KUALA LUMPUR: AmInvestment research has maintained its hold call call on Only World Group Bhd (OWG) with a higher fair value of 71 sen from 56 sen previously after rolling forward its valuation period to FY21F as it expects higher foot traffic in its Genting operations.
The research house said in a note that it increased its FY21F earnings forecast for the group by 21% as on news that Genting Malaysia had made a settlement with 21st Century Fox with regards to its outdoor theme park.
"In light of the news, we have revised our estimated spend per outlet and operating margins for OWG’s Genting operations as we anticipate higher foot traffic upon the completion of the outdoor theme park.
"OWG is currently operating over 20 food service outlets (FSO) and more than 15 family attractions in Genting, making up circa 40% of its bottom line," it said.
However, AmInvestment cut its OWG earnings foreast for FY19F from a core net profit of RM2.9mil to a loss of RM5.4mil to account for the RM5.7mil loss in 3QFY17 on the back of lower business volume in its The Top, Komtar Tower operations.
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