Genting Malaysia reopening likely “imminent” : UOB Kay Hian

resorts world genting, highlands

Genting Malaysia has not yet reopened its casinos, but the permission to resume operations is expected to be “imminent,” local brokerage house UOB Kay Hian wrote in a note.

The country’s number forecast operators (NFOs), akin to lottery shops, were permitted to restart from Sept. 15 and the brokerage expects a swift recovery due to pent-up demand. 

“With the nation’s encouraging vaccination milestones, we are optimistic that the NFOs will chart an uninterrupted swift earnings recovery and meaningful capital appreciation,” local media reported the firm as saying. 

“Investors will again be attracted to the sector’s compelling risk-reward return, resilient cash flows and more than 6.6 percent lucrative yield. Maintain overweight,” it said.

The analysts said they expected to see a steep earnings recovery from 4Q21 onwards as vaccination rates improve. About 54 percent of the population have received both jabs. 

Malaysia’s two listed NFOs are Berjaya Sports Toto and Magnum.

Resorts World Genting, the country’s only integrated resort, has been closed since May 31 due to a spike in Covid cases in Malaysia. 

UOB Kay Hian has an overweight rating on the gaming sector.