Genting Malaysia

[winston]

not vested

Genting Malaysia to inject another US$20m into Empire Resorts

by Adam Aziz

The group previously injected US$40 million into Empire Resorts in March last year, and another US$150 million in September, also through subscription of preferred stocks in the latter.

Empire Resorts owns and operates New York’s Resorts World Catskills and harness horse-racing facility Monticello Raceway.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... re-resorts

[winston]

not vested

Resetting RWG expectations
Maintain BUY call with lower TP of MYR3.38 (-2%)

RWG has been shut for the third time.

We assume that it will be shut for 3 months this time and widen FY21E core net loss by 76% but leave our FY22E/FY23E core net profit unchanged.

Trim our DCF-based TP by 2% to MYR3.38 from MYR3.45. Maintain BUY call.

Recall that should RWNY be converted into a downstate commercial casino; and GENM write back its Mashpee Wampanoag investment, we estimate that they will boost FY23E earnings by 63% and boost our DCF-based TP by MYR0.85.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/223486.pdf

[winston]

1H21 a beat; US unit put up a good show

Genting Malaysia’s (GENM) 1H21 core net loss of RM840m was a beat, due to better-than-expected US earnings.

Nil DPS missed our forecast of 6 sen.

FY22F/23F core net profit may rebound to RM1.2bn/1.6bn, post-Covid-19.

Reiterate Add, with an 8% higher SOP-based TP of RM3.45.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D54FFCD9AA

[winston]

not vested

Genting Malaysia – BUY

We expect GENM to be allowed to reopen Resorts World Genting Highlands (RWGH) in
September with Pahang state expected to move into Phase 3 of National Recovery Plan
(NRP).

The strong recovery pace for UK and US casinos which have recommenced operations
since mid-May 21 and Sep 20 respectively will continue to boost GENM's earnings in the
coming quarters.

Earnings recovery will also be supported by the potential easing of interstate borders
restrictions by 4Q21 when Malaysia achieves herd immunity. This will be largely anchored on vibrant local patronage which accounts for >70% Genting Highland's visitorships.

GENM is one of the cheapest casino stocks globally and is expected to provide a high DPS payout in FY22 (yielding about 6.6%), which puts it among the top-yielding Bursa-listed companies.

Share Price Catalyst

Appealing FY22 dividend yield of about 6.6%, taking into account GENM’s capex for the
construction of its outdoor theme park which is nearing completion.

Recovery of patronage from Kuala Lumpur and Selangor after interstate travel restrictions are lifted.

Source: UOBKH

[winston]

not vested

Genting Malaysia Bhd (GENM MK)
4Q21: RWG Achieved Swift Earnings Recovery

With RWG’s business normalisation and resilient performance from the UK and US
operations, GENM turned around its qoq losses and delivered impressive earnings
recovery with enhanced EBITDA margin.

GENM remains poised to become a major market outperformer in 2022, leveraging on the upcoming border relaxation, rewarding dividend yields and pent-up domestic demand boosted by recent Genting SkyWorlds’ launching.

Maintain BUY and target price of RM4.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 2052527ca7

[winston]

Waking from slumber

Maintain BUY call and tweak TP to MYR3.37 (-1sen) 4Q21/FY21 results were better than we expected.

After nearly 2 years of losses, GENM recorded a 4Q21 core net profit as all its casinos were open.

Furthermore, GENM appears to concur with our view that gaming will not be impacted by Omicron in a major way due to its low mortality rate.

Our FY22E/FY23E earnings are little changed (-1%/-2%) and we introduce FY24E earnings.

Maintain BUY with a slightly lower DCF-based TP of MYR3.37 (MYR3.38 previously).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/253039.pdf

[winston]

not vested

Continue to place your bets

Business rebound at RWG YTD; SkyWorlds visitors may pick up in 2H22F.

RWNYC may win a full casino licence soon and add 13-15% to GENM’s TP.

Reiterate Add and TP of RM3.40. GENM is our top Malaysian casino pick.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... EB3A4C61CA

[winston]

not vested

Maintain BUY call with lower TP of MYR3.30 (-2%)

The Omicron wave which began in Malaysia in Feb 2022 slowed RWG’s recovery. Thus, we cut FY22E EPS by 40%.

Yet, our FY23E/FY24E EPS are little changed as the aforesaid wave is subsiding.

There could be another MYR0.53/sh of upside potential if RWNY is converted into a full casino (link).

We have also introduced an expanded ESG tear sheet for GENM and assigned it a slightly below average overall score of 48, based on its aggregated quantitative / qualitative/ target-based metrics.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/260957.pdf

[winston]

Some speed bumps; full recovery in FY23F

RWG is seeing strong pent-up demand. However, its recovery may be limited
by staff shortages. SkyWorlds also needs time to iron out technical issues.

We cut GENM’s FY22F core EPS by 52% to factor in slower RWG recovery.

Reiterate Add; TP lowered 3% to RM3.30; our top Malaysian casino pick.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3AE3679EA2

[winston]

not vested

Observations from our postCovid walkabout
Maintain BUY call with revised TP of MYR3.27 (-1%)

Genting SkyWorlds (GS) is taking time to ramp up while other Resorts World Genting (RWG) operations are being limited by labour.

Yet, we maintain a more sanguine view.

We revise FY22E/FY23E/FY24E EPS by - 30%/+7%/+7% and trim our DCF-based TP to MYR3.27 from MYR3.30.

There could be another MYR0.53/sh of upside if Resorts World New York City is converted into a full casino.

On another note, we raise our ESG score to 51 from 48 due to the addition of a female director to its BOD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/272322.pdf