CIMB upgrades Genting Malaysia to “Buy” after New York licence approval

nalysts see the approval as a pivotal step for the group’s medium-term earnings.

Malaysia.- CIMB Securities has upgraded Genting Malaysia Bhd from “Hold” to “Buy” following the award of a downstate New York commercial casino licence to its US subsidiary, Resorts World New York City (RWNYC). Analysts see the approval as a pivotal step for the group’s medium-term earnings.

The licence, granted on December 16, enables RWNYC to transition from limited gaming operations into a full-scale commercial casino.

CIMB lowered its financial year 2026 core earnings per share (EPS) forecast by 8 per cent, citing higher interest costs linked to debt raised by RWNYC to fund the licence fee and initial capital expenditure. It expects EPS to be down by around 1 per cent year-on-year. However, the analysts stressed that would be a transitional phase.

For 2027, it’s raised its core EPS estimate by 25 per cent, assuming a full-year contribution from table games and an increase in operating capacity to 400 tables by January 2027. Under this scenario, Genting Malaysia’s core EPS is projected to be up by 39 per cent year-on-year.

The research note also highlighted that Genting Malaysia is likely to prioritise debt reduction over shareholder distributions, with CIMB forecasting no dividend payouts through FY27.

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nalysts see the approval as a pivotal step for the group’s medium-term earnings. Malaysia.- CIMB Securities has upgraded Genting Malaysia Bhd from “Hold” to “Buy” following the award of a…