Saturday 22 Jun 2024
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KUALA LUMPUR (April 14): CGS-CIMB Research has maintained its “add” call on Genting Malaysia Bhd (GenM) at RM2.97 with an unchanged target price of RM3.40 and said GenM’s Resorts World New York City (RWNYC) may win a full casino licence soon.

In a note on Thursday (April 14), the research house said RWNYC may have an edge as it will be able to quickly generate more gaming taxes/create new jobs for the state (versus three to four years for a new casino resort), and it already had community support/siting approvals.

“If it wins, we see extra net profit of RM274 million from RWNYC for the financial year ending Dec 31, 2026 (FY26) (higher than for FY23-25, before a third casino opens), enhancing GenM’s equity fair value by 44-51 sen/share,” CGS-CIMB added.

At 9.20am on Thursday, GenM was unchanged at RM2.97, valuing it at RM17.64 billion.

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