GENM (4715) : Genting Malaysia is CIMB Research’s top pick in gaming sector
KUALA LUMPUR: CIMB Equities Research is keeping Genting Malaysia as its top pick in the gaming sector.
The research house said on Friday investors should take advantage of the recent price dip to accumulate the stock ahead of a potential New York casino decision on Dec 17.
“In 2015, we expect more positive newsflow on Genting Integrated Tourism Plan (GITP) developments to drive Genting Malaysia’s re-rating,” it said.
To recap, it said several newswires reported that a decision on the four NY upstate casinos could be announced on Dec 17, when the final meeting of the board that is reviewing the applications is scheduled.
On Thursday, Genting Malaysia unveiled the blue print of its Sky Avenue and Sky Plaza, a 400,000 sq. ft open-sky concept offering retail and dining, scheduled for launch in 2015.
The research house estimated that this would increase its existing F&B space seven fold.
CIMB Research said the impact on EPS is negligible but the main benefit, combined with the opening of Genting Premium Outlets in Awana (by end-2015) and theme park (in early 2016), should drive strong visitation, and by extension, casino visitation and revenues.
“Genting Malaysia expects to increase annual visitation from 20 million in 2014 to 30 million by 2020. We maintain our FY14-16 forecasts, RNAV-based target price and Add rating. The potential re-rating catalysts are a New York casino win and newsflow on GITP updates,” it said.
http://www.thestar.com.my
KUALA LUMPUR: CIMB Equities Research is keeping Genting Malaysia as its top pick in the gaming sector.
The research house said on Friday investors should take advantage of the recent price dip to accumulate the stock ahead of a potential New York casino decision on Dec 17.
“In 2015, we expect more positive newsflow on Genting Integrated Tourism Plan (GITP) developments to drive Genting Malaysia’s re-rating,” it said.
To recap, it said several newswires reported that a decision on the four NY upstate casinos could be announced on Dec 17, when the final meeting of the board that is reviewing the applications is scheduled.
On Thursday, Genting Malaysia unveiled the blue print of its Sky Avenue and Sky Plaza, a 400,000 sq. ft open-sky concept offering retail and dining, scheduled for launch in 2015.
The research house estimated that this would increase its existing F&B space seven fold.
CIMB Research said the impact on EPS is negligible but the main benefit, combined with the opening of Genting Premium Outlets in Awana (by end-2015) and theme park (in early 2016), should drive strong visitation, and by extension, casino visitation and revenues.
“Genting Malaysia expects to increase annual visitation from 20 million in 2014 to 30 million by 2020. We maintain our FY14-16 forecasts, RNAV-based target price and Add rating. The potential re-rating catalysts are a New York casino win and newsflow on GITP updates,” it said.
http://www.thestar.com.my
