KUALA LUMPUR (Dec 3): Genting Malaysia Bhd’s (KL:GENM) share price extended its decline on Wednesday, as market optimism over its potential first-mover advantage in securing a downstate New York casino licence was offset by renewed concerns about a possible ratings downgrade at the group level.
CreditSights, a Fitch Solutions unit, said parent Genting Bhd (KL:GENTING) and Genting Malaysia face heightened risks of rating downgrades due to Genting’s high leverage and weak cash flow.
Based on Genting’s pro-forma results for the first nine months of 2025 (9M2025), the group breached downgrade trigger thresholds for cash flow, leverage, and earnings before interest, taxes, depreciation, and amortisation (Ebitda) at both Moody’s and Fitch, it said. Genting’s takeover bid for Genting Malaysia has raised its holdings in the company to 73.133%.
The stock slipped as much as 3.1% to RM2.18 shortly after the opening bell, before paring losses to settle at RM2.19 at the closing bell — making it among the top 20 losers by value on the local bourse.
At RM2.19, the gaming group had a market capitalisation of RM13 billion.
TA Research and Hong Leong Investment Bank (HLIB) Research raised their earnings forecasts for Genting Malaysia on expectations of stronger contributions from Resorts World New York City (RWNYC).
HLIB forecast core earnings of RM620.3 million for the financial year ending Dec 31, 2026 (FY2026), up 21.3% from FY2025, and projected FY2027 core earnings of RM735.2 million (+23.7%). The research house maintained its 'hold' rating with an unchanged target price (TP) of RM2.35.
TA Research expects Genting Malaysia’s net profit to rise 10.7% to RM986.2 million in FY2026, and a further 15.6% to RM1.08 billion in FY2027. It kept its 'buy' call with a TP of RM3.06.
The firm said RWNYC’s location — supported by a large Queens population and strong tourist traffic — provides Genting Malaysia early table-game advantages, while helping diversify earnings away from Malaysia, which still accounts for the bulk of revenue and Ebitda.
CIMB Securities, however, flagged that the New York Gaming Facility Location Board has yet to finalise critical licensing terms, including the licence duration, approved gaming capacity and tax rates. Regulators have also recommended reducing Genting’s proposed 6,000 slot machines and 800 table games to 4,635 slots and 534 tables. CIMB maintained its 'hold' call with a TP of RM2.55.
Still, RWNYC could begin offering live table games as early as mid-2026, potentially capturing the entire table-games gross gaming revenue pool from 2026 to 2030, CIMB said. Table rollout is expected to start with 250 tables in 2026, before expanding to 800 by 2029.
Genting New York LLC has proposed a US$5.5 billion (RM23.2 billion) upgrade of RWNYC, featuring a 500,000 sq ft gaming floor, 6,000 slots, 800 tables, 2,000 hotel rooms, a 7,000-seat arena, and more than 7,000 parking bays.
The New York gaming board has chosen the company to advance to the final licensing review stage with the New York State Gaming Commission. Licences are to be issued by Dec 31, 2025.