Genting Bhd, Asia’s biggest listed casino operator, rose the most in six weeks after CIMB Investment Bank Bhd raised its share forecast on earnings prospects from its unit’s new gaming resort in Singapore.
The shares climbed 2.3 per cent to RM7.56 at the midday break in Kuala Lumpur, set for the largest gain since December 2. It’s the second-best performer on the benchmark FTSE Bursa Malaysia KLCI Index today. CIMB raised its forecast for the shares to RM10 from RM9.70 with an “outperform” rating.
Genting will benefit from the “potentially explosive earnings growth” at its Genting Singapore Plc unit, which will partly open its US$4.5 billion Resorts World Sentosa gaming development on January 20, CIMB analyst Soh May Yee said in a report today. Resorts World, which includes a Universal Studios theme park, is opening its hotels after visitor arrivals in the city-state jumped the most in three years.
The “novelty effect” of the Singapore casino resort should spill over to the Malaysian parent, she said. Genting remains the “cheaper indirect play” on the city-state’s efforts to build a tourism hub.
Las Vegas Sands Corp, which is building the other Singapore casino resort, expects to the project to open in April. That means Genting’s Resorts World will remain the only gaming development in Singapore for at least the first quarter, CIMB’s Soh said.
“Newsflow from Singapore’s first integrated resort has been largely positive and should escalate as its opening approaches,” she said.
The casino resort started taking room and restaurant reservations for its first four hotels on January 11. The casino will be opened once the company gets its casino license, the Singapore unit said on January 5. -- Bloomberg
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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