KUALA LUMPUR (Oct 29): AllianceDBS Research has maintained its “Hold”rating on Genting Malaysia Bhd (GenM) with a higher target price of RM4.50 (from RM4.10) and said although it expects GenM’s longer term prospects to improve assuming it successfully executes on the Genting Integrated Tourism Plan (GITP), the stock was fairly valued at present.

In a note today, AllianceDBS IB vice president for equity Cheah Yoong Kim said GenM’s 1H15 core earnings of RM626 million accounted for 47-45% of his and consensus’ full year estimates, respectively.

“Nonetheless, we deem the results to be within expectations as we expect a stronger 2H after the impact of GST on domestic consumer spending tapers off.

“We also believe the weak ringgit will attract more tourist visitations and encourage more local travelling among Malaysians, which could benefit GenM,” he said.

“We roll forward our valuation base to FY16 and raise our target price for GenM to RM4.50 based on SOP valuation. We believe that it is fairly valued at this juncture. Maintain Hold,” he said.