$GENM (4715.MY)$ Driven by a significant increase in tourist...

$GENM (4715.MY)$ Driven by a significant increase in tourist numbers, Genting Malaysia Berhad (GENM) expects an improvement in the quarterly performance for the second quarter of 2024. Boosted by strong tourism data, the company's Malaysian operations are forecasted to achieve quarter-on-quarter and year-on-year growth. Recent data shows that Malaysia welcomed 6 million tourists in the second quarter of 2024, a 26% increase from the same period last year and a 3% increase from the previous quarter. This growth includes a noticeable rebound in Chinese tourists, with the number reaching 0.69 million, compared to 0.32 million in the fourth quarter of 2023. Additionally, the number of tourists from Singapore, Indonesia, and India increased by 10%, 25%, and 87% respectively.

Analysts emphasize that GENM is a top investment choice for those looking to profit from the rebound in the tourism industry and have given it a buy rating. The current PE ratio is 13.0 times, with a dividend yield of about 6-7%. GENM's valuation is considered attractive. Analysts expect that the improvement in economic activities and the continued recovery of the tourism industry will continue to support GENM's profit growth throughout the entire 24 fiscal year. The company's business in the USA also shows positive signs, with the latest quarter's gambling revenue increasing by 3.1% year-on-year.

It is expected that the economic conditions in Malaysia will be favorable for continued growth in the remaining time of 2024. Government initiatives, including cash handouts to low-income families and an increase in civil service wages starting from 2025, as well as expected growth in private consumption and the tourism industry, are expected to increase GENM's revenue. The Ministry of Tourism, Arts, and Culture predicts that the number of visitors in 2024 will reach 27.3 million, with expected revenue of 102.7 billion ringgit, higher than 71.3 billion ringgit in 2023.