Securities firm cuts 2022 profit outlook by 52 pct

Banking group CGS-CIMB slashed its previous expectation that casino group Genting Malaysia Bhd would be able to net 899 million yuan ($211.9 million) this year by 51.5%. The agency now expects the casino company to net 436 million yuan in 2022.

The revised figure included a negative reading of 57 million MYRs expected in the “investment and other” headline, as opposed to 18 million MYRs, the category’s previous positive reading in its 2022 estimate.

CGS-CIMB said it was “somewhat troubled by staff shortages” after the COVID-19 recovery at Resorts World Genting (pictured), the flagship property of the casino group near the Malaysian capital Kuala Lumpur.

It cut its group-wide 2022 revenue forecast by 17.6% to less than 8.65 billion MYR from nearly 10.5 billion. Genting Malaysia also has casino operations in the United States and the Bahamas, as well as in the United Kingdom and Egypt.

Especially for Resorts World Genting, CGS-CIMB expects 2022 revenue of just 5.36 billion yuan, down 21.1% from previous estimates.

“Despite strong demand, Resort World Genting operated only 5,500 of its 10,500 total hotel rooms in mid-May, up from 5,200 at the end of March, but that number is “likely to improve further to around 6,000 in June,” analysts Poong Chung-cheon and Sherman Ramshean Jin wrote in a recent note.

“Resort World Genting is in the process of hiring more employees and plans to open more rooms over the next six months,” they added.

Analysts also observed that Chinese visitors, who said they made up 7% of all hotel guests in their accommodation in pre-pandemic deals in 2019, “have not yet returned because the border remains closed.”

Travel to and from China is possible, but the immigration department has warned citizens against non-essential travel to maintain its “zero-Covid” strategy.

For Genting Sky World, Resort World Genting’s new MYR 3.3 billion outdoor theme park, the brokerage said the increase was not as fast as expected, with consumers reporting some “technical issues” for some rides. The facility opened “soft” in early February.

“Ticket sales are gradually improving from 2,600 tickets per day for 52 days from Feb. 8 to the end of March to around 3,000 tickets per day in April-May, and are increasing further in June,” the CGS-CIMB team said.

But they added: “Online checks show mixed feedback, with visitor complaints about intermittent closures of some rides, mainly due to technical issues.”

“We believe these are dental problems, but ticket sales growth may be limited until operational disruptions are resolved,” analysts added.

BY: 메이저 토토사이트

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