Maybank IB raises earnings outlook on Genting in anticipation of Yokohama resort win

KUALA LUMPUR: Maybank Investment Bank Bhd is growing more bullish on Genting Bhd as it expects Genting Singapore and its joint-venture partner to secure the Yokohama integrated resort (IR) request for proposal (RFP) process.

The research house said Yokohama IR could complete its first full year of operations in FY28, leading to earnings accretion of RM2.9bil, which is more than Genting's FY19 core net profit of RM2.2bil.

It noted that in Resorts World Sentosa's first year of operations, Genting Singapore's contribution doubled Genting group's core net profit.

Maybank IB reiterated its "buy" call and raised its sum-of-parts target price by 10% to RM6.26 on expectations of a Yokohama IR win in June to August 2021.

"If GENS and its JV partner win the Yokohama IR RFP process and GENT’s share price reacts the same way as when GENS won the Sentosa IR RFP process, we do not discount the possibility that GENT’s share price may hit MYR10," it said.

Meanwhile, the research house forecasts that Genting will record a FY21 net loss of RM99mil from a net profit of RM113mil, due to expectation of Genting Malaysia posting a 76% wider net loss.

However, it maintained its FY22 and FY23 earnings projections as the increased Covid-19 vaccination rate in Malaysia could preclude Resorts World Genting from shutting down again.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

China state media seeks to calm investor nerves after stock rout
China bond bulls unfazed by crackdown on capital markets
Bursa lacklustre after overnight decline on Wall Street
Maybank IB lowers earnings projections on Globetronics
Kenanga maintains 'outperform' on Kossan
Trading ideas: Kossan, Globetronics, DNex, VSTECS, AirAsia
US metals buyers paying highest ever premium for Aluminium
IMF raises growth forecasts for rich nations, dims outlook for Malaysia and developing world
Microsoft scores record quarterly profit on cloud boost
GameStop to join S&P MidCap 400 index next week

Stories You'll Enjoy