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Business Times
09-06-2025
- Business
- Business Times
How the Lim family built Genting's global empire from Malaysia
[KUALA LUMPUR] Investor confidence in the Genting Group has come under pressure in recent months, as weak earnings, surprise leadership changes, corporate governance woes and mounting capital commitments triggered sharp sell-offs across its listed entities. As of June 9, shares across Genting's four listed arms had declined by between 8.4 and 18.2 per cent in the year to date. Genting Singapore posted the smallest drop at 8.4 per cent, and Genting Berhad (Genting), the group's holding company, led the losses with an 18.2 per cent fall, followed by Genting Plantations (15.4 per cent) and Genting Malaysia (11.1 per cent). Among the recent changes was executive chairman Lim Kok Thay's taking on the role of acting chief executive officer at Genting Singapore on Jun 1, following the surprise retirement of long-serving chief executive Tan Hee Teck in May. The news raised fresh questions about the group's next strategic steps, especially because leadership is being temporarily centralised under Lim. Concurrently, Lee Shi Ruh, the current president of RW Sentosa, will step into the property's CEO position. These developments came just months after a milestone moment in March 2025, when Genting appointed Tan Kong Han, a non-family executive, as CEO of Genting, marking the first time operational control of the holding company shifted outside the Lim family. Despite this, the dynasty remains deeply influential at the board level. Lim Kok Thay continues to hold key roles across the group as executive chairman of Genting and Genting Singapore, deputy chairman and CEO of Genting Malaysia, as well as deputy chairman and executive director of Genting Plantations. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up While some investors view the leadership transitions as a step toward professionalisation, others are cautious, seeing the consolidation of control as a sign of the group's continued reliance on centralised family leadership. The dynamic that has shaped Genting From its roots as a solitary hilltop casino in Malaysia's Genting Highlands in Pahang – about an hour's drive from the capital city of Kuala Lumpur – Genting Group has grown into one of South-east Asia's most recognisable multinationals. Today, its sprawling empire spans gaming, hospitality, plantations, power and biotech, which can be confounding. Behind the brand lies a complex web of listed entities, family control and capital-intensive operations that make it a mixed bag for investors. Each Genting-listed arm presents different investment propositions, depending on an investor's appetite. For growth-centric investors, Genting Malaysia or Genting Singapore may be a draw, given their exposure to a rebound in tourism and gaming. Those seeking stable dividends may find Genting Plantations or the Singapore-listed unit more attractive. As Genting plots its post-pandemic recovery and weighs long-term leadership succession, attention is turning to where the real value proposition with the lowest risk lies. The Business Times unpacks how the Genting empire stacks up as leadership shifts and capital needs put its sprawling structure under the spotlight. A multi-layered conglomerate The Genting Group is anchored by Genting, its holding company listed on Bursa Malaysia. Through its trio of publicly traded entities, Genting Malaysia, Genting Plantations and Genting Singapore, the group is involved in distinct business lines and geographical markets. Beyond the bourse, key unlisted subsidiaries such as Genting Energy and Resorts World (RW) Las Vegas extend the group's reach into power generation and the heart of the US gaming industry. Established in 1965 as a one-resort operation in Malaysia, Genting has since expanded its footprint to nine countries, employing around 54,000 people globally. PHOTO: BT FILE Genting holds majority stakes in Genting Malaysia, which operates the iconic RW Genting in Malaysia's highlands, along with casinos in New York and the UK. Genting Singapore owns RW Sentosa, one of only two integrated resorts with a casino licence in Singapore. Genting Plantations is a mid-sized palm-oil producer with extensive plantations in Malaysia and Indonesia. The group's international portfolio once featured Genting Hong Kong, a cruise ship operator under the Dream and Star brands. But that collapsed and was liquidated in 2022, felled by the pandemic. Beyond its core operations, Genting has made strategic bets in life sciences and biotech – investing in firms such as Celularity, CorTechs Labs, DNAe Group and Human Longevity. Genting Ventures, the group's venture arm, invests in early-stage, disruptive technologies aligned with its core sectors: gaming, entertainment, hospitality, agriculture and energy. Kien Huat Realty – the Lim family's private investment vehicle led by Lim Kok Thay – serves as their principal holding and investment arm. Often referred