Friday 29 Mar 2024
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KUALA LUMPUR (July 14): Genting Bhd rose 1.73% in early trade this morning, after Alliance DBS Research said the group is expected to enjoy ongoing rerating in this year, on the back of progressive launches of key developments in Genting Integrated Tourism Plan (GITP) and Genting Singapore earnings recovery.

At 10.35am, Genting Bhd rose 16 sen to RM9.40 with 532,200 shares traded, for a market capitalisation of RM35.05 billion.

The counter opened at RM9.25, compared with the previous day’s closing of RM9.24. The stock hit an intraday high of RM9.42.

Genting Bhd, which owns 49.32% of Genting Malaysia Bhd, also has a 52.84% stake in Genting Singapore PLC. Collectively, the Genting Group is a diversified entity, the businesses of which include hotel, casino and oil palm plantations.

In a note today, Alliance DBS analyst Cheah King Yoong said being the parent company of Genting Singapore and Genting Malaysia, Genting Bhd offers a cheaper exposure to both these subsidiaries.

“Its valuation remains attractive, when compared to Genting Singapore and Genting Malaysia, particularly after the recent price appreciation of these subsidiaries,” he said.

In addition, Cheah said the stronger earnings recovery by Genting Singapore is underpinned by cost reduction initiatives and more conservative credit policy.

Cheah said Genting Bhd serves as the research house top pick for the gaming sector and maintains its “Buy” rating on Genting Bhd, with a target price of RM11.50.

“With growing investor interests on Genting Singapore and Genting Malaysia, we expect the valuation gap between Genting Bhd and its intrinsic value, to narrow going forward,” he said.
 

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