Profit-taking has dragged down the value of Genting Malaysia's stock

[ASEAN NOW Content Team]

 

Genting Malaysia Bhd's stock fell in early trade on Thursday, as investors profited from previous gains.

At 9.14 a.m., the gaming and recreation category was down three sen, or 0.94 percent, to RM3.17.
Yesterday, at RM3.20, it reached its highest level in in seven months.

Genting Malaysia announced earlier this week that it would inject additional US$150 million into its Empire Resorts Inc (ER) arm in the United States, mostly to cover short-term obligations.

Genting Malaysia announced on Monday (October 11) that its indirect wholly-owned subsidiary Genting ER II LLC has entered into an agreement to subscribe for up to US$150 million in additional Empire Series L Preferred Stock.

 

Given ER's high debt levels and the low impact on Genting Malaysia's balance sheet, RHB Research is neutral on Genting Malaysia's capital injection.

 

"With Resorts World Genting (RWG) reopening and the interstate travel prohibition lifted, we predict robust earnings recovery in the near future."

"The upcoming inauguration of Genting Skyworlds outdoor theme park may serve as a crowd-puller for other RWG facilities, resulting in higher-than-expected tourist arrivals," the company added.

RHB has lifted its target price for Genting Malaysia to RM3.58 from RM3.40, maintaining its "buy" call.