Genting Malaysia is now expected to report a loss this year due to the ongoing disruptions from Covid, but the earnings recovery momentum is intact, Maybank Research said in a note maintaining its “buy” rating and increasing its target share price.
The firm forecasts a core net loss for the year of MYR384.8 million ($93.3 million), compared with its estimate for a profit of MYR137.9 million previously. It has increased the share price target by 8 percent by MYR3.43.
“With the recent surge in new COVID-19 cases in Malaysia, we do not believe that the inter-state travel ban in Malaysia will be lifted soon,” the note said, explaining that 77 percent of FY20A Resorts World Genting visitors were day-trippers, with the great majority from the neighbouring state of Selangor and Federal Territory of Kuala Lumpur.
