Genting Malaysia says Genting SkyWorlds preparations underway; health, safety key priorities as Covid-19 lingers

KUALA LUMPUR (Jan 21): Genting Malaysia Bhd (GENM) said "preparations are underway" for the opening of the Genting SkyWorlds outdoor theme park at Resorts World Genting (RWG), a key growth initiative for the casino and hotel in Malaysia and that the health and safety of guests, employees and the community remain key priorities amid lingering Covid-19 pandemic concerns.

In GENM’s latest corporate presentation, the group said RWG reopened to positive response since Sept 30, 2021.

On RWG, GENM said it plans to "ramp up operational capacity by leveraging existing assets to meet increasing demand and optimise cost base to drive productivity and efficiency”.

GENM however did not specify when Genting SkyWorlds will be opened to the public.

Affin Hwang Investment Bank Bhd expects Genting SkyWorlds to be opened in the first quarter of 2022 (1Q22).

In a note on Friday (Jan 21), Affin Hwang analyst Ng Chi Hoong said that although the research house believes that there is a high likelihood that GENM's new Genting SkyWorlds outdoor theme park will be opened to the public in 1Q22, Affin Hwang does not expect Genting SkyWorlds’ opening to be a re-rating catalyst for GENM shares.

Ng said this is because most analysts and investors would have already factored in the effect from the Genting SkyWorlds’ opening in their estimates for GENM shares.

"As the park would be operating at a capped capacity below its 20,000 visitors/day capacity due to social distancing requirement, the park would be operating at a loss, based on our forecast. 

"As such, the impact from the increased overall visitation might be limited, but it would help raise the average spend per visitation,” Ng said.

GENM’s share price settled unchanged at RM2.84 at the 12.30pm break on Bursa Malaysia on Friday, with a market value of about RM16.05 billion.

The company has 5.65 billion issued shares, according to its latest quarterly financial report.

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