RHB Research has maintained a “Buy” recommendation for Genting Bhd with a target price of RM3.45.
It said that it has maintained a “buy” call premised on the continued earnings recovery from the return of gamblers and tourists.
The stockbroking firm said that despite the higher number of tourists and an evident return of gamblers so far in 2022, GENM’s share price is still hovering around the level seen throughout most of 2021 when activity was evidently lower due to the various lockdowns.
It said that given the borders of neighbouring countries have opened, we think Genting Malaysia will likely ramp up efforts to attract tourists from around the region.
That said, RHB said that historically, more than 80% of RWG’s visitors have been domestic tourists. With a decent crowd on a weekday afternoon, we think that RWG should see higher footfall on the weekends and holidays, especially as SkyWorlds continues to draw many first-timers.
However, the stockbroking firm said that it was cautious about the impact of inflation on GENM’s recovery, as we think that it could reduce the number of gaming and non-gaming visitors, as well as reduce the drop per person, especially for the mass market segment
