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Resorts World Genting expects decline in visitors amid MCO

KUALA LUMPUR (Jan 13): Genting Malaysia Bhd’s Resorts World Genting (RWG) yesterday issued a notice that it anticipates a decline in number of visitors following the implementation of the Movement Control Order (MCO), Conditional MCO (CMCO) and Recovery MCO (RMCO).

It said it will be operating at a lower capacity and that some of its offerings may not be available from Jan 13, 2021.

“Some of our hotels, facilities, attractions and other offerings will be subjected to revised operating hours, limited availability or temporary closure. Kindly visit our website regularly for further information,” said RWG.

Guests who are affected may contact RWG’s call centre at 03-27181118 or write to [email protected] to request a change of date or refund, it said.

Meanwhile, CGS-CIMB Research said it expects a plunge in visitor arrivals due to the reimposition of the MCO in six states.

The research house had cut its FY21 core EPS forecast for Genting Malaysia, after taking into account a potential two-month MCO amid the high number of cases in the nation.

It said every extra month of MCO beyond its two-month base-case assumption will reduce Genting Malaysia’s FY21 core net profit by RM144 million and its fair value by two sen.

“RWG casino volumes may fully recover to pre-Covid-19 levels in 2H21 aided by tourism incentives and SkyWorlds’ opening. We see FY21 core net profit rebounding to RM275 million and quadrupling to RM1.2 billion in FY22 as Covid-19 subsides,” wrote analyst Foong Choong Chen.

Accordingly, the analyst trimmed his target price on the counter by 2% to RM2.90, but maintained an “add” call.

“Full recovery of casino volumes post-Covid-19 is not fully priced in, and is a re-rating catalyst in our view,” added Foong.

At 11.50am, Genting Malaysia rose four sen or 1.7% to RM2.47, giving a market capitalisation of RM14.67 billion.

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