The Hong Leong Investment Bank (HLIB) is expecting a recovery for the Malaysian gaming sector in the second half of 2023 (2H23) driven in part by a rise in tourism to the region, as reported in The Star.
The Hong Leong Investment Bank (HLIB) is expecting a recovery for the Malaysian gaming sector in the second half of 2023 (2H23) driven in part by a rise in tourism to the region, as reported in The Star.
Concerns over regulation are likely to diminish after state polls.
Noting that the gaming sector has a dismal start to 2023, HLIB believes the recovery has a way to go before returning to pre-pandemic levels.
HLIB has commented favorably on several companies.
It said Genting shares, with a target price of RM6.70 ($1.43), is currently trading at a discount of 23 percent to the value of its holdings in GenS.
HLIB also expects Genting’s Resorts World Las Vegas to continue to grow, especially with the coming summer holidays and the F1 Las Vegas Grand Prix planned for later in 2023.
It believes investors’ concerns about regulatory risk are caused by the upcoming state polls but predicts a recovery once the risk concerns are put to bed.
‘’Nonetheless, should the group’s operation remain status quo post state election, stock price should recover once the policy risk dissipates,’
