Maybank Investment Bank Research said it assumes the facility will be shut for three months for MCO3.0, leading to core net loss growing by 76%.
"RWG was shut for 3 months from 18 Mar to 18 Jun 2020 and shut again for 25 days from 22 Jan to 15 Feb 2021.
"We gather that RWG will be shut for 3 months this time
and Genting SkyWorlds will only open in Dec 2021 to coincide with school holidays (10 Dec to 31 Dec 2021)," it said in a note.
The research house cut FY21 Resorts World Genting visitor arrivals to 8.5 million from 12 million on the back of the closure.
However, Maybank IB expects Genting Malaysia's FY21 core net loss to be only half that of FY20 due to business recovery in other countries.
It said Genting UK casinos reopened on May 17, 2021, after having been shut since Jan 3, 2021, whle Resorts World New York April 2021 gross gaming revenue has recovered to pre-Covid-19 levels and Resorts World Catskills' April 2021 gross gaming revenue has recovered to 84% of pre-Covid-19 levels.
For FY22 and FY23, the research house maintained its net profit estimates as the ongoing vaccination reduces the number of new Covid-19 cases and could prevent further shutdowns going forward.
"RWG visitor arrivals rebounded quickly when it reopened and interstate travel was allowed in 3Q20," it noted.
Maybank IB maintained its "buy" call on Genting Malaysia with a 2% lower discounted cash flow-based target price of RM3.38 from RM3.45 previously.
It added that in the event Resorts World New York is converted into a downstate commercial casino and Genting Malaysia write back its Mashpee Wampanoag Investment, FY23 earnings will be boosted 63%, leading to an 85 sen increase in the target price.