[%RSEC%]
Research by Public
Outperform - TP RM3.00

"Dragged By Higher Costs"

Genting Malaysia’s (GENM) 2QFY24 net profit rose 74.5% YoY to RM82.3m due to higher contribution from the Leisure & Hospitality segment, particularly Malaysia and the UK & Egypt. However, after stripping out foreign exchange effect and non-operating items, core net profit was down 17% YoY due to higher operating expenses. For 1HFY24, results were below expectations at 31% and 34% of our and consensus full-year estimates respectively. The variation in our forecast
was mainly due to higher-than-expected depreciation and tax costs. As we raise our depreciation cost assumption for FY24-26F, we reduce our earnings forecasts by an average of 14%. We re-introduce our SOTP-based TP of RM3.00 following a temporary suspension of coverage. Maintain Outperform. An interim dividend of 6.0sen per share was declared.

Analyst:
Eltricia Foong
[%wHbT%]

$KLSE-GENM
Research by Public
Outperform - TP RM3.00

"Dragged By Higher Costs"

Genting Malaysia’s (GENM) 2QFY24 net profit rose 74.5% YoY to RM82.3m due to higher contribution from the Leisure & Hospitality segment, particularly Malaysia and the UK & Egypt. However, after stripping out foreign exchange effect and non-operating items, core net profit was down 17% YoY due to higher operating expenses. For 1HFY24, results were below expectations at 31% and 34% of our and consensus full-year estimates respectively. The variation in our forecast
was mainly due to higher-than-expected depreciation and tax costs. As we raise our depreciation cost assumption for FY24-26F, we reduce our earnings forecasts by an average of 14%. We re-introduce our SOTP-based TP of RM3.00 following a temporary suspension of coverage. Maintain Outperform. An interim dividend of 6.0sen per share was declared.

Analyst:
Eltricia Foong
eltriciafoong@publicinvestbank.com.my