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Delay in earnings recovery


were touted as recovery plays following the potential dispensation of Covid-19 vaccines.
However, the latest two-week travel restriction starting tomorrow may see lower NFO sales and reduced visitors to Genting Malaysia’s flagship integrated resort, Resorts World Genting (RWG).
Maybank IB Research said it is cutting Genting Malaysia’s financial year 2021 earnings per share (EPS) by 58% following the MCO, which will be enforced in six states, including Selangor and Kuala Lumpur, which are RWG’s key markets.
Individuals from these states will not be allowed to travel inter-state.
“While most of RWG is located in Pahang, where a looser conditional MCO (CMCO) will be reimplemented, we gather that the great majority of day trippers – about 75% of total visitor arrivals – who visit RWG are from Selangor and Kuala Lumpur, ” the research firm said in a note yesterday. ....

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