Theme Park Opening Pushes Genting Malaysia's Shares Higher
Shares of Genting Malaysia Bhd rose 5.22% on news that the company could be opening its outdoor theme park (OTP) a lot earlier than expected.
In its note on 24 July 2019, Maybank Investment Bhd said earnings estimates are unchanged, but it removed the 10% discount, which was previously ascribed to the sum-of-parts (SOP) based valuation on added certainty that the theme park would finally open.
"We previously ascribed a 10% discount to account for the possibility that opening of the OTP may be delayed beyond our assumed first quarter 2021 (1Q21)."
"Given that we are more certain that the OTP will finally open, possibly before our assumed 1Q21, we remove the aforementioned 10% discount to arrive at our revised SOP-based target price of RM3.80 (RM3.40 previously),” it said in a statement.
Maybank Investment has upgraded its call on Genting Malaysia to a buying stock (from hold). At 11.50 am (24 July 2019), shares of Genting Malaysia jumped 19 sen to RM3.64 with 27.81 million shares transacted.