Genting Berhad / Lim Kok Thay

[winston]

vested

Action speaks louder than words

Upgrade to BUY with unchanged SOTP-TP of MYR3.98

The Lim family and CEO buying shares at valuations near all-time lows gives us the confidence that share price could have fully discounted all possible positives.

Near term catalysts are TauRx receiving approval for its Alzheimer’s drug and positive resolution to NGCB's investigation on RWLV.

Key risk however is GENM losing its USD600m lawsuit.

Our estimates and SOTP-TP of MYR3.98 are unchanged.

With share price decline of >10% since its disheartening 4Q24 results, the stock now offers 23% upside and 3% dividend yield, we upgrade GENT to BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/444425.pdf

[winston]

not vested

Genting to pay US$10.5mil fine in Nevada gaming settlement

The settlement deal is still subject to approval by the Nevada Gaming Commission at its next monthly meeting on March 27.

Source: The Star

https://www.thestar.com.my/business/bus ... settlement

[winston]

not vested

Genting at turning point with Las Vegas catalyst

RWLV currently accounts for 6% of the group’s earnings before interest, tax, depreciation and amortisation (Ebitda), down from 10% in 2023.

EBITDA US$107mil recorded in 2024.

Genting continues to generate steady annual cash flows of RM7bil to RM8bil, and a potential turnaround at RWLV could alleviate valuation pressure.

Genting is trading at a 46% holding company discount.

Genting has a 20.3% stake in TauRx, which is awaiting approval from the UK authorities for its treatment to combat Alzheimer’s disease.

TauRx’s revenue potential could range between US$480mil and US$3.6bil upon successful commercialisation, which would value Genting’s 20.3% equity stake in TauRx at RM1.06 to RM2.64 per share.

Source: The Star

https://www.thestar.com.my/business/bus ... s-catalyst

[winston]

not vested

Still sequentially better

Maintain BUY with lower SOTP-TP of MYR3.86

Results underperformed on higher-than-expected net interest expense and still recovering RWLV.

Earnings were down YoY but more importantly to us, up QoQ.

We cut our earnings estimates by 3-13% on lower GENM and GENP earnings coupled with higher interest expense and SOTP-TP to MYR3.86 from MYR3.98.

Maintain BUY.

Key catalysts would be 20%-owned TauRx obtaining regulatory approval for its Alzheimer’s combatting drug and GENM winning a full casino license in New York City (link).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/462355.pdf

[winston]

not vested

1Q25 dragged by GENM weakness

1Q25 results missed expectations.

RWLV’s AML case has reached a settlement, removing a key overhang.

Reiterate Add but cut FY25-FY26F EPS and lower TP to RM3.57.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 7B6BD814E4