GENM expects to complete by 2016 the world’s first Twentieth Century Fox World theme park at a cost of about RM1bn. A new hotel and cable car station will also be completed in the next two years. GENM has appointed Tan Sri Michelle Yeoh as its new brand ambassador. (Source: Financial Daily)  

Comments: We are neutral on this development, as the progress of the new theme park is on track as guided by management. In the short term, GENM is expected to add another 1,300 new rooms by mid-2015, which should help to boost visitor arrivals and in turn gaming volumes. For 9M14, recall that visitor arrivals had declined to within the single digit range due to the closure of the theme park for renovation, resulting in lower room occupancies. Currently, GENM has an existing capacity of about 10,000 rooms. Maintain ADD on GENM with unchanged PT of RM4.45.

Source: Affin Hwang Capital Research - 5 Dec 2014