Malaysian brokerage CIMB Securities has upgraded Genting Malaysia Bhd to “Buy” from “Hold,” citing expectations of a strong rebound in core earnings per share (EPS) in financial year 2027 (FY27), driven largely by its US operations.
The upgrade follows the award of a downstate New York commercial casino license to Genting Malaysia’s US subsidiary Resorts World New York City (RWNYC), according to a report by the Straits Times, which cited CIMB Securities’ investment memo.
CIMB Securities said the license award, announced on December 16th, was in line with market expectations and marked a key milestone in RWNYC’s transition to full-scale commercial casino operations. While near-term earnings pressure is expected, the brokerage said the longer-term earnings trajectory remains favorable.
As part of its revised forecasts, CIMB Securities cut Genting Malaysia’s FY26 core EPS estimate by 8 percent, reflecting higher interest expenses from debt raised by RWNYC to fund the license fee and initial capital expenditure.
The brokerage noted that contributions from new table games in FY26 are likely to be limited, given the half-year operating period and the initial deployment of 250 tables out of a planned total of 800.
By contrast, CIMB Securities raised its FY27 core EPS estimate by 25 percent, citing a full-year contribution from table game operations and a planned increase in gaming capacity to 400 tables by January 2027. Following these revisions, Genting Malaysia’s core EPS is expected to decline marginally by 1 percent year-on-year in FY26, before rebounding by 39 percent in FY27.
Reflecting the improved medium-term earnings outlook, CIMB Securities raised its target price for Genting Malaysia to MYR2.70 ($0.61), representing a 6 percent increase. The brokerage said the higher valuation factors in the anticipated earnings uplift from RWNYC’s commercial casino operations, partly offset by more conservative assumptions on debt reduction at Empire Resorts, amid potential delays in divesting non-gaming assets at Resorts World Catskills.
CIMB Securities also cautioned that Genting Malaysia’s share price may take time to re-rate, as investors could remain cautious until stronger core EPS growth becomes visible in FY27. In addition, the brokerage expects the group to maintain a zero dividend payout from FY25 to FY27, as cash is likely to be conserved for debt reduction and to partially fund RWNYC’s expansion.
Over the medium term, CIMB Securities expects RWNYC’s EBITDA to rebound strongly from FY27 onward, supported by a full-year contribution from table games and a gradual ramp-up in gaming capacity.
