NEW YORK, July 5 (Reuters) - Gaming group Genting , whose shares have outperformed the Malaysian stock
market this year, is undervalued and its stock should keep
rising despite concerns about its casino operations, Barron's
said.
The company -- which also operates palm oil plantations, develops and manages property, and is in the paper, oil-and-gas, financial services, and tourism business -- has seen its stock soar 57 percent this year to 5.80 Malaysian ringgit, outperforming the Malaysia index.
However, the group's first-quarter net profit fell almost 50 percent, hurt by weaker revenue at its casinos in Britain and by lower plantation earnings.
Genting has said that a lower-than-expected power tariff rise in China and an expected surge in costs for its new casino in Singapore will also weigh on future earnings, raising investors' concerns.
But the company -- with a market value of about $6 billion -- is worth more given the growth outlook of Asia, Barron's said, citing David Winters, manager of Wintergreen Fund.
'This is one of the great Asian success stories,' Winters said, quoted by the business weekly publication in its July 6 edition.
Genting is the only casino license holder in mostly-Muslim Malaysia, and is building a casino resort in neighboring Singapore.
(Reporting by Juan Lagorio; editing by Matthew Lewis ) Keywords: GENTING/ (juan.lagorio@thomsonreuters.com; + 1 646 223 6000; Reuters Messaging: juan.lagorio.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company -- which also operates palm oil plantations, develops and manages property, and is in the paper, oil-and-gas, financial services, and tourism business -- has seen its stock soar 57 percent this year to 5.80 Malaysian ringgit, outperforming the Malaysia index.
However, the group's first-quarter net profit fell almost 50 percent, hurt by weaker revenue at its casinos in Britain and by lower plantation earnings.
Genting has said that a lower-than-expected power tariff rise in China and an expected surge in costs for its new casino in Singapore will also weigh on future earnings, raising investors' concerns.
But the company -- with a market value of about $6 billion -- is worth more given the growth outlook of Asia, Barron's said, citing David Winters, manager of Wintergreen Fund.
'This is one of the great Asian success stories,' Winters said, quoted by the business weekly publication in its July 6 edition.
Genting is the only casino license holder in mostly-Muslim Malaysia, and is building a casino resort in neighboring Singapore.
(Reporting by Juan Lagorio; editing by Matthew Lewis ) Keywords: GENTING/ (juan.lagorio@thomsonreuters.com; + 1 646 223 6000; Reuters Messaging: juan.lagorio.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.