GOING forward, Hong Leong Investment Bank (HLIB) anticipate continued earnings recovery for GenM and GenS, and thus benefitting GenT, driven primarily by the improving tourist numbers in both Malaysia and Singapore.
The recovery in both countries will be largely supported by improving travel flows from key Asia-Pacific source markets.
In Singapore, the momentum will be further reinforced by the rollout of high-profile attractions such as Illumination’s Minion Land, Mandai’s Rainforest Wild Asia, and the Disney Adventure Cruise Ship.
Meanwhile, Malaysia stands to benefit from its official assumption of the ASEAN Chairmanship in 2025. During this period, Malaysia will host more than 300-related meetings, programs, and summits throughout 2025.
This momentum will continue into Visit Malaysia Year 2026. A notable development to monitor in the second half of 2025 is Resorts World New York City (RWNYC)’s bid for a full-scale commercial casino license in downtown New York.
RWNYC must secure one of the three available licenses to offer Las Vegas-style slot machines and table games.
On 27 June, RWNYC has officially submitted its proposal to the New York State Gaming Commission, competing against seven other bidders, with the three winners to be selected on 01 December.
According to RWNYC’s proposal, gross gaming revenue is projected to more than double (+2.2x) by 2027. We believe its potential could be interesting as many New York City residents currently travel out-of state for table gaming.
To be conservative, we will only incorporate the uplift into our target price upon a successful bid outcome. We believe SPToto’s number forecast operator segment will continue to deliver stable revenue growth, supported by a growing population and rising household income.
Separately, we note some investor unease following SPToto’s recent related party transaction in late June 2025 – the acquisition of three freehold commercial units at Berjaya Times Square – which has raised concerns around the group’s capital allocation discipline.
We maintain our NEUTRAL stance on the gaming sector, as the anticipated recovery from rising tourist arrivals may be weighed down by GenM’s operational risks, evidenced by past weaker-than-expected results.
Additionally, investor concerns over SPToto’s capital allocation discipline could stifle its investment appeal. —Aug 8, 2025
Main image: The Star
