PETALING JAYA: Kenanga Research remains positive on Genting Malaysia Bhd
(GenM), underpinned by growth from its US operations and a steady recovery in its core Malaysian business.
The research house, which has reiterated an “outperform” call with an unchanged target price of RM3, said it is maintaining its forecasts for the financial years ending 2026 and 2027 (FY26 and FY27).
The research house noted that upside will be driven primarily by the ramp-up of Resorts World New York City (RWNYC) and improving earnings visibility across its key markets.
It noted RWNYC’s early launch of New York first full-service casino, which opened two months ahead of schedule, positioned GenM to immediately capture pent-up demand for live gaming in a market.
Despite being among the three richest states in the United States, New York’s gross gaming revenue trails neighbouring states at half its gross domestic product, said Kenanga Research.
The research house pointed out that many New York gamers have historically travelled to nearby states such as Pennsylvania, New Jersey and Connecticut for live casino offerings and RWNYC now enjoys a first-mover advantage.
It added that while three full-service casino licences have been issued in New York City, it is currently the only operator with an existing gaming footprint.
“As the other two projects have to seek planning approvals, raise funds, construct the premises, recruit and train personnels, RWNYC has started with 242 live tables and 2,507 slots and plans to double its live tables and slots by the end of this year,” Kenanga Research said.
It added that competitors still face lengthy processes involving approvals, funding and construction.
The research house said RWNYC planned to double capacity by year-end. The group is targeting 11 million to 15 million visitors annually, leveraging its proximity to the John F Kennedy International Airport and a sizeable local and tourist base.
In terms of expansion, the group is committing some US$4.5bil expansion which will see gaming space doubled, hotel rooms increased from 400 to nearly 2,000, and significant additions in entertainment, retail and convention facilities by 2029.
“By FY27, RWNYC should be able to double its annual earnings before interest, taxes, depreciation, and amortisation to US$200mil to US$250mil and to reach US$300mil to US$400mil over FY29 to FY30. Hence, RWNYC’s cashflows should be able to support US$1bil to US$2bil of debts,” the research house said.
Beyond the United States, it noted that GenM’s core operations are showing signs of recovery.
Resorts World Genting, which is its main earnings contributor, is benefiting from improving visitor arrivals, which rose 5% year-on-year in the first quarter of 2026, partly driven by Visit Malaysia Year 2026.
In the United Kingdom, regulatory changes allowing smaller casinos to expand machine capacity from 20 to 80 since July 2025 are expected to lift earnings over FY26 to FY27.
That said, risks include potential licence issues, unfavourable payout ratios, weaker consumer spending amid inflation, and the broader challenge of gaming being perceived as a socially sensitive sector.
An analyst told StarBiz that Kenanga Research’s prospects hinge on GenM’s ability to monetise RWNYC’s early-mover advantage while sustaining a recovery in its regional operations.
This could gradually close the valuation gap as investors prefer to wait for actual earnings delivery, especially in New York.
