PETALING JAYA: Integrated resort operator Genting Malaysia Bhd
or GenM is expected to see stronger financial contribution in the second half of 2026 (2H26) from overseas operations.
Analysts remained cautious on the stock, with Kenanga Research maintaining an “outperform” call but cutting the target price (TP) to RM2.70 from RM3 after the company reported a 40% drop in core net profit (CNP) in 2Q26 compared to 2Q25.
The brokerage said CNP for 1H26 was 29% of market consensus’ financial year ending Dec 31, 2026 (FY26) estimates.
“We downgrade FY26 and FY27 core earnings-per-share by 15% to 9.5 sen and 12% to 13.1 sen, respectively,” it said.
It expects stronger overseas earnings ahead as Resorts World New York City (RWNYC) offers up more tables and machines. RWNYC would have 400 tables and 4,000 machines by the end of FY26 from 245 tables and 2,465 machines currently. Eventually, 800 tables and 6,000 machines would be installed come FY29.
RWNYC has been undergoing a US$5.5bil expansion and redevelopment, which includes turning the racino operations into a full-fledged integrated casino resort.
The first phase of the project was opened in April 2026, with the redevelopment in its second phase.
The company’s UK casinos have seen revenue growth that should continue despite disruption to tourism from the Middle East conflict.
“A new three-storey casino-cum-restaurant at London’s Picadilly Circus is due to open in FY27, further supporting growth for the UK gaming operation,” it said, adding that earnings would grow once expansion-related and restructuring costs stabilise.
TA Research has upgraded the stock to a “hold” from “sell” while maintaining the TP at RM1.82 as it noted that US operations chalked up 121% revenue growth and 169% growth in adjusted earnings before interest, tax, depreciation and amortisation.
