Analytical company Maybank Research has slashed its Earnings Per Share (EPS) prediction for Resorts World Genting in Malaysia by 58 per cent in 2021 on the belief that footfall will be affected by a new Movement Control Order (MCO) which will restrict six Malaysian states.
Whilst only lasting two weeks from January 13 to 26, it will cover six states; Penang, Selangor, Federal Territories, Johor, Melaka and Sabah.
Maybank Analyst Samuel Yin Shao Yang said: “The previous MCO that required RWG to shut operations was implemented on 18 March 2020 and was scheduled to last two weeks. RWG only reopened three months later on 19 Jun 2020. As the number of new COVID-19 cases in Malaysia are a lot higher currently, we gather that the MCO in Selangor and Kuala Lumpur will last for a similar three months at least. This may cause RWG to forego the Chinese New Year peak season and raise doubts if Genting Skyworlds will open in 2H21.”