Genting Malaysia’s 20th Century Fox theme park opening has been delayed until 2017, which is “a negative development” for the company, according to CIMB Research.
CIMB Research said it organized a meeting with Genting Malaysia’s management and eight fund managers, which yielded both positive and negative surprises.
“The 20th Century Fox theme park opening has been delayed until 2017, a negative development, in our view,” CIMB said in a note.
However, the new shopping mall and additional gaming capacity will come onstream from mid next year compared to the initial date of late 2016; but this positive is likely to be mitigated by pre-operating expenses.
CIMB added that the recently introduced GST, a consumption tax, has not affected gaming volumes.
“We were positively surprised to learn that the recent haze and GST have not had any negative repercussions on gaming volumes in Genting Highlands.”
“Negative consumer sentiment has also not hurt gaming volumes, in line with Genting Malaysia’s experience in past economic cycles. This is a testament to Genting Malaysia’s economic moat. It is a defensive casino monopoly domestically.”