Malaysia’s gaming sector growth slowing

Genting chipFinance market analysts of Malaysia’s RHB Research forecast Malaysia’s gaming sector in 2014 to see “relatively unexciting growth prospects” compared to its Macau peers.

The research house forecasts the sector’s earnings growth to be around 5.6 per cent for 2014 and 6.7 per cent for 2015, against consensus projections for Macau’s casino operators at 22.4 per cent for 2014 and 17.8 per cent for 2015.

“The sturdier growth in Macau’s gaming market is mainly underpinned by the continued influx of visitors from China in tandem with the domestic economy’s expansion,” the research firm said in a note released on December 30.

Growth-seeking investors are likely to increase their exposure in Macau’s gaming market, while staying away from Malaysia-listed gaming stocks for now, RHB Research said.

RHB Research maintains “neutral” on the sector for 2014 by only rating “buy” on Berjaya Sports Toto Bhd, thanks to its appealing dividend yield of 6.3-6.9 per cent.

It said it was too early to quantify the potential earnings accretion of Genting Malaysia Bhd’s proposed RM5 billion ($1.54 billion) capital expenditure to rejuvenate its flagship Genting Highlands Resorts over the next 10 years.

“This is because the first phase of the proposed facelift will only be completed by the second half of 2015, the research houses added.



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Finance market analysts of Malaysia's RHB Research forecast Malaysia's gaming sector in 2014 to see "relatively unexciting growth prospects" compared to its Macau peers. The research house forecasts the sector's earnings growth to be around 5.6 per cent for 2014 and 6.7 per cent for 2015, against consensus projections for Macau's casino operators at 22.4 per cent for 2014 and 17.8 per cent for 2015. "The sturdier growth in Macau’s gaming market is mainly underpinned by the continued influx of visitors from China in tandem with the domestic economy’s expansion," the research firm said in a note released on December...

Genting chipFinance market analysts of Malaysia’s RHB Research forecast Malaysia’s gaming sector in 2014 to see “relatively unexciting growth prospects” compared to its Macau peers.

The research house forecasts the sector’s earnings growth to be around 5.6 per cent for 2014 and 6.7 per cent for 2015, against consensus projections for Macau’s casino operators at 22.4 per cent for 2014 and 17.8 per cent for 2015.

“The sturdier growth in Macau’s gaming market is mainly underpinned by the continued influx of visitors from China in tandem with the domestic economy’s expansion,” the research firm said in a note released on December 30.

Growth-seeking investors are likely to increase their exposure in Macau’s gaming market, while staying away from Malaysia-listed gaming stocks for now, RHB Research said.

RHB Research maintains “neutral” on the sector for 2014 by only rating “buy” on Berjaya Sports Toto Bhd, thanks to its appealing dividend yield of 6.3-6.9 per cent.

It said it was too early to quantify the potential earnings accretion of Genting Malaysia Bhd’s proposed RM5 billion ($1.54 billion) capital expenditure to rejuvenate its flagship Genting Highlands Resorts over the next 10 years.

“This is because the first phase of the proposed facelift will only be completed by the second half of 2015, the research houses added.



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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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