Broker: Maybank Investment Bank Berhad
Date of Report: May 21, 2026
Excerpt from Maybank Investment Bank Berhad report.
Report Summary
- Stock: Genting Malaysia (GENM MK)
- Action: BUY (Maintain)
- Target Price: MYR 2.92 (revised down from MYR 3.27)
- Key Idea: Although 1Q26 earnings were underwhelming due to higher payroll costs across Resorts World Genting (RWG), Genting UK (GENUK), and Resorts World New York City (RWNYC), the broker expects earnings to strengthen from 2Q26 onwards, driven by new table games revenue at RWNYC and lower gaming machine tax rates.
- Highlights:
- 1Q26 earnings missed expectations mainly due to cost pressures from increased payroll and National Health Service expenses.
- FY26E earnings forecast cut by 11% on lower EBITDA margins at RWG and GENUK, but FY27E/FY28E earnings raised by 25%/26% based on anticipated contributions from RWNYC table games.
- Gaming machine tax rates at RWNYC reduced, expected to boost FY26E earnings by USD68m and even more on a full-year basis.
- Potential for further corporate actions, including a possible takeover attempt by Genting Bhd.
- Implications: Investors should note the lower near-term margin expectations but anticipate stronger earnings momentum ahead as RWNYC expands table games and benefits from tax rate reductions. The revised target price implies significant upside from the current share price.
above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking
