attractions and tourism-related projects in China. Its businesses include the operation of Shanghai Ocean Aquarium, Underwater World Xiamen, The Lixing Cable-Car, and production of entertainment shows.

The company is highly free cash-flow generative and thus, it has paid consistently increasing dividends over the past six years. Last year, Straco paid a gross dividend of 0.75 cents per share and a special dividend of 0.5 cents per share, giving a total payout of 1.25 cents per share.

The company is valued at around 13 times earnings and its dividend yield is 2.5%, excluding the special dividend. The yield jumps to 4.2% if we the special dividend is included.

Foolish Bottom Line

No matter what activity you fancy in your leisure time, you should always fancy understanding a business thoroughly before investing in it. Investing in leisure stocks is no different.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.