GENTING (3182-Main Market): Travel, Leisure & Hospitality

GENTING (HLIB-BUY-RM6.95) is expected to record better QoQ performance in its upcoming 3Q23 results mainly driven by the strong results posted by Genting Singapore, where Genting Singapore alone is expected to contribute c.RM391m to Genting Berhad's 3Q23 earnings. Additionally, RWLV, power and O&G segments are also expected to perform well in the upcoming results.

We like GENTING for its deep expertise and experience in managing the gaming and hospitality businesses and its well spread operations across different regions which help to mitigate regulatory and country risks. In addition, GenT is currently trading at 14% discount of the value of its holdings in GenS (52.6%) based on the latest market cap at RM16bn on 10 Nov (@SGD/RM 3.46), implying attractive bargain in the stock.

Building a base at 4.00-4.10. A successful breakout above LT downtrend line near 4.28 will lift the stock higher to revisit 4.42-4.57 zones in anticipation of the KLCI constituent review (cut-off date 20 Nov) and Dec window dressing activities

✅Current price: RM4.15

✅Entry: RM4.00-4.10-4.15

✅Resistance: RM4.28-4.42-4.57

✅Cut loss: RM3.88

✅FY12/2024E P/E: 10.5x

✅FY12/2024E DY: 4.8%

✅Latest BVPS (RM):8.64 (or 0.48x P/B)

✅Risk profile: Low

HLIB Retail Research – 14 Nov – Bullish Tracker GENTING (3182-Main Market): Travel, Leisure & Hospitality GENTING (HLIB-BUY-RM6.95) is expected to record better QoQ performance in its upcoming 3Q23 results mainly driven by the strong results posted by Genting Singapore, where Genting Singapore alo

Source: Hong Leong Investment Bank Research - 14 Nov 2023