Genting Bhd reported today a profit in the third quarter as more people visited its casinos and flagged a satisfactory performance for the full year.“Whilst the global economy continues to show signs of recovery, the group remains cautiously optimistic of its prospects,” Genting said in its results statement.
Genting, valued at US$7.8 billion (RM26.5 billion), posted July-September net profit of RM371 million against a loss of RM40 million a year ago.
Analysts do not provide quarterly earnings forecast for Malaysian companies, but Genting’s third-quarter net profit accounted for 38 per cent of analysts forecasts of RM967 million for the full year.
The group’s unit Genting Singapore is building Resorts World Sentosa (RWS), the city state’s second integrated resort, and it is also the largest casino operator in the United Kingdom.
The casino in Singapore, seen as one of the group’s key earnings drivers in the future, is on track for a January opening.
“We presume that Genting Singapore will command 45 per cent share of the S$4 billion (RM9.6 billion) gaming market,” Andrew Lee, head of research at Maybank Investment Bank said in a recent note.
Genting, Southeast Asia’s largest gaming company, also has substantial interests in oil palm plantations, power generation and property development which it deems as non-core businesses for sale at the right price.
Out of 22 analysts tracked by Thomson Reuters I/B/E/S, 18 had buy or strong buy recommendations on Genting, with only two rating it a sell or underperform.
Genting shares have nearly doubled this year, outperforming the 45 per cent rise in the broader market index.
