Genting Berhad’s Corporate Structure

Genting is the holding company and major shareholder of 3 other listed companies: Genting Singapore (52.6%), Genting Malaysia (49.3%), and Genting Plantations (55.4%). Privately, Genting also owns Genting Energy as well as Resorts World Las Vegas.

It’s important to mention again that:

1. Only Resorts World Las Vegas is wholly owned by Genting;

2. Genting’s other casinos and resorts are parked under Genting Malaysia (GENM) and Genting Singapore (GENS); and

3. Premium outlets are parked under Genting Plantations.

Genting Energy, on the other hand, owns energy and O&G assets around the region, with total gross capacity of over 1,800MW attributable to them mainly from coal fired power plants but also includes wind and solar farms as well as O&G upstream production.

They are building a Floating Liquefied Natural Gas asset, slated for completion in 2026, as well as expanding their other energy asset bases.

Revenue Breakdown

Genting derives over 80% of their revenue from their Leisure and Hospitality segment, which covers Gaming (aka gambling) revenue and non-Gaming revenue such as hotel rooms, F&B, retail, tenancy leases, Transportation and so on.

Other than leisure and hospitality, Genting Plantations and Genting Energy also contribute over 10% and 6% of total revenues respectively.

Geographically, Genting derives over 60% of their revenue from Malaysian and Singaporean operations. 21% comes from the US and Bahamas, 11% from AsiaPac excluding MY and SG (meaning, China, Indonesia, India, etc), and 7% from UK and Egypt.

Valuation mismatches and Fund Flow Issues

As mentioned earlier, Genting is the major shareholder of 3 other principal listed subsidiaries as well as two other privately held principal subsidiaries. We can easily find out the value of their stakes in the listed subsidiaries by referring to the market value.

Evidently, with Genting’s current market cap of around RM11.7 bil only, there is a stark discount (over 50%) compared to the value of their shareholdings in their listed subsidiaries.

Note that this excludes their non-listed subsidiaries which are also major companies themselves.

It’s worth noting that, historically, Genting has almost always traded below their book value per share. However, the gap has been widening and we are near all-time low discounts to book value per share—about 0.37x price to book.

You could argue that this is a sign of a depressed valuation, and that future prospects are very dim. You may not be wrong, as Genting’s profitability has been shrinking, dividends were cut, and management did not instill confidence.

However, I say it’s more likely a fund flow issue than a valuation issue.

As you can see, for most of its history, the share prices of Genting, GENM, and GENS tend to move in tandem with each other. However, since the Liberation Day Tariff event, the trends have started to change substantially.

GENM (GENM) is up over +50% from April lows, GENS (G13) is up over +20%, while Genting is still down about -2%.

In August 2025, MSCI removed Genting, PPB, and Sime Darby from their MSCI Malaysia Index. This means that most, if not all, passive funds and ETFs that are tracking the index for global investors would automatically sell their shares, effective August 26.

This created a sudden large supply of float shares in the market, causing selling pressure on the share price. This is public information, so it’s very likely that active fund managers and investment bankers are also aware of the influx of float shares and would wait to pick up the shares at the cheapest price they can get.

Therefore, if it was a fundamental business issue, all of Genting’s companies should be dropping together—but we see that price divergence has emerged, hinting to me that it could be a fund flow issue rather than a business problem.

Upcoming Events that could potentially positively impact Genting’s Profits

1. US Interest Rate Cutting Cycle

For most companies, the impact would be incremental. However, for heavily leveraged companies, the savings would be substantial. And Genting is definitely one debt-heavy company—almost RM40 bil in borrowings, mainly denominated in USD.

Genting’s borrowings have both fixed and floating components, and the floating portions are typically benchmarked against various overnight financing rates plus a certain premium.

For example, a part of their USD borrowings are based on the Secured Overnight Financing Rate (SOFR) + 1.5%, some are SOFR + 2.25%.

2. Restructuring of Genting Empire Resort USA

Genting Empire Resort, parked under GENM, was a sour Related Party Transaction acquisition carried out by the company in 2019. It was originally owned by the Lim family, was making major losses, and then they used GENM to buy 49% of the company and subsequently in 2025, to acquire the remaining 51% of the company from themselves.

Throughout the period, Empire Resorts reported losses of over RM200-300mil per year, and the Lim family basically tossed this loss making privately owned company and its associated debts into the publicly listed entity, and got paid over RM350mil in the process of the disposal at the expense of public shareholders.

