PETALING JAYA: Genting Bhd
’s core net profit (CNP) is expected to see a rise in the financial year 2026 (FY26) and FY27, supported by CNP recovery from Genting Singapore and Genting Malaysia’s (GenM) New York operations.
However, analysts have cut their target price after factoring in Resorts World Las Vegas’ (RWLV) net debt.
GenM’s 4Q25 CNP turned around year-on-year (y-o-y) to RM114mil but fell 31% quarter-on-quarter (q-o-q), mainly on lower earnings before interest, taxes, depreciation, and amortisation (ebitda) from Resorts World Genting (lower VIP gross gaming revenue, high employee costs) and Resorts World New York City (RWNYC) which is in transition to new casino licence.
“We expect GenM’s CNP to fall slightly by 2% y-o-y in FY26, largely dragged by higher interest cost on debt raised by RWNYC to pay for the upfront commercial casino licence fee and capital expenditure for the initial phase,” CIMB Research said in a report yesterday.
An analyst, who spoke on the condition of anonymity, told StarBiz that despite the recent earnings volatility, Genting’s diversified portfolio across Malaysia, Singapore and the United States provided multiple recovery levers.
The key would be execution and balance sheet discipline going forward, the analyst said.
“The group’s prospects hinge largely on the ramp-up in RWNYC and a sustained recovery in Singapore.
“While RWLV remains a drag, we see gradual improvement across its core assets supporting earnings growth ahead,” he said.
Genting Singapore’s 4Q25 CNP fell 57% y-o-y to S$62mil, as gaming revenue fell 13% y-o-y on lower win rate, while casino receivables impairment was also higher.
This was partly buffered by a 13% y-o-y rebound in non-gaming revenue driven by newly refreshed attractions and hospitality offerings.
“We project Genting Singapore’s FY26 CNP to recover by 28% y-o-y, assuming normalisation in the gaming win rate and continued non-gaming revenue growth,” CIMB Research said.
The research house expected Genting Plantation’s CNP to decline 13% y-o-y in FY26, mainly on lower crude palm oil (CPO) prices (reflecting the RM200 per tonne cut to its 2026 CPO price assumption to RM4,000 per tonne).
Genting Plantation’s 4Q25 CNP fell 11% y-o-y to RM119mil due to lower fresh fruit bunch production (down 5% y-o-y), lower CPO prices (down 11.5% y-o-y to RM3,746 per tonne), and weaker associate contributions.
Meanwhile, CIMB Research said recovery at RWLV continued to be very slow with its 4Q25 ebitda increasing by 23% quarter-on-quarter to US$15mil on seasonally higher revenue and better margin of 7.9%.
However, in the overall scheme of things, the research house said this is “still far away from the average quarterly ebitda of US$47mil and margin of 21.2% between the fourth quarter of 2022 (4Q22) and 2Q24”.
The research house projected RWLV’s net loss to narrow by 6% y-o-y in FY26, with gradual improvement expected only over the next few years.
It trimmed it CNP forecast for Genting by 3% for FY26 but raised it by 14% for FY27 as Genting’s higher 73.8% stake in GenM (up from 49.3% before the mandatory takeover offer) gave it greater exposure to the RWNYC-driven jump in GenM’s FY27 CNP.
“Post earnings forecast revisions, we project Genting’s CNP to rebound by 243% y-o-y in FY26, mainly underpinned by Genting Singapore.
“We then expect CNP to rise by a further 33% y-o-y in FY27, led by GenM (RWNYC) and Genting Plantation (higher output),” it said.
Moreover, CIMB Research has cut its sum-of-parts-based target price for Genting by 23% to RM3.05, mainly due to the inclusion of RWLV’s net debt.
“We had previously excluded this as RWLV’s debt is non-recourse.
“However, our observation is that the market does not distinguish RWLV’s debt from group debt, and we also believe that if RWLV were to get into financial difficulties, Genting will step in to inject fresh capital,” the research house said.
