Technical tracker - HLIB Retail Research – 4 October 2021 GEN | HLeBroking

Technical tracker - HLIB Retail Research – 4 October 2021

GENM (RM2.99-BUY-Rated) – It’s time for a comeback

HLIB maintained a BUY call in GENM with a target price of RM3.28 as the long-term recovery remains intact. Going forth, while we reckon near-term earnings will remain dicey, GENM’s prospect is set to improve in anticipation of exponential recovery once the Covid-19 cases in Malaysia is under control, underpinned by promising vaccination status (adult population vaccination rate stood at ~88% on 3 Oct) and hopes of travel restriction to be lifted as early as Nov

May breakeven in 4Q21. To recap, PM earlier proposed to allow more tourist destinations to reopen to local travellers, lifting its inter-state travel ban once at least 90% of its adult population are vaccinated. Overall, market is likely to look beyond a washout 3Q21 but bracing for a breakeven 4Q21, premised on the reopening of Resort World Genting (RWG) effective 1 Oct and probably the Genting SkyWorlds theme park in Dec 2021 to coincide with the school holidays (to attract both gaming and non-gaming visitors), as well as the strong earnings rebound from US/UK operation.

Pending for a symmetrical triangle breakout. After surging from RM2.69 (5 Aug low) to a high of RM3.19 (7 Sept), the stock eased 6.2% to close at RM2.99 last Friday. We expect GENM to find a sound support near RM2.90-2.99 zones as investors continue to weigh on recovery theme in the gaming and tourism sectors, as accelerating vaccination program towards full vaccination by end Oct should likely relax business operating and movement restrictions. Technically, GENM is pending for a symmetrical triangle breakout. A successful breakout above its downtrend line resistance (RM3.16) will spur the price toward RM 3.19-3.31-3.42 levels. Cut lost at RM2.86.

Collection range: RM2.90-2.95-2.99

Upside targets: RM3.19-3.31-3.42

Cut: RM2.86

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Technical tracker (中文版) - HLIB Retail Research – 4 October 2021

GENM (RM2.99-BUY-Rated) –期盼即将到来的复苏之路

HLIB维持对GENM的买入评级，目标价为RM3.28，主要因为我们认为长期复苏的道路仍然保持乐观。展望未来，虽然短期内公司的业绩仍然存在不确定性，若政府能够有效的控制疫情，GENM 的业绩将有所改善，因为一旦马来西亚的 确诊病例得到控制以及成年人接种率维持目标内（10 月 3 日已经达到88%），马来西亚有望在 11 月取消旅行上的限制。

GENM可能在2021 年第 4 季度转亏为盈，主要因为政府提议在90% 的成年人接种疫苗就会解除州跨州的旅游禁令，并允许更多的旅游景点获得重新开放。总体而言，GENM的曙光可能会在2021 年第四季度实现转亏为盈。这主要因为云顶名胜世界 (RWG) 于 10 月 1 日重新开放后，云顶天空世界主题公园可能也会在 2021 年 12 月在学校假期时开放（将吸引赌博和非博彩游客）。此外美国/英国业务也将随着疫情好转出现强劲反弹。

GENM 股价目前正处于有待突破三角形态的阶段。股价在从 RM2.69 （8 月 5 日的低点）反弹至 RM3.19 （9 月 7 日）的高位后，股价回调了 6.2%并在上周五收在RM 2.99 。我们预计 GENM 短期内将在 2.90 至 2.99区域得到支撑，主要市场将继续看好博彩业和旅游业的复苏主题。从技术上讲，GENM 若成功突破其下降趋势线（阻力：RM3.16 ）股价有望上探至RM 3.19-3.31-3.42。投资者可以把止损设置在 RM2.86。

买入范围：RM2.90-2.95-2.99

上行目标：RM3.19-3.31-3.42

止损：RM2.86

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