KUALA LUMPUR: Genting Malaysia Bhd is expected to post a solid fourth quarter (Q4), given the year-end seasonality, Kenanga Research said.
This also follows the strong set of Genting Singapore's nine-month FY22 results where core profit jumped 75 per cent quarter-on-quarter (QoQ) to SG$241 million on higher revenue as tourists returned.
Kenanga Research said this made up 72 per cent of the consensus' FY22 forecast.
"We deem the result is above expectation given that Q4 FY22 is seasonally a strong quarter on year-end holiday season and result usually is stronger than that of Q3," it said.
This was also backed by 49 per cent QoQ and 107 per cent year-on-year (YoY) hikes in Q3 FY22 revenue with gaming revenue led by the more affluent and premium customers that stayed slightly longer.
Singapore registered a 91 per cent jump in tourist arrivals of 2.04 million in Q3 2022 from 1.07 million in Q2 2022 a contrast to only 246,000 during the pre-reopening of international border from April 1, in Q1 2022.
"We remain optimistic that the two-year lacklustre earnings streak at Genting Singapore is likely ending with earnings recovery from Q2 FY22 as the reopening of international borders from April 1 slowly brings back visitorship.
"And, this would apply to Genting Malaysia as well. This should eventually benefit the parent company Genting Bhd as well," it said.
Kenanga Research has raised Genting Malaysia's FY22 and FY23 earnings forecasts by 21 per cent and 19 per cent to reflect the strong Genting Singapore's Q3 FY22 earnings.
The firm maintained its "Outperform" call on Genting Malaysia, with an unchanged target price of RM5.86.