Friday 29 Mar 2024
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KUALA LUMPUR (Aug 30): Genting Malaysia Bhd's share price rose as much as eight sen or 2.56% to RM3.20 so far today after the casino operator declared a dividend of six sen a share and reported net profit which surpassed market forecast.

Yesterday, Genting Malaysia said net profit rose to RM416.48 million in the second quarter ended June 30, 2019 (2QFY19) from RM395.71 million a year earlier.

Cumulative 1HFY19 net profit, however, dropped to RM684.77 million from RM753.94 million a year earlier, according to Genting Malaysia. The group declared an interim dividend of six sen a share for 2QFY19.

Today, Hong Leong Investment Bank Bhd analyst Andrew Lim Ken-Wern wrote in a note that Genting Malaysia's results are deemed in line with forecast.

"No changes to FY19 earnings (forecast) as the results are deemed in line. Nonetheless, we cut FY20/21 earnings by 16%/10% respectively as we impute the potential losses from the acquisition of Empire (Resorts Inc)," Lim said.

He said Hong Leong maintained its hold call for Genting Malaysia shares with a lower target price (TP) of RM3.38 versus RM3.79 previously.

Affin Hwang Investment Bank Bhd analyst Ng Chi Hoong wrote in a note today that Genting Malaysia's 1HFY19 core profit after tax and minority interest of RM737 million came in above expectations, at 59% and 63% of consensus and Affin Hwang's full-year forecasts respectively.

"We raise our 2019 (estimated) earnings to factor in the better 2QFY19 performance, but maintain our hold call with an unchanged TP of RM3.40," Ng said.

At 10:30am, Genting Malaysia shares were traded at RM3.14 with some nine million units transacted.

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