KUALA LUMPUR (Nov 24): Genting Bhd fell as much as 0.9% before erasing losses after the casino operator reported weaker third-quarter and nine-month profit from a year earlier. The weaker financials have invited analyst downgrades on Genting.
At about 10am, the stock rose as much as seven sen or 0.7% to RM9.47 with 63,900 shares done. For comparison, the KLCI climbed some 19 points or 1%.
Earlier, Genting fell as much as eight sen to RM9.32.
Last Friday, Genting reported that net profit fell 24% to RM352.7 million in the third quarter ended September 30, 2014 from RM462.1 million a year earlier.
Cumulative nine-month (9MFY14) net profit was lower at RM1.22 billion versus RM1.33 billion a year earlier.
Today, Public Investment Bank Bhd analyst Siew Jin Ling said Genting's 9MFY14 net profit came in within the research firm's forecast but below consensus estmates.
In a note, Siew said Genting's 9MFY14 net profit constituted 71% and 63% of Public Investment's and consensus forecast respectively.
"We have reduced our FY15-FY16 earnings forecast by 4-6% respectively to account for the impact of GST implementation next year on the group's Malaysian operations. Consequently, our TP has been lowered to RM9.90 (from RM10.26 previously) based on SOTP valuations," Siew said.