Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
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:
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.
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).
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.
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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