Genting Berhad / Lim Kok Thay

[winston]

not vested

Genting Bhd (GENT MK)
Not much upside from the return of Chinese visitors
Maintain BUY and MYR5.35 SOP-based TP

Under a ‘blue sky’ scenario where the 1.0m Chinese visitors that visited RWG in FY19A return in FY24E and RWS FY24E mass market GGR recovers to 100% of FY19A levels driven by the return of Chinese tourists, our FY24E earnings for GENT could be raised by 10% but our SOP-based TP could be tweaked by only 3% to MYR5.51.

Yet, there could be upside from RWLV should Chinese visitors return to Las Vegas.

We maintain our earnings estimates, BUY call and MYR5.35 SOP-based TP for now.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/288197.pdf

[winston]

not vested

Best quarterly result in years
Maintain BUY call with higher TP of MYR5.49 (+2%)

Results handily beat our expectations on better-than-expected RWS VIP volume and Meizhou Wan contributions.

In fact, 3Q23 core net profit was the highest since 4Q19.

Going forward, we believe that the earnings outlook for GENT’s major segments is bright.

RWLV also appears to have found its footing with another record EBITDA of USD52m in 3Q23.

We raise FY23E/FY24E/FY25E EPS for GENT by 37%/15%/11% and our SOP-TP to
MYR5.49 from MYR5.36. Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/352732.pdf

[winston]

not vested

Winning at every table

9M23 core net profit was in line, at 74%/73% of our/Bloomberg consensus’ full-year forecasts, amid better performance for all subsidiaries.

GENT remains a strong proxy to the revival of tourist arrivals in both Malaysia and Singapore, in our view.

Reiterate Add with unchanged TP of RM6.95 based on a 30% SOP discount

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 541E4228CE

[winston]

not vested

Genting (GENT MK)
TauRx’s Positive Discovery A Potential Wild Card

TauRx’s convincing 24-month Phase 3 clinical trial data for its Alzheimer’s HMTM drug may be the missing puzzle piece for regulatory approval, and could eventually unlock deep value in GENT’s investment.

On hindsight, the procedure for HTMTM securing approval and commercial rollout may be lengthy. That said, even without the TauRx factor, GENT trades at a cheap valuation with plenty of re-rating catalysts.

Maintain BUY with a higher target price of RM6.13 as we partially impute TauRx’s option value.

Source: UOBKH

https://research.uobkayhian.com/content ... b4c6f7ebfb