Only World Group: Prospects from Fox World theme park vanish Hold

Genting Malaysia Bhd is reported to be seeking over US$1 billion in damages from Walt Disney Co and 21st Century Fox Inc for pulling out of an agreement to sponsor a Fox World theme park in Genting Highlands. We downgrade our call from BUY to HOLD with a lower fair value of RM0.58/share (from RM0.74/share). We have cut our earnings forecast for FY20 and FY21 by 21% and 30%. Our FV is based on a PE of 16.5x FY20F EPS.

The 20th Century Fox World theme park in Genting was meant to be the first Foxbranded theme park in the world. However, as Walt Disney Co moves to finalize its acquisition of 21st Century Fox’s entertainment assets, it has decided not to proceed with the agreement. With the exclusion of a branded outdoor theme park and uncertainty over the future direction of the outdoor theme park, we have reduced our estimated spend per outlet and operating margins for OWG’s Genting operations.

Others:

Axiata: Aiming for profitability and cash flow Buy

IJM Plantations: Slips into the red in 2QFY19 Buy

Inari Amertron: Lacklustre smartphone sales drag earnings Buy

Pecca Group: Uptrend intact Buy

Salutica: 1QFY19 starts off well with new Bluetooth headset Buy

ATA IMS: Growth path charted Hold

Hartalega: Pushing for new norms with AMG Hold

Telekom Malaysia: Dividend disappointment from revised guidance Hold

TH Plantations: In the red in 3QFY18 Hold

Econpile: 1QFY19 margins tumble Underweight

IJM Corp: 1HFY19 core net profit eases 7% YoY Underweight

WCT Holdings: 9MFY18 core net profit halves YoY Underweight

RETAIL RESEARCH

Stocks On Radar: Merge Energy, Pentamaster, ATA IMS, Aemulus Holdings

NEWS HIGHLIGHTS

Kerjaya Prospek: Secures RM282mil jobs

MyEG: Eyeing Indonesian e-govt projects

Caely: Proposes one-for one bonus issue

Leisure & Hospitality Industry: Fox, Disney get sued for backing out of theme park deal

Source: AmInvest Research - 27 Nov 2018