to as Kien Huat or Kien Huat Realty III, it holds significant stakes across Genting's listed entities and affiliated businesses. In a 2017 interview with The Peak, Lim Kok Thay said: 'Our founder has always said that if the relationship is not good or the investment climate of a country is not correct, it is not worth getting into, even if you make money. That value has held us up well.' Lim's family and succession plan The legendary tycoon Lim Goh Tong transformed a remote jungle in Pahang into the iconic Resorts World Genting. PHOTO: RESORTS WORLD GENTING Genting Group was founded in 1965 by the late Lim Goh Tong, Malaysia's 'casino king', whose bold vision transformed a remote jungle in Pahang into the country's only casino resort. He passed leadership of Genting Group to Lim Kok Thay, his second son, who became chairman in 2003. When the senior Lim died in 2007, he left behind six children: three sons – Lim Tee Keong, Lim Kok Thay and Lim Chee Wah – and three daughters – Lim Siew Lay, Lim Siew Lian and Lim Siew Kim. Apart from Lim Kok Thay, better known as KT Lim in corporate circles, none of Lim Goh Tong's children hold executive or official positions within Genting Group's core businesses currently. The late Lim's eldest son, Lim Tee Keong, was previously involved in the family business but faced bankruptcy; he died in 2014. Following his financial difficulties, control of his family trust was transferred to his brothers, Lim Kok Thay and Lim Chee Wah. Lim Chee Wah, while prominent within the family, holds no position within Genting's companies. The daughters have similarly remained outside the group's management, although Lim Siew Kim was previously involved in legal disputes over family assets. Genting Group chairman Lim Kok Thay playing baccarat at the soft opening of Singapore's first casino at RW Sentosa complex in 2010. PHOTO: BT FILE Under Lim Kok Thay's stewardship, Genting expanded internationally, launching major integrated resorts in Singapore, the US, UK and beyond, while diversifying into plantations, power and biotechnology. With an estimated net worth of US$1.8 billion, Lim Kok Thay was ranked 14th on Forbes' 'Malaysia's 50 Richest' list for 2025. The third generation is represented by Lim Keong Hui, Lim Kok Thay's son. Currently serving as deputy chief executive and executive director at both Genting and Genting Malaysia, he is widely viewed as the successor to the Genting empire. Beyond Genting and Genting Malaysia, he assumed the role of CEO of Genting Plantations in March, following Tan Kong Han's transition to a broader role within the group. Lim Keong Hui, son of Lim Kok Thay, is widely viewed as the successor to the Genting empire. PHOTO: GENTING PLANTATIONS A look at the numbers Despite a strong rebound in 2024, Genting Group's net profit and revenue declined in the first quarter of 2025, primarily due to lower contributions from its vital leisure and hospitality segment. Chairman Lim Kok Thay, offering his outlook for 2025 in Genting's 2024 annual report, said he expected uneven global economic growth for 2025, with differing trends between advanced and emerging markets. While Malaysia's economy is expected to grow, supported by domestic demand, it remains subject to global and local uncertainties, alongside inflationary pressures. 'The international tourism sector is forecast to remain robust, driven by strong demand and continued global travel recovery, positioning the regional gaming market for sustained upward momentum,' he said. Overall, Genting's revenue and earnings have risen steadily over the past five years, largely propelled by strong performances in Singapore and Malaysia. The leisure and hospitality segment consistently contributes more than 80 per cent of the group's revenue and earnings. Plantations add about 10 per cent, and the remainder comes from its energy and other diversified segments, based on Genting's 2024 annual report. What analysts are closely watching Valuation unlocking: A longstanding analyst speculation is that Genting may restructure or list its energy unit to unlock value and narrow the conglomerate discount. Dividend sustainability: While Genting Singapore delivers consistent payouts, Genting Malaysia's dividends hinge on regulatory clarity and cash-flow strength. Capex versus returns: Genting Malaysia's US expansion and Genting Singapore's Sentosa revamp demand hefty capital outlay, with investors eyeing execution risks and potential returns. Commodity exposure: Fluctuations in crude palm oil and energy prices could impact earnings from Genting Plantations and Genting Energy, affecting group contributions. Legal disputes: Genting Malaysia has a history of lawsuits. It is currently being sued by its former Bahamian partner for US$600 million. Key catalyst: Regulatory approval for the drug for Alzheimer's developed by 20 per cent-owned TauRx Pharmaceuticals. Operational challenges in the UK and US, particularly stemming from loss-making Empire Resorts, are expected to weigh on Genting's earnings for the year.
