Genting Skyworlds opening will accelerate GenM business recovery - RHB research

KUALA LUMPUR - The opening of Genting Skyworlds (GS) will accelerate Genting Malaysia Bhd's (GenM) business recovery trend as it is expected to be a crowd puller, provide new income stream and benefitting other facilities within Resorts World Genting (RWG).

RHB Research, in a note, said the imminent opening of GS on Feb 8, 2022 will create excitement among visitors and can potentially lead to higher footfall to RWG.

"The theme park will likely operate at a 50 per cent capacity or 20,000 visitors initially due to the standard operating procedure in place. "Assuming 10,000 visitors a day, we estimate the theme park alone could contribute an annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) of RM210 million to RM290 million," it said.

RHB Research has maintained its 'Buy' call for GenM with a target price of RM3.58 as it is a direct beneficiary of tourism recovery play.

As at 11.50 am, GenM shares rose one sen to RM2.80 with 2.12 million shares traded.

Meanwhile, RHB Research opined that Genting Hong Kong’s (GenHK) recent announcement on potential cross defaults will unlikely affect GenM as it does not have any holdings in GenHK.

"Its minority shareholders are likely to reject any potential proposal that is related to the bailing out of GenHK," it added. - BERNAMA