KUALA LUMPUR, Dec 30 — RHB Research says Malaysia’s gaming sector in 2014 will see “relatively unexciting growth prospects” compared to its Macau peers.
The research house forecasts the sector’s earnings growth to be around 5.6 per cent for 2014 and 6.7 per cent for 2015, against consensus projections for Macau’s casino operators at 22.4 per cent for next year and 17.8 per cent for 2015.
“The sturdier growth in Macau’s gaming market is mainly underpinned by the continued influx of visitors from China in tandem with the domestic economy’s expansion,” the research firm said in a note today.
Growth-seeking investors are likely to increase their exposure in Macau’s gaming market, while staying away from Malaysia-listed gaming stocks for now, RHB Research said.
RHB Research maintains “neutral” on the sector for 2014 by only rating “buy” on Berjaya Sports Toto Bhd, thanks to its appealing dividend yield of 6.3-6.9 per cent.
It said it was too early to quantify the potential earnings accretion of Genting Malaysia Bhd’s proposed RM5 billion capital expenditure to rejuvenate its flagship Genting Highlands Resorts over the next 10 years.
“This is because the first phase of the proposed facelift will only be completed by the second half of 2015, the research house added. — Bernama
