Nomura's report presents strong signs of recovery for Genting Resorts World showing 40,000 daily visitors since its reopening in June
Genting Malaysia's EBITDA can be expected to start to turn around in the fourth quarter of 2020. All of the company's major casinos have reopened, and the improvement in the local tourism industry is also helping the company's flagship integrated resort in Malaysia, Genting World.
A team of research analysts from Nomura issued a report on Malaysia’s asset investment strategy on Thursday and reviewed the economic situation in Malaysia during the COVID-19 pandemic. The report stated that Genting Resort World has shown strong signs of recovery, including 40,000 daily visitors since its reopening in June, and the occupancy rate of 50% of its reopened hotel rooms is also at an average of 90%.
Report stated: “We expect Resorts World Genting to gradually recover in the next few quarters, and there will be an important turning point when its theme park opens in the 2022 fiscal year (the official schedule is mid-2021, but there is a chance to postpone it).”
Nomura also pointed out that "When analysing the Google search trends in Malaysia, it was found that although the search trends for airlines are still lower than the level before the epidemic, they include "hotel reservation" and "Genting" and other local travel-related words in Malaysia. Searches have almost returned to pre-epidemic levels. At the same time, searches for COVID-19 have also been reduced, indicating that the panic factor is declining."
Nomura continues to maintain a buying rating on Genting Malaysia's stock.
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