KUALA LUMPUR – Maybank Investment Bank (Maybank IB) is widening its forecast core net loss for Genting Malaysia Bhd for the financial year ending December 31, 2021 by 52% on the delay of Resorts World Genting’s (RWG) reopening to November due to the current surging Covid-19 cases.
In a research note today, the bank said the net loss prediction is in line with its estimate of reduced RWG visitor arrivals to 5.0 million from 8.5 million.
It initially predicted a resumption of RWG’s operations in June.
The new timeline for the reopening coincides with the expectation that Malaysia will attain herd immunity in October.
However, Maybank IB maintains that Genting SkyWorlds will be opened in December to coincide with the school holidays.
“Our investment thesis of Covid-19 vaccination-led recovery remains intact as Malaysia is expected to achieve herd immunity by October 2021 as vaccinations have surged to more than 400,000 per day.
“At this rate, the government expects Malaysia to achieve herd immunity by October 2021. Thus, we hope that Malaysians will return to RWG in droves after that.”
It retained its forecast of the resort operator’s core net profits for the 2022 and 2023 financial years based on unchanged RWG visitor arrivals of 24.2 million and 26.2 million, respectively, for the said years.
It also maintained a “buy” call on Genting Malaysia with a 2% lower 12-month target price of RM3.32.
As at 10.25am, Genting Malaysia gained 2 sen to RM2.85. – Bernama, August 17, 2021
