Maybank Investment Bank has maintained a “Buy” call recommendation on Genting Malaysia Bhdwith a TP of RM3.30 adding that the Omicron wave which began in Malaysia in Feb 2022 slowed RWG’s recovery.
It said that we cut FY22E EPS by 40%, yet its FY23E/FY24E EPS are little changed as the aforesaid wave is subsiding. “There could be another MYR0.53/sh of upside potential if Resorts World New York City (RWNYC) is converted into a full casino,” the stockbroking firm said.
It said that there could be another MYR0.53/share of upside potential if RWNY is converted into a full casino “We have also introduced an expanded ESG tear sheet for GENM and assigned it a slightly below an average overall score of 48, based on its aggregated quantitative/qualitative/target-based metrics,” it said.
The stockbroking firm said that it expects RWG to reopen all c.10k rooms from FY23E onwards adding that channel checks also reveal that few Malaysian VIPs are flying to Singapore, Phnom Penh, and Manila to gamble relative to pre-COVID-19 levels.
It said that it gathers that Malaysian VIPs are rebuilding their businesses and a weak MYR is discouraging overseas travel. We believe this will put a floor on RWG’s VIP volume which we estimate averaged at MYR4.4b/month in FY21.
