Maybank has lowered Genting Malaysia's earnings estimate for fiscal 2024 and 2025 by 4 and 5 percent, respectively, due to a two percentage point service tax rate hike in the country.

Maybank Investment Bank has cut its profitability expectations for Genting for the full-year ending December 31, 2023, with Genting Malaysia on slower-than-expected recovery in foreign visitor arrivals and Genting Singapore on lower-than-expected EBITDA margin.

Labor limitations forced Resorts World Genting to operate at 60% capacity, and still, Genting Malaysia posted an EBITDA of RM620mn for 2Q22, at 94 percent of 2019's full-year figures. 

Genting Malaysia (GENM MK) share prices are likely to see an improvement from the present-day price of 2.92 Malaysian Ringgit (~$0.66) to 3.27 MYR ($0.73), brokerage note from Maybank Investment Bank read.

Genting Malaysia’s 1Q22 results were lower-than-expected, though analysts forecast better times ahead as visitation to its new theme park picks up and the weak local currency helps to pull in tourists.

Malaysia is currently going through a spike in Covid cases due to the Omicron variant, though Maybank says it’s cautiously optimistic the impact on the gaming industry will be limited this time around.

Genting Malaysia’s long-awaited and much-anticipated SkyWorlds outdoor theme park will hold its soft opening on Tuesday, with analysts confident the attraction will prove to be a key driver of visitation to Resorts World Genting.

Analysts have turned more upbeat about the prospects for Malaysia’s gambling operators, despite a recent upswing in new Covid-19 cases, saying the sector is good value as stocks are still down between 15 to 26 percent on the prior year.