Genting Malaysia Bhd (GENM) is expected to deliver a stronger performance in the second half of 2026, supported by a recovery in visitor arrivals at Resorts World Genting (RWG) and improving earnings from its US casino operations, according to CIMB Research.
The research house maintained its “Neutral” rating on Malaysia’s gaming sector but reaffirmed GENM as its top pick, retaining a “Buy” call with a target price of RM2.50.
Resorts World Genting expected to rebound
CIMB noted that Malaysia’s tourism industry continued to perform strongly in early 2026, with international visitor arrivals rising 5.4% year-on-year to a record 10.6 million in the first quarter.
Chinese tourists remained the biggest growth driver, with arrivals increasing 25% year-on-year, supported by the Visit Malaysia Year campaign and the launch of 26 new scheduled and charter flight routes during the quarter.
Domestic tourism also remained resilient, with visitor numbers growing 7.2% while spending increased 15.8% year-on-year.
Despite the favourable tourism backdrop, RWG recorded a 4% year-on-year decline in visitor arrivals to 5.5 million during the first quarter, partly due to fewer school holidays following Malaysia’s return to a January academic calendar and lower theme park ticket sales after promotional pricing introduced last year.
CIMB expects RWG’s visitor numbers to return to year-on-year growth in the second half as domestic tourism continues to strengthen.
The research house added that concerns over higher international airfares are unlikely to significantly affect RWG, given that around 90% of its visitors are Malaysians and Singaporeans.
US casino operations gaining momentum
CIMB also expects GENM’s US operations to provide stronger earnings support over the coming quarters.
Its Resorts World New York City commenced full-scale commercial casino operations on 28 April, offering approximately 250 gaming tables and 2,500 slot machines.
During the first eight weeks of operations, weekly gross gaming revenue increased by around 49% compared with the second quarter of 2025, when the property operated only slot machines and electronic table games.
The research house expects gaming revenue to continue rising during the second half as operations mature beyond the initial soft launch phase.
Meanwhile, parent company Genting Bhd’s Resorts World Las Vegas is also expected to sustain its recovery following a strong first quarter, supported by higher convention attendance at the expanded Las Vegas Convention Center and improving premium gaming volumes.
Earnings recovery expected in 2027
While CIMB forecasts GENM’s core earnings per share to decline 50% year-on-year in 2026, it expects second-half earnings to improve significantly from the first half due to a full six-month contribution from the New York casino.
Looking further ahead, the research house projects core earnings per share to surge 125% in 2027 as the New York operation ramps up further.
CIMB said GENM currently trades at an attractive valuation, with its forecast 2027 enterprise value-to-EBITDA multiple of 7.3 times, representing a 22% discount to its 10-year historical average before the COVID-19 pandemic.
The key downside risk to the outlook remains weaker-than-expected earnings from Resorts World New York City over 2026 and 2027, the research house said.
