Genting Malaysia (GENM) reported a net loss of RM348.1m in 2QFY21, a significant improvement from 2QFY20 net loss of RM900.4m as most operations were shut last year during the initial wave of the Covid-19 pandemic. Nevertheless, 1HFY21 results came in below our and market expectations due to the impact of prolonged lockdown in Malaysia. Although the government has ramped up the National Covid-19 Immunisation Programme in recent months, it remains uncertain when the tourism sector will be allowed to resume operations given the challenges surrounding the evolving Covid-19 situation. As a result, we slash our FY21F forecast to a net loss of RM1.2bn and lower our FY22F profit forecast by 30% to RM646m. However, as we reckon investors should not be focusing on near-term earnings setback but towards a gradual improvement for the group in FY22-23F, we now value GENM based on 2-year average forward earnings. Consequently, our SOTP-based valuation is revised from RM3.00 to RM3.25. Maintain Neutral on GENM. No dividend was declared for the current quarter.
Source: PublicInvest Research - 27 Aug 2021
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Created by PublicInvest | Sep 20, 2024
Actually the latest quarter is not bad! Since only Genting Highlands is close at the moment, US and UK side are doing surprisingly good business! In fact, New York side has been a suprise bonanza with latest mall casino to be openned next year adding more revenue soon! As for Genting Highlands, it should be allowed to open as long as all staff are fully vaccinated! Which they already done so!
2021-08-28 13:06
Government should allow Genting to open to fully vaccinated guests! Beside, Genting has the best track record in preventing Covid so far!
2021-08-28 13:07
trum
Losses Due To Prolonged Lockdown
2021-08-28 13:04