KUALA LUMPUR: The outlook for the rest of 2H18 remains positive for Genting Malaysia Bhd
despite the likely delays of both theme parks, said RHB Research.
Visitor count to the hill top increased by 21% year-on-year (y-o-y) to 12.8 million as of June, due to the new facilities opened under the Genting Integrated Transformation Plan (GITP) that include the SkyCasino, SkyAvenue mall and Awana Skyway cable car.
The research house said it continues to anticipate a sturdy 2H18, as the improved facilities and amenities gain traction amongst visitors.
It revised its visitor arrival assumptions to factor in the delay in both theme park openings and cut its earnings for FY18 marginally, but lifted FY19-FY20 estimates by 3.2%.
Key risks to its call include fluctuations in luck factor and further delays in the completion of the theme parks.
The research house maintained its Buy call on the counter with an unchanged target price of RM6.12, a 24% upside.
“While there could be some investor disappointment over the persistent theme park delays, we advise investors to accumulate the stock as we continue to see the opening of its 20th Century Fox outdoor theme park as a major visitation re-rating catalyst.
“Although the theme park alone will not contribute significantly to earnings, its family appeal should spur patronage to the hilltop and boost earnings visibility,” it added.