Brokerage CGS-CIMB says Genting Malaysia Bhd’s fair value may rise 8 to 14 percent if its New York City casino license bid succeeds.
According to reports, CGS-CIMB research issued an investment memo on Wednesday noting that, should its wholly-owned subsidiary Resorts World New York City (RWNYC) win the gaming license, the minimum required capital of $1 billion could be funded by the potential sales proceeds of its Miami land, for which it has received an offer in excess of $1.23 billion.
The brokerage points out that Genting Malaysia Bhd‘s operating capacity is almost returning to pre-COVID levels, so now it’s about to see the return of visitors.
Early last week, analysts at Maybank had a similar conclusion, saying that the new momentum in the US is proving highly beneficial for Genting Malaysia Bhd.
The New York State Gaming Commission (NYSGC) finally resumed the process of the commercial license bid on August 30th, after more than six months of silence.
Maybank points out: ‘we have long viewed Genting Malaysia’s RWNYC to win 1 as it can deploy table games and generate additional tax revenue for New York State quickly, thanks to its existing infrastructure’.
According to the financial results, Genting Berhad has seen a 14 percent growth in revenue in 1H23, totaling RM2.47 billion ($531 million), despite adjusted EBITDA falling by 28 percent to RM447.9 million ($96.43 million).