Japanese investment bank Daiwa Securities Group Inc has included conglomerate Genting Bhd in its key calls for Malaysia for the second half of the year.
Genting is engaged in gaming operations in Singapore, the Philippines, Europe and the United States. It is also the parent company of Genting Malaysia Bhd, which operates the country’s only casino resort.
“We like Genting given the emerging share-price catalyst as the group embarks on the development of a Las Vegas casino,” Daiwa analysts wrote in a report issued earlier this month. “We estimate that it could add 6.7 percent to 12.8 percent” to Genting’s earnings before interest, taxation, depreciation and amortisation (EBITDA) and net profit for full 2015, when the property is forecast to open, they added.
Genting has focused much of its recent international expansion on the United States. The group is expecting final approval from Nevada gaming regulators to start building its US$4 billion Resorts World Las Vegas (pictured in a rendering). RW Orange County LLC, a unit of Genting Malaysia, has proposed two separate billion-dollar casino projects for upstate New York. The group already owns and operates the Resorts World Casino New York City.
Fitch Ratings Inc said last month the development of several large scale projects could hurt Genting’s finances.
Daiwa’s analysts noted that after having underperformed the broader market in the first half of this year, gaming stocks in Malaysia look “ripe for a recovery as capital flows return”.
The investment bank forecast Malaysia’s gaming sector would register 14 percent year-on-year earnings growth for 2014. The analysts also highlighted the gaming sector’s resilient domestic business and high dividend yields among the factors to have a positive impact on share prices.
Nov 23, 2020All casinos in South Korea’s Seoul metropolitan area, including Incheon, are required with effect from 12am on Tuesday (November 24) to suspend operation due to an uptick in Covid-19 cases in that...
"Unfortunately, I cannot come to Macau nor can any of my team. The global pandemic has created a situation that is very difficult for all of us … I am very hopeful that we can come to Macau to bring back a reimagined House of Dancing Water"
Creative director of the House of Dancing Water show