Maybank raises Genting earnings estimates after strong Q3 performance

Analysts have raised earnings estimates by 37 per cent.

Malaysia.- Analysts at Maybank Investment Bank have revised upward earnings estimates for Genting Berhad, citing a robust performance in the third quarter of 2023. Analyst Samuel Shao Yang Yin increased his earnings forecast for the current year by 37 per cent, with increments of 15 per cent and 11 per cent for fiscal years 2024 and 2025, respectively. 

The key driver was the better-than-expected performance of the Resorts World Sentosa (RWS) VIP segment and contributions from Meizhou Wan. Genting Berhad’s third-quarter core net profit reached MYR519.8m (US$111m), marking a 203 per cent annual improvement and a 119 per cent quarterly increase. 

This was attributed to a 35 per cent quarter-to-quarter increase in RWS VIP gross gaming revenue. Resorts World Las Vegas (RWLV) recorded a EBITDA high of US$52m in the third quarter of the year. 

Analysts noted a shift in the mass market mix, expanding margins, but cautioned on the persistent challenge of bad debts, primarily from Chinese VIPs. 

See also: Fitch Ratings says Genting Malaysia outlook remains stable