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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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Visits to Resorts World Genting Still Below Pre-Pandemic Levels Despite Revenue Growth

Visits to Genting Bhd's Resorts World Genting (RWG) have not yet returned to pre-pandemic levels, despite a stronger second-quarter performance, according to Phillip Capital. Revenue for the second quarter of FY2024 (2QFY2024) grew by 3%, and core net profit rose 15% year-on-year (y-o-y), supported by an increase in tourist visitations due to visa-free travel.

Key Takeaways:

  1. Growth in Revenue and Profit: RWG saw hilltop visitations reach 5.9 million in 2QFY2024, an 11% y-o-y increase, with a significant number of tourists from Singapore. In the US, Resorts World Las Vegas recorded revenue of $218 million and EBITDA of $50 million. Overall, Genting’s EBITDA for 2QFY2024 rose 10% y-o-y, with an improved EBITDA margin due to reduced losses in investments.

  2. Improved Financial Performance: For the first half of FY2024, Genting's core net profit, excluding impairment and fair value losses, increased by 145% y-o-y to RM884 million, reaching 52% of Phillip Capital's full-year forecast. Revenue for the same period was RM14.3 billion, up 15% y-o-y, driven by stronger performances from Genting Singapore (+26% y-o-y) and Genting Malaysia (+14% y-o-y).

  3. Valuation and Outlook: Phillip Capital maintained a 'buy' rating for Genting, with a target price of RM5.90, despite slightly lowering its FY2024-FY2026 earnings per share estimates by 2%-3%. The stock trades at a favorable valuation of five times FY2025 enterprise value/EBITDA, suggesting it is undervalued.

  4. Potential Upside and Risks: Successful commercialization and listing of TauRx could provide further upside. However, risks include lower-than-expected win rates, rising operational costs, and potential declines in both gaming and non-gaming revenue.

While RWG continues to recover from the pandemic, the pace remains moderate, and further growth may depend on external factors such as tourism and global economic conditions.

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