Empire Resorts must secure financing at attractive rates soon if it is to turn profitable and avoid the need for a further capital injection from Genting, Nomura said in a research note.
The firm said it has built in associate losses of MYR238 million into its forecasts for Genting Malaysia this year due to its share of losses from Empire. The Malaysian company was forced to inject a further $20 million into the U.S. company on Friday.
Despite the Empire losses, Nomura said it retains its buy on Genting Malaysia.
“We believe investors will overlook near-term bumpy earnings, and are looking through to FY22F prospects, which look promising for Malaysia with the Skyworlds theme park scheduled to open (official guidance: mid-2021), vaccines expected to be widely available by end-2021 in Malaysia, the UK and the US (key markets), and start of some inbound tourism.”