$GENM (4715.MY)$ [Share Link: Genting Group - Malaysia Leadi...

丰衣足食 commented on a stock · 18 hours ago

Genting Group - Malaysia Leading Corporation

-Top Malaysian Stocks Poised for Explosive Growth and Dividends in 2025: Don’t Miss These Opportunities! – Minichart

- Technical Highlights

Due to the lack of strong new catalysts, since May, the stock has been in a downtrend. Yesterday, a surge in buying volume pushed up the stock, breaking out of the previously consolidated triangular pattern. This breakout also saw the stock trading above the 20-day moving average, indicating short-term bullish momentum. We expect bargain hunting activities to pick up momentum after the stock is removed from the FBM KLCI index and fund managers recently rebalance their portfolios.

Momentum indicators support positive prospects. The RSI looks strong and accelerating, signaling a revival in trading interest. Meanwhile, the rising MACD line confirms the accumulation of bullish momentum in the stock.

For an ideal entry point, it can be set within the range of RM2.13 and RM2.15. The first resistance to watch is at RM2.18. A breakthrough above this level could see the stock challenging its subsequent resistance at RM2.30. Conversely, if the stock moves downwards, approaching and falling below RM2.05, it could signify a false pattern breakout, potentially leading to a retreat to RM1.95.

Entry - RM2.13 - RM2.15

Stop Loss - RM1.98

Target Price - RM2.18 - RM2.30

Source: Mercury Securities Research - December 24, 2024

Philip Capital Research stated that they expect the earnings of Malaysia's cloud to increase by 18%.

PETALING JAYA: The recovery momentum of Malaysia Casino stocks' earnings will be the focus for investors entering 2025, with expectations of a rebound in Chinese tourists and obtaining full casino licenses in the USA and Thailand.

Philip Capital Research has consistently called for an 'overweight' rating on casino stocks, with the key catalyst for reevaluating these stocks being the strong revenue recovery driven by the rebound of foreign tourists.

The research company also expects that the successful commercialization of the dementia drug TauRx being developed by TauRx Pharmaceuticals Ltd will be a potential key factor in the valuation of Genting Bhd's stock between 1.06 and 2.64 Ringgit per share, in which Genting holds a 20% stake.

It also notes that if granted a casino license in New York, the operator of the Resorts World brand integrated casino and resort, Genting Malaysia Bhd, will contribute incremental Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of 250 million to 320 million Ringgit in 2026.

Based on an Ebitda enterprise value of seven times, this could further increase the valuation of the stock by 30 cents, reaching 40 cents per share.

The research company stated: "We recommend investors to be positioned ahead of these potential upsides." He recommended a 'Buy' rating on Genting with a target price of RM4.75 and a target price for Malaysia Genting of RM3.30.

"We like Genting because it has multi-faceted growth potential and attractive valuation, trading at an enterprise value to EBITDA multiple of 5.5 times. Genting Malaysia stands out for its high liquidity and strong 8% dividend yield.

The research company stated: "The main downside risks to our 'overweight' call include lower-than-expected gaming volumes and win rates, increased gaming taxes, and value-destructive related party transactions."

Philip Capital Research expects revenue growth of 24% for Genting Singapore and 18% for Genting Malaysia, driving a 21% increase in earnings by 2025 due to rising gaming volumes, non-gaming expenditures, and the steady growth in foreign and local visitation support.

"Despite the strong momentum, earnings for Malaysia Genting and Genting Singapore in 2025 are projected to remain at 27% and 33% respectively, below pre-COVID-19 levels due to higher interest costs, larger losses at Resorts World (through Malaysia Genting), and higher effective tax rates."

It said, "It is worth emphasizing that both companies have exceeded their Ebitda levels before the COVID-19 pandemic, which demonstrates the strength of their core business."