Malaysian gaming sector to rebound in H2, analysts say

Malaysia’s gaming sector is expected to be boosted by increased tourism.

Malaysia.- Hong Leong Investment Bank (HLIB) has anticipated strong performance for the Malaysian gaming sector during the second half of 2023. Citing a rise in tourist numbers and an anticipated decline in regulatory concerns, HLIB believes that a return to pre-pandemic levels is within reach but may require additional time.

The bank said Genting shares, currently trading at a discounted RM6.70 (US$1.43) were undervalued. It projected a strong performance for Genting’s Resorts World Las Vegas, buoyed by the upcoming summer holidays and the F1 Las Vegas Grand Prix.

While investor concerns regarding regulatory risks persist due to upcoming state elections, HLIB predicted a recovery once these uncertainties are resolved. Analysts said that if the group’s operations remain stable post-state election, stock prices are likely to rebound.