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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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CGS-CIMB: Sectors to watch out for come 2021


KUALA LUMPUR (Dec 17): CGS-CIMB has overweight ratings on bank, healthcare, gaming, oil and gas, electronics manufacturing services (EMS), media and rubber gloves sectors, and underweight ratings on chemicals and transport.
The research house said in a report that it likes the bank, gaming, oil and gas, EMS and media sectors for exposure to a recovering economy post-Covid-19.
“We continue to like the gloves sector, as it is expected to deliver record earnings in 2021 due to strong demand for gloves following the Covid-19 outbreak.
“However, as we had cautioned earlier, the key risk is that the rubber gloves is now a crowded trade given its stellar share price performance in 9M20 (first nine months of 2020). This, coupled with concerns over the treatment of its workers and potential new capacities coming on stream, has led investors to rotate out of the gloves sector into banks,” it said. ....

Kuala Lumpur , United States , Diabochi Bhd , Karex Bhd , Setia Bhd , Toto Bhd , Inari Amertron Bhd , Lee Swee Kiat , Genting Bhd , Top Glove Corp Bhd , Star Media Group Bhd , Malakoff Corp Bhd , Public Bank Bhd , Hartalega Holdings Bhd , Astro Malaysia Holdings Bhd , Malaysia Airports Holdings Bhd , Lee Swee Kiat Group Bhd , Kossan Rubber Industries Bhd , Taliworks Corp Bhd , Supermax Corp Bhd , Holdings Bhd , Telekom Malaysia , Media Prima Bhd , Star Media Group , British American Tobacco , Genting Malaysia Bhd ,