The Star
09-06-2025
- Business
- The Star
FBM KLCI edges up at midday amid cautious market sentiment
KUALA LUMPUR: Bursa Malaysia ended the morning session on a firmer note, with the FBM KLCI edging higher amid cautious market sentiment and lingering external headwinds. At the lunch break, the benchmark FBM KLCI rose 3.37 points, or 0.22%, to 1,520.16, after touching an intraday high of 1,521.64. There were 437 gainers, 370 losers and 425 counters traded unchanged on the Bursa Malaysia. Turnover stood at 1.68 billion shares valued at RM888.4mil. TA Securities said immediate resistance for the FBM KLCI remained at 1,564, with stronger hurdles at the recent high of 1,586 and then 1,610. Immediate support is at 1,490, with firmer support at 1,465 and 1,444. 'As for stock picks this week, key gaming, banking, construction, and technology heavyweights and lower liners such as Genting, Genting Malaysia, Maybank, Public Bank, MRCB, WCT Holdings, Globetronics, and Inari should again attract bargain hunters looking for potential recovery at current oversold levels,' it added. Meanwhile, Hong Leong Investment Bank Research said the FBM KLCI may continue to trend sideways with a slight upward bias, supported by last week's constructive call between Trump and Xi and the commencement of the second round of US-China trade talks in London today. That said, it noted that broader market sentiment remained cautious amid ongoing foreign outflows, uncertainty over the US-Malaysia tariff deal, and June's historically weak seasonality. 'Concerns are further amplified by a weakening global trade environment, ongoing macroeconomic headwinds, the Trump administration's unpredictable trade stance, and the potential for domestic subsidy rationalisation in 2H25 — all of which may cloud Malaysia's growth and earnings outlook,' it said. On Bursa Malaysia, Malaysian Pacific Industries led the gainers, climbing 70 sen to RM20.90. Ayer rose 36 sen to RM7.60, Chin Tek added 30 sen to RM9.10 and F&N climbed 26 sen to RM27.64. Meanwhile, the top decliner was Nestle, which lost RM2.48 to RM74.64. PETRONAS Dagangan fell 36 sen to RM20.64, LPI Capital eased 26 sen to RM14.64 and United Plantations gave up 22 sen to RM21.42. Hartanah Kenyalang saw active trading on its ACE Market debut, with 16.67 million shares changing hands as the stock eased 0.5 sen to 15.5 sen.
The Star
03-06-2025
- Business
- The Star
Rising number of tourists to lift Genting's earnings
PETALING JAYA: As Genting Bhd began its new financial year with a disappointment amid lacklustre performances from all its gaming units, analysts have downgraded their earnings projections for the stock. Nevertheless, the market remains bullish on the conglomerate, with the majority of analysts keeping a 'buy' call. In fact, UOB Kay Hian Research (UOBKH Research) upgraded its rating to 'buy' after Genting's results announcement on May 29. Genting, which dropped off the FBM KLCI list last December, saw lower than-expected contributions from gaming operations in Singapore, Malaysia, Britain and the United States in the first quarter of the year (1Q25). Despite higher contributions from the plantations and power businesses, Genting's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped 22.7% year-on-year (y-o-y) to RM2bil with revenue dropping 12.4% y-o-y to RM6.5bil. Following this, TA Research cut its earnings for this year (FY25) by 47% and 68% for FY26. This was done after revising lower the earnings forecasts for Genting Singapore Ltd and Resorts World Las Vegas, as well as incorporating Genting Malaysia Bhd 's (GenM) revised earnings projections. UOBKH Research, on the other hand, believes GenM's profitability remains intact. However, it said it thinks that unfavourable capital management, a potential capital expenditure upcycle that may pressure gearing, and finance costs may result in longer period of valuations de-rating. 'Key re-rating catalysts include winning another New York casino tender. With the share price correcting 19% year-to-date, valuations appear depressed below the mean with a palatable 5.5% to 7% dividend yield,' the research house said. Hong Leong Investment Bank Research (HLIB Research) said it has cut its earnings forecast for Genting by 26% for FY25 and 27.6% for FY26. HLIB Research, which is one of the research houses that has cut its target price for the Genting, continues to like Genting for its well-established operational presence across diverse regions, mitigating regulatory and geographical risks. Going forward, it expects Genting to benefit from the stronger tourist arrivals in both Singapore and Malaysia. 'Besides, Genting has the potential value-add with its stake in TauRx Pharmaceutical Ltd in Scotland if its drug, hydromethylthionine mesylate (HMTM) receives US Food and Drug Administration approval.' Genting has a 20.3% stake in the pharmaceutical company. On GenM, Kenanga Research expects the company to see 'better days beyond FY25'. It said Resorts World Genting is seeing more local visitors, along with Singaporeans and Indonesians. Mainland Chinese and Indian tourists are also expected to increase as Malaysia builds up momentum towards welcoming 36 million visitors in Visit Malaysia 2026. 'The Ebitda margin is expected to improve marginally and gradually from current 26% towards 27% to 25% over FY25 to FY26 on improving visitor numbers. 'GenM's US operations should see softer but still firm earnings from Resorts World New York City on rising risk of slower local economic growth coupled with full consolidation of still loss-making Empire Resorts Inc. 'The group's British and Egypt operations are also expected to report firm earnings with rising risk of some softening,' added Kenanga Research.
