NEW YORK: Gaming group Genting, whose shares have outperformed the Malaysian stock market this year, is undervalued and its stock should keep rising despite concerns about its casino operations, Barron’s said.
The company — which also operates palm oil plantations, develops and manages property, and is in the paper, oil-and-gas, financial services, and tourism business — has seen its stock soar 57 per cent this year to RM5.80, outperforming the Malaysia index.
However, the group’s first-quarter net profit fell almost 50 per cent, hurt by weaker revenue at its casinos in Britain and by lower plantation earnings.Genting has said that a lower-than-expected power tariff rise in China and an expected surge in costs for its new casino in Singapore will also weigh on future earnings, raising investors’ concerns.
But the company — with a market value of about US$6 billion — is worth more given the growth outlook of Asia, Barron’s said, citing David Winters, manager of Wintergreen Fund.“This is one of the great Asian success stories,” Winters said, quoted by the business weekly publication in its July 6 edition.Genting is the only casino licence holder in Malaysia, and is building a casino resort in neighboring Singapore. -- Reuters
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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