Quick take: Genting Malaysia up 1% on positive results

KUALA LUMPUR: Shares in Genting Malaysia Bhd rose almost 1% in active trade in early trade Friday following the release of its surprisingly positive quarterly earnings.

The casino operator, one of the most active counters on Bursa Malaysia rose 0.96%, or three sen to RM3.15 with 7.96 million shares.

Genting Malaysia posted higher net profit of RM416.48mil for the second quarter ended June 30,2019 (2QFY19). Its quarterly net profit grew 5.25% against RM395.7mil in the previous corresponding quarter.

Quarterly revenue came in higher at RM2.66bil against RM2.42bil. The group declared an interim dividend of six sen.

For the first six months ended June 30, its net profit fell to RM684.7mil from RM753.9mil in the same period last year. Revenue, however, was higher at RM5.33bil against RM4.82bil previously.

Affin Hwang Capital Research said Genting Malaysia reported an exceptionally strong set of numbers.

“6M19 core-PATAMI of RM737mil (-10% yoy) is above consensus and our expectations, constituting to 59% and 63% of consensus and our forecast respectively, ” it said.

The better-than-expected performance were driven by the exceptionally high hold percentage in the VIP segment which follow through the 6M19. The high hold percentage has compensated for the lower gaming volume.

“We have tweak our forecast to incorporate 6M19 performance, but keeping our target price unchanged at RM3.40 and hold call unchanged, ” Affin said.

Source: TheStar