PETALING JAYA: Genting Bhd
is expected to deliver a stronger second half of financial year 2026 (2H26), driven by improving earnings at Resorts World New York City (RWNYC) as its commercial casino operations ramp up, alongside the seasonally stronger period for Resorts World Las Vegas (RWLV), according to CIMB Research.
The research house maintained its “hold” call on Genting but lowered its target price by 6% to RM2.30 from RM2.45, after factoring in a higher risk-free rate and increased RWLV net debt, partly offset by a higher valuation for Genting Plantations Bhd (GenP).
CIMB Research said Genting’s second-quarter core earnings per share fell 65% year-on-year and 45% quarter-on-quarter, while 1H26 earnings accounted for 29% of its full-year forecast, broadly in line with expectations.
It expects earnings to improve in 2H, led by RWNYC and RWLV.
Genting Malaysia Bhd’s (GenM) second-quarter core net profit declined 46% year-on-year to RM132mil, although earnings improved more than 100% quarter-on-quarter.
At the earnings before interest, taxes, depreciation, and amortisation (Ebitda) level, GenM grew 1% year-on-year, supported by Resorts World Genting’s cost management and better VIP win rate, as well as the launch of RWNYC’s commercial casino operations on April 28.
However, CIMB Research expects GenM’s FY26 core earnings per share to decline 50% year-on-year, weighed down by RWNYC’s initial earnings drag from higher depreciation and interest costs.
It expects the New York property to become a more meaningful earnings contributor as operations mature.
Genting Singapore Bhd’s second-quarter core net profit eased 4% year-on-year to RM294mil despite a 12% increase in Ebitda, as higher depreciation from ongoing asset enhancement and lower interest income weighed on earnings.
Gaming revenue was broadly flat, while non-gaming revenue grew 3%, supported by new offerings including the Singapore Oceanarium and WEAVE.
CIMB Research forecasts FY26 core net profit to decline 12%.
GenP provided a bright spot, with second-quarter core net profit jumping 2.7 times year-on-year to RM140mil, supported by a 12% increase in fresh fruit bunch output, higher palm kernel prices and lower crude palm oil production costs.
CIMB Research raised its FY26 and FY27 earnings forecasts for GenP by 18%.
At RWLV, second-quarter Ebitda fell 52% quarter-on-quarter to US$97mil but remained 33% higher year-on-year.
CIMB Research expects its FY26 net loss to narrow by 35%.
