KUALA LUMPUR (July 30): Genting Malaysia Bhd (KL:GENM) may report a net loss in what could turn out to be an unusually weak second quarter for the casino-and-resort operator, an analyst flagged.

While April-June are seasonally weak months, the Iran war may have dented both premium and mass market gaming at its flagship resort in Genting Highlands, as well as discouraged Middle Easterners and transit gamblers from its London clubs, Maybank Investment Bank said.

The Fifa World Cup that began mid-June may also have diverted gaming spend, the research house said in a note ahead of its earnings report expected in the final days of August.

Shares of Genting Malaysia have declined close to 10% year-to-date and are approaching this year’s lows in March, as the Iran war dragged into the sixth month and widened in the Middle East. Oil prices have surged, raising the cost of transportation while dragging on travel demand.

Genting Malaysia has seven “buy” and seven “hold” calls among 14 research houses tracked by Bloomberg. The 12-month average target price stood at RM2.34 per share.

Maybank Investment cut its target price to RM2.82, after slashing its earnings forecast but kept its “buy” call on the stock. “We believe these headwinds could be temporary,” the research house said.

Further, table games at its New York City facility have performed better than expected as operations ramp up, resulting in higher gross gaming revenue for Genting Malaysia, the house noted.

By 2027, the entire US operations could account for more than one-third of Genting Malaysia’s operating earnings, an increase of 20 percentage-points from 2025, according to Maybank Investment’s estimates.

“It is this earnings growth that compels us to maintain our buy rating,” the house added.