Malaysian Gaming companies have underperformed compared to the FBM KLCI stock market index in 2024. Still, UOB Kay Hian (UOBKH) Research anticipates a gradual recovery in share prices during the first half of the financial year 2025.
The FTSE Bursa Malaysia KLCI, also known as the FBM KLCI, is a major stock market index which tracks the performance of the 30 largest companies by full market capitalization.
According to a report by The Star, UOBKH Research believes that the sector’s earnings growth, attractive valuations, and strong dividend yields create a promising investment opportunity.
The firm expects sequentially stronger earnings from the fourth quarter into 1H25, driven by an influx of international tourists and robust domestic consumption.
The research indicates a continued growth trend in consumer spending, which rose by 4.9 percent year-on-year in the third quarter of 2024. Moreover, business volumes for the casino and number forecast operator (NFO) segments remained solid in October and November 2024.
UOBKH also forecasts improved results for both Genting Bhd and Genting Malaysia in 4Q24, with Resorts World Genting’s gross gaming revenue (GGR) expected to return to approximately 100 percent of 2019 levels, up from 90 percent in the third quarter.
Genting Malaysia is also positioned to potentially secure a full casino license in downstate New York, which could significantly boost earnings.
