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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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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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