Latest news with #DisneyAdventureCruiseShip
The Star
08-08-2025
- Business
- The Star
Genting poised to ride recovery and upside
PETALING JAYA: Genting Bhd is poised to benefit from the continued earnings recovery of its key subsidiaries, Genting Malaysia Bhd (GenM) and Genting Singapore Ltd (GenS), supported by stronger tourist arrivals in Malaysia and Singapore. According to Hong Leong Investment Bank (HLIB) Research, the recovery in both countries will be largely underpinned by improving travel flows from key Asia-Pacific source markets. In Singapore, the momentum will be further reinforced by the rollout of high-profile attractions such as Illumination's Minion Land, Mandai's Rainforest Wild Asia and the Disney Adventure Cruise Ship. Meanwhile, Malaysia stands to benefit from its official assumption of the Asean Chairmanship in 2025. During this period, Malaysia will host over 300 related meetings, programmes and summits throughout 2025. This momentum will continue into Visit Malaysia Year 2026, said the research house. Some notable development to monitor in the second half of the year is the much-anticipated Resorts World New York City (RWNYC)'s bid for a full-scale commercial casino licence in downtown New York. Currently operating with more than 6,500 video lottery terminals and electronic table games, RWNYC, which is an indirect wholly-owned subsidiary of GentM, must secure one of the three available licences to offer Las Vegas-style slot machines and table games. On June 27, RWNYC officially submitted its proposal to the New York State Gaming Commission, competing against seven other bidders, with the three winners to be selected on Dec 1, 2025. RWNYC plans a capital expenditure of US$5.5bil to transform itself into a world-class integrated resort by 2030 – featuring 6,000 slot machines, 800 gaming tables, 2,000 hotel rooms and a wide range of lifestyle and entertainment offerings. 'According to RWNYC's proposal, gross gaming revenue is projected to more than double by 2027. 'Based on our estimates, securing the full casino licence could unlock RM0.31 per share in additional value for GenM. 'We believe its potential could be interesting, as many New York City residents currently travel out-of-state for table gaming. But to be conservative, we will only incorporate the uplift into our target price upon a successful bid outcome,' HLIB Research said in a report. Coming to the number forecast operator ( O), the research firm expects Sports Toto Bhd 's O segment to deliver stable revenue growth, supported by a growing population and rising household income. On the other hand, the outlook for Sports Toto's UK-based luxury car distribution arm, H.R. Owen Plc, would remain challenging because sales volumes in the high-end automotive segment are likely to be weighed down by the continued outflow of high-net-worth individuals from the United Kingdom and persistently high interest rates. 'Separately, we note some investor unease following Sports Toto's recent related-party transaction in late June 2025 involving the acquisition of three freehold commercial units at Berjaya Times Square, which has raised concerns around the group's capital allocation discipline. 'Hence, we take this opportunity to lower the target price-earnings multiple on the group to 8.5 times (previously 10 times on average), resulting in a lower target price of RM1.39 (from RM1.60) and a downgrade to hold. 'While HLIB Research maintains a 'neutral' stance on the gaming sector, its preferred stock pick is Genting, which it has a 'buy' call on and a target price of RM4.44.' It said the stock is strategically positioned to capitalise on the recovery momentum of both GenS and GenM, as well as the potential value-add from 20%-owned associate TauRx Pharmaceutical once the latter's Alzheimer's drug, HMTM, receives approval from the US Food and Drug Administration.
The Star
16-05-2025
- Business
- The Star
Genting Singapore likely to see better 2H
HLIB Research said it expects GenS to deliver a relatively weaker first half before regaining traction in the second half of the year. KUALA LUMPUR: Genting Singapore Ltd (GenS) may see a weaker first half in 2025 before potentially regaining traction in the second half of this year. This is because of the lower VIP rolling win rate, as well as the temporary closure of Hard Rock Hotel for renovation and rebranding work that had impacted its first-quarter bottomlines. Also, according to Hong Leong Investment Bank Research (HLIB Research), GenS' management had indicated that operating expenses are expected to rise in the first half due to preparations for the hotel's reopening and rebranding as well as the S.E.A. Aquarium which will be closed for 2.5 months in the first half. 'All in, we expect GenS to deliver a relatively weaker first half before regaining traction in the second half of the year,' it said. GenS is majority 52.5% owned by Genting Bhd . HLIB Research said tourist arrivals into Singapore will be supported by the various entertainment events such as the upcoming Lady Gaga concert and attractions. These also include Universal Studios Singapore's new themed zone called Illumination's Minion Land, Mandai Rainforest Wild Asia, and Disney Adventure Cruise Ship; and the mutual 30-day visa exemption between Singapore and China. GenS plans to launch The Laurus, an all-suite luxury hotel that was rebranded from Hard Rock Hotel and the Singapore Oceanarium by the third quarter of this year, it said. It maintained a 'buy' call on GenS with a lower target price of S$1.10 from S$1.22, based on the financial year 2025's (FY25) enterprise value to earnings before interest, taxes, depreciation and amortisation multiples of nine times that is at parity to its three-year, pre-lockdown average. 'We continue to like GenS for its undemanding valuation and attractive FY25 projected dividend yields of 6.1%,' it said. While recent results were below HLIB Research's expectations, it was in-line with Maybank Investment Bank Research's (Maybank IB) projections. 'From the third quarter, we expect operations to be stronger, thanks largely to the opening of The Laurus hotel that will house more VIP and premium mass players,' Maybank IB said. 'Going into the second quarter, we expect operations to be seasonally slower after the Chinese New Year festival in the first quarter. 'We do not get the feeling from management that the short-lived trade war between the United States and China had a marked impact on VIP volumes in the second quarter,' it added. Meanwhile, it also highlighted Tan Hee Teck, the chief executive officer (CEO) of GenS and Resorts World Singapore, will fully retire by Nov 30, 2025. Tan Sri Lim Kok Thay, who is presently the executive chairman of GenS will assume the role of acting CEO from June 1, 2025 while also retaining his role as executive chairman. Maybank IB maintained its earnings estimates, 'buy' call and S$1.01 discounted cashflow target price, noting that the market is presently discounting its huge net cash pile.
