KUALA LUMPUR (May 29): AllianceDBS Research has maintained its “Hold” rating on Genting Malaysia Bhd (GenM) with a target price of RM4.10 and said the gaming company’s 1QFY15 earnings came within expectation.

In a note today, AllianceDBS Research vice president for equity Cheah King Yoong said GenM’s core net profit came in at RM378 million (+5% y-o-y, -8% q-o-q), or 28% and 26% of his and consensus’ full year estimates, respectively.

“This is within expectations since we expect consumer spending to slow down in upcoming quarters after implementation of Goods & Services Tax (GST) in April.

“Despite improving prospects with the successful execution of Genting Integrated Tourism Plan, we are cautious that the group’s near term earnings will be dragged by weaker consumer sentiment post-implementation of GST,” he said.