KUALA LUMPUR (Dec 26): RHB Research has maintained its “Neutral” rating on the gaming sector and said following the release of 3Q14 results, three out of five companies under its coverage posted disappointing numbers on the subpar luck factor.

In a note Friday, the research house said a potential earnings erosion upon implementation of the GST come Apr 2015 and tightening consumer spending amidst rising inflationary pressure warrant its cautious stance aheead of 2015.

“While we find comfort in Genting Malaysia Bhd’s proposed RM5 billion capex to rejuvenate its flagship Genting Highlands resorts, the first phase of the proposed facelift will only be completed by 2016.

“As for the number forecast operator (NFO) segment, we believe industry growth is unlikely to be exciting, although share prices are likely to be supported by dividend yields of 6-7% per annum,” it said.