Quick recovery for Genting in 2H, says Kenanga


KUALA LUMPUR: Kenanga Research expects a quick recovery for Genting Bhd in 2HFY21 despite the release of FY20 results that came below expectation.

"Upcoming 1QFY21 result is expected to be weaker given the on-going MCO 2.0 in Malaysia.

"However, business volume is likely to recover strongly from 2HFY21 onwards due to the vaccination deployment which has just started recently," it said.

In FY20, results were below Kenanga's expectation with a core profit of RM207.7mil, which made up 40% of its estimate. However, the group beat market expectation with the consensus expecting a net loss of RM412.2mil.

Kenanga cut FY21 earnings forecast by 3%, mainly on adjustment for MCO 2.0 closure for Genting Malaysia's Resort World Genting operation but raised Genting Plantation earnings slightly by 1%.

It introduced its FY22 forecast with earnings expected to jump 70% from the low base.

Kenanga maintained its "outperform" recommendation on the stock and raised the target price to RM5.93 from RM5.90 based on unchanged five-year mean discount of 42.7% to its sum-of-parts valuation.

"We believe Genting is a good pick for recovery play as we believe its business should recover quickly once travelling restriction are lifted which was witnessed earlier by Gen Singapore and Genting Malaysia enjoying pent-up business volume post business resumption," it said.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
   

Next In Business News

Bitcoin falls 7% as cryptos stumble over Biden tax plans
Taiwan's chip industry set for years of growth: minister
AirAsia partners RinggitPlus to set up one-stop financial marketplace
CPI up 1.7% to 122.9 in March 2021
Maxis records 1Q net profit of RM334mil, declares 4 sen/share div
Digi posts RM264.8mil earnings in 1Q, declares 3.4 sen dividend
AirAsia Group expects 'clarity' on fundraising in 2-3 months
Pertama Digital keen to apply for digital banking license
KLCI holds firm as glove shares stay bullish
Ether plunges 10% a day after hitting record high

Stories You'll Enjoy


Vouchers