The “worst” of the crisis may be over for Resorts World Genting, with a significant improvement in visitation since it reopened three months ago, RHB Research said in a note.
Analyst Loo Tunwye said the firm had recently visited the property, owned by Genting Malaysia, and said it had a positive view on the pace of recovery.
“We visited RWG on 19 Sep in the evening, to observe the crowds after three months of the integrated resort’s reopening. Overall, we were positive, as the crowd was decent and has improved significantly since the re-opening,” he said.
Most shops were open and there were queues to get into some of the most popular restaurants and non-gaming attractions.
Entry to the SkyCasino is restricted to Genting Rewards members, but RHB noted there were many more guests than three months ago.
Almost all tables are open with a minimum bet of MYR50.
“Interestingly, guests can now stand behind seated ones to place their bets. Around 3-4 persons are allowed to stand behind the seated guests, which brings the total guests per table at c.7-8 persons. Previously, only 2-4 persons were allowed at each table,” he said. “ While the numbers have yet to reach pre-Movement Control Order levels – where guests per table can easily number 20 to 30 at a time, we are positive on the gradual relaxation of social distancing rules within the casino. As for the slot machines, they are still operating in alternating arrangements.”
RHB said it believed the recovery at Genting had reached an inflection point, though downside risks remain from further outbreaks.
The firm has a “buy” rating on the stock, with a target share price of MYR2.59, representing upside of about 23 percent.