Moderate 2H25 uplift amid mounting headwinds 

• Downgrade to HOLD with lower TP of SGD0.80 on lower valuation peg and earnings given heightened macro uncertainties and potential MSCI SG Index exclusion
• Resumption of high US export tariffs within Asia regions adds pressure to already soft macroeconomics
• Current float-adjusted market cap at SGD4.4bn, below the highest of five constituents (~SGD4.8bn) that was removed back in May 24
• Cut FY25F/26F adj. EBITDA by 2%/3% on lower gaming volumes amid heightened macro uncertainty   

High US tariffs within Asian regions to moderate 2H25 uplift

Renovation progress on track with recent opening of The Weave retail space and official opening dates for Oceanarium and The Laurus announced.  The company has delivered on its target completion timelines. The Weave opened on 1 Jul 25, with more tenants like Pierre Hermé expected to open in the coming months. The Oceanarium is set to open on 23 Jul, while The Laurus has been taking bookings since May. As such, we expect to see sequential y/y growth in 2H25.

However, growth could be muted vs. our initial expectations.  We were previously upbeat on a strong 2H25, backed by the refreshed attractions. However, with rising macro and political headwinds in the region, especially in Indonesia and Thailand, we have turned less sanguine on the 2H25 outlook.

Cut FY25F/26F adj. EBITDA by 2%/3% on softer gaming revenue, as regional macro conditions continue to weigh on inbound tourism.  RWS&rsquo s core clientele, comprising mainly regional tourists, are likely to be disproportionately affected by economic pressures and more cautious with discretionary gaming spend compared to their Western counterparts. As these macro uncertainties are expected to persist into FY26F, we have accordingly revised down our earnings forecasts.

Moderate 2H25 uplift amid mounting headwinds 

• Downgrade to HOLD with lower TP of SGD0.80 on lower valuation peg and earnings given heightened macro uncertainties and potential MSCI SG Index exclusion
• Resumption of high US export tariffs within Asia regions adds pressure to already soft macroeconomics
• Current float-adjusted market cap at SGD4.4bn, below the highest of five constituents (~SGD4.8bn) that was removed back in May 24
• Cut FY25F/26F adj. EBITDA by 2%/3% on lower gaming volumes amid heightened macro uncertainty   

High US tariffs within Asian regions to moderate 2H25 uplift

Renovation progress on track with recent opening of The Weave retail space and official opening dates for Oceanarium and The Laurus announced.  The company has delivered on its target completion timelines. The Weave opened on 1 Jul 25, with more tenants like Pierre Hermé expected to open in the coming months. The Oceanarium is set to open on 23 Jul, while The Laurus has been taking bookings since May. As such, we expect to see sequential y/y growth in 2H25.

However, growth could be muted vs. our initial expectations.  We were previously upbeat on a strong 2H25, backed by the refreshed attractions. However, with rising macro and political headwinds in the region, especially in Indonesia and Thailand, we have turned less sanguine on the 2H25 outlook.

Cut FY25F/26F adj. EBITDA by 2%/3% on softer gaming revenue, as regional macro conditions continue to weigh on inbound tourism.  RWS&rsquo s core clientele, comprising mainly regional tourists, are likely to be disproportionately affected by economic pressures and more cautious with discretionary gaming spend compared to their Western counterparts. As these macro uncertainties are expected to persist into FY26F, we have accordingly revised down our earnings forecasts.