KUALA LUMPUR, Aug 17 ― Maybank Investment Bank (Maybank IB) is widening its forecast core net loss for Genting Malaysia Bhd in the financial year ending December 31, 2021 (FY21) by 52 per cent on the delay of Resorts World Genting (RWG) reopening to November amid the recent surge of Covid-19 cases.
In a research note today, the investment bank said the net loss prediction was made in line with its estimate to reduce RWG visitor arrivals to 5.0 million from 8.5 million.
Maybank IB had initially predicted a resumption of RWG’s operations in June 2021 and the new timeline for reopening would coincide with the expectation that Malaysia would achieve herd immunity in October this year.
However, it maintained that Genting SkyWorlds would be opened in December 2021 to coincide with school holidays
“Our investment thesis of Covid-19 vaccination led recovery remains intact as Malaysia is expected to achieve herd immunity by October 2021 as Covid-19 vaccinations have surged to more than 400,000 per day.
“At this rate, the government expects Malaysia to achieve herd immunity by October 2021. Thus, we hope that Malaysians will return to RWG in droves after that,” said Maybank IB.
It retained its forecasts of the resort operator’s core net profits for financial years 2022 and 2023 based on unchanged RWG visitor arrivals of 24.2 million and 26.2 million, respectively, for those years.
The investment bank maintained a “buy” call on Genting Malaysia with a two per cent lower 12-month target price of RM3.32.
As at 10.25am, Genting Malaysia gained two sen to RM2.85. ― Bernama