The Star
30-05-2025
- Business
- The Star
Bursa stays uninspired on final day of results season
KUALA LUMPUR: The sluggish sentiment on Malaysia's stock market continued on Friday, with the earnings announcements of the past week doing little to halt the corrective pressure. While the FBM KLCI gained 2.24 points to 1,521.22 at the start of the day's trading, the weak momentum indicates the index could yet close in the red, ending the week on a five-day losing streak. There was some buying interest on Wall Street overnight, bolstered by forecast-beating earnings from the likes of Nvidia, although the ongoing confusion over the legal validity of US President Donald Trump's trade tariffs weighed on sentiment. The US rally has done little to spur the interest of Malaysian investors given the absence of fresh domestic leads, especially as the corporate earnings season comes to an end this week with little fanfare. According to Rakuten Trade, the recent sell-down on the local market could be attributed to the flight of funds back to the Hong Kong market, which has been on a tear on hopes of easing trade tension. "For today, we expect bargain hunting activities to emerge if and when the index ease closer to the 1,500 mark thus anticipate it to trend between the 1,510-1,525 range," said the broker in a note. Companies that announced their earnings in after-trading hours yesterday include KPJ down 18 sen to RM2.78, MPI falling 16 sen to RM19.70 and Genting dropping 11 sen to RM3.02. Egg and poultry producer Leong Hup rose 0.5 sen to 61.5 sen while sector rival QL Resources dropped two sen to RM4.52. On the actives list, Velesto was unchanged at 18.5 sen, Nationgate jumped six sen to RM1.50 and Eco-shop rose five sen to RM1.24. Trading ideas: SunCon, Vestland, PeterLabs, TWL, UEM Edgenta, IJM, Genting, Carlsberg, KPJ, QL, Farm Fresh, IHH, LHI
New Straits Times
29-05-2025
- Business
- New Straits Times
Genting's Q1 earnings plunge to RM4.5mil versus RM588.7mil a year ago
KUALA LUMPUR: Genting Bhd's net profit tumbled to RM4.57 million in the first quarter to March 31 2025 from RM588.87 million a year ago. Group revenue stood at RM6.51 billion, down 12 per cent from the previous year's corresponding quarter of RM7.43 billion. Genting attributed the lower revenue mainly to the leisure and hospitality division. The group's adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) for Q1 2025 of RM1.99 billion was lower than the RM2.57 billion posted in Q1 2024. The strengthening of the ringgit against Singapore dollar, pound sterling and US dollar partly contributed to the lower group revenue and Ebitda. Genting said Resorts World Sentosa (RWS) recorded lower revenue and profit. "The results for Q1 2025 was affected by a lower VIP rolling win rate and the temporary closure of Hard Rock Hotel for renovation and rebranding works, which led to a reduction in available room inventory. "RWS' performance was also weaker in comparison with Q1 2024 where Singapore saw stronger visitorship and tourism spending during the Chinese New Year festive season along with the relaxation of visa regulations between China and Singapore in February 2024." Resorts World Genting (RWG) recorded lower revenue over 1Q24, due to the timing of the festive season and lower business volumes in the premium players segment in Q1 2025. Revenue from the group's leisure and hospitality businesses in the United Kingdom and Egypt was lower due to strengthening of the ringgit against pound sterling. However, a lower Ebitda was recorded primarily due to higher operating and payroll related expenses in Q1 2025. The leisure and hospitality businesses in the United States of America and Bahamas included the inancial results of Resorts World New York City (RWNYC), Resorts World Bimini (RW Bimini) and Resorts World Las Vegas (RWLV). Revenue recorded by RWNYC was lower due to stronger ringgit against the US dollar. RWLV's revenue and Ebitda were impacted by lower hold percentage and lower visitation compared with the record visitation benefited from NFL Super Bowl event in Q1 2024. Hotel occupancy and average daily rate in Q12025 were 82.3 per cent and US$274 respectively compared with 89.1 per cent and US$298 in Q1 2024. Genting said its performance for the remaining period of the 2025 financial year may be impacted by the global economic conditions and market volatility. "In Malaysia, economic growth is expected to expand at a slower pace as heightened geopolitical tensions continue to weigh on both domestic and global sentiments. "Despite ongoing global uncertainties, demand for international tourism is expected to remain resilient, although recovery is anticipated to be uneven across regions. Consequently, the regional gaming market may face increasing challenges," it added. In Malaysia, the group remains focused on enhancing RWG's appeal as a regional tourism hub by introducing new facilities and attractions, including new ecotourism experiences at Genting Highlands. "Celebrations to commemorate the Genting Group's 60th anniversary are underway, featuring a variety of special events, promotions and activities designed to engage visitors and enrich their experience at RWG," it added.
