New retail/dining facilities to boost Genting Malaysia visitation

Genting Malaysia’s proposals to expand its retail and dining offerings sevenfold at its Resorts World Malaysia property should help drive visitation and ultimately casino revenue, CIMB Equities Research said in a note.
“In 2015, we expect more positive news flow on Genting Integrated Tourism Plan developments to drive Genting Malaysia’s re-rating,” it said.
Genting Malaysia’s blue print of its Sky Avenue and Sky Plaza includes a 400,000 sq. ft open-sky concept offering retail and dining, scheduled for launch in 2015.
CIMB said the impact on earnings from the expansion won’t be significant, but combined with the opening of Genting Premium outlets by the end of next year and the opening of a new theme park in 2016, the new offerings should drive visitation and in turn casino revenue.
“Genting Malaysia expects to increase annual visitation from 20 million in 2014 to 30 million by 2020. We maintain our FY14-16 forecasts, RNAV-based target price and Add rating. The potential re-rating catalysts are a New York casino win and newsflow on GITP updates,” it said.
Genting is spending RM5 billion ($1.6 billion) to revamp its 49-year-old Resorts World Genting. The company, whose facilities are seen as ageing, is gearing up to meet increasing competition from regional neighbours with newer attractions and facilities.