KUALA LUMPUR (March 1): Hong Leong Investment Bank (HLIB) Research has maintained its “buy” rating on Genting Bhd at RM4.77 with a higher target price (TP) of RM7.12 (from RM6.96) and said the gaming group recorded 4Q2023 core profit after tax and minority interest (Patami) of RM414.3 million (-35.5% q-o-q, -5.5% y-o-y), bringing FY2023's core Patami to RM1.58 billion (+2.3x y-o-y).

In a note on Friday, the research house said the performance exceeded both house (108%) and consensus (+129%) estimates.

It said the positive deviation was due to stronger-than-expected topline.

“On a full year basis, Genting’s performance continued to benefit from the overall increase in business volumes as international travel gradually recovers.

“We adjust our FY24-25f forecasts upwards by 3-6% as we raise our revenue assumption and project a narrower loss from its JV and associate.

“Maintain Buy on Genting, with a higher SOP-derived TP of RM7.12 (from RM6.96),” it said.

HLIB said Genting is on track for sustained recovery momentum, with multiple factors in play contributing to its positive outlook.

It said the group is expected to benefit from the continued recovery in foreign visitations at both Resorts World Genting and Resorts World Sentosa, driven by increasing frequencies of global flights (particularly outbound flights from China), as well as the visa-free travel pact between China and both Malaysia and Singapore.

“Additionally, spill-over benefits are anticipated for RWS from a series of prominent music concerts scheduled in Singapore in late 2023 and 2024.

“Furthermore, the performance of Resorts World Las Vegas is projected to be underpinned by the growth in convention visitations and major events in Las Vegas,” it said.