“We think this will improve in 2H 2022F due to the opening of more rides (only 75% open now), pent-up demand as COVID-19 worries abate (April 12’s new cases are 73% off the March 5 peak) and promotional campaigns,” reckoned the research house.

Its re-rating catalysts include FY2022F earnings recovery and RWNYC winning a full casino licence while the downside risk is further COVID-19-led resort closures.īack home, CGS-CIMB Research observed that visitors to GENM’s Resorts World Genting’s (RWG) SkyWorlds Theme Park have been slower than expected since its soft opening on Feb 8. In view of the bright prospect, the research house has reiterated its “add” rating on GENM with an unchanged sum-of-parts (SOP)-based target price of RM3.40. “We think occupancy rate (4Q 2021: 37%) at its new Hyatt Regency hotel (opened in August 2021) will rise in FY2022F as passenger traffic at the JFK International Airport (4km away) recovers further (up 2.2 times yoy in February but still below February 2019’s by 26%),” projected CGS-CIMB Research. “If it wins, we see extra net profit of RM274 mil from RWNYC in FY2026F (higher in FY2023-2025F before a third casino opens), thus enhancing GENM’s equity fair value by 44-51 sen/share.”Īs per the New York State Gaming Commission, RWNYC’s 1Q 2022 gross gaming revenue rose 18% year-on-year (yoy) (-2% quarter-on-quarter) and is now a mere 3% shy of 1Q 2019’s.

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