Nevertheless, restructuring plans are in place now that GENM owns 100% of this subsidiary.

This restructuring involves:

1. Step 1: The disposal of many non-gaming assets by Empire Resorts to Sullivan County such as the hotels, golf course, event centres and restaurants for USD525mil;

2. Step 2: Empire Resorts will acquire the land that these assets are built on, and then lease the land to Sullivan county to operate those non-gaming assets.

This restructuring will substantially reduce GENM’s debt, with finance cost savings estimated at over USD40 mil per annum, and gives them a form of recurring income from the leasing of the land. At the same time, this would staunch the bleeding from this subsidiary.

The deal is not yet completed, but with key details like these already public, it’s reasonable to think it’s already at the final stages.

3. Finalisation of the New York Casino License

There are up to 3 licenses to be awarded to operate casinos in downstate New York. Of which, GENM is expected to be one of the front runners for this alongside other major players such as MGM.

GENM already has existing infrastructure in New York: Resorts World New York City (RWNYC), which already houses over 5,500 slot machines and electronic table games. If they get the license, they could very quickly expand to include full casino operations such as table games, cards, and so on compared to the competition who would need to build a full fledged casino from scratch.

If successful, RWNYC would be the largest casino in New York.

Generally, this New York Casino License, if it materialised, is viewed by analysts as a very substantial positive earnings contributor to the group.

4. Genting’s Energy Business continues to increase asset base and recurring income

Genting Energy is expecting to increase gross power generation from 3,500MW to over 5,100MW over the next few years.

Furthermore, they have been working on a Floating Liquefied Natural Gas (FLNG) facility since early 2024 in Indonesia, costing them around USD1.2 bil. This FLNG facility, for a simplified understanding, can be viewed as similar to Yinson’s FPSO.

This is scheduled for completion in end 2026, which is expected to contribute about RM300 mil+ of earnings a year once commissioned, according to UOB Kay Hian.

5. Genting Plantation continues to generate strong cash flows to support the group

We’ve discussed about the plantation industry in depth before, so I won’t go into more details here.

Perhaps, with Genting’s large landbank, Genting Plantations can consider selling off more land in Johor to realize gains on disposals. They have already sold off a few parcels, and they have many more acres to dispose if it makes economic sense.

6. Recovery in GENS Operations

GENS operations were rather weak and the company is focusing on asset enhancement initiatives, with temporary closure of their sea aquarium and property renovations.

Most of the refresh of assets & infrastructure upgrades are slated for opening (or are already operating) in 2H 2025. Once completed, GENS operations may improve.

As Genting is the holding company for these principal subsidiaries, any increase in profits for the subsidiaries would also directly impact the attributable profit to Genting as well.

7. TauRx Alzheimer drug developments

This is highly speculative, as most pharmaceutical breakthroughs are. TauRx, a company that Genting holds a 20% stake in, is said to be making progress on their Alzheimer drug and is filing for certain approvals in the UK.

I don’t know enough about this to comment, and for the most part I would just assume that this is a moonshot; don’t expect it to contribute anything, but a bonus if it does.

btw If you like what you are reading, please consider to become a paid subscriber 🥹

Closing Thoughts

Genting has been a value trap for years and is not a company I would normally consider buying in especially since the management has a track record of not having minority investors’ best interests in mind.

But at this point in time, the valuation mismatch could be a good opportunity to watch for a valuation recovery. At the same time, the overall businesses are potentially seeing more silver linings starting to appear; yet the market offers prices as if we are still at the worst of the pandemic.

I feel like this is a situation of unwarranted maximum pessimism, and this might be a temporary opportunistic situation provided by Bursa’s lack of liquidity. Any positive newsflow, especially the major news about the New York casino, may cause a sudden valuation rerating back to the average, or even into positive sentiment territory.

If you have any questions (except target prices), feel free to ask in the comments section, or in the group chat and I will try my best to address them.

Stay safe and stay strong investing.

Best Regards,
Ren
DoitDuit

Disclaimer: This article is in no way financial advice, nor solicitation to buy or sell shares in this company. It is purely for educational purposes only. You are highly recommended to conduct all necessary due diligence and make your own informed decisions before making any financial decisions. The writer already owns shares in this company and may at any point in time increase or reduce their position without prior notice. Do not try to copy trade!

So, this is adulting is intended for a single recipient only, but occasional forwarding is totally fine! If you would like to order multiple subscriptions for your team with a group discount (minimum 5), please contact us at [email protected] directly.

Thanks for being a subscriber, and have a great day!