Citigroup's research report points out that the performance of Genting (03918.HK) in the second quarter of this year is lower than expected, with a year-on-year increase of 2% in gambling revenue, a 5% decrease compared to the previous quarter, and a 22% year-on-year decrease in EBITDA. Even after excluding the impact of one-time items, the recurring EBITDA recorded about $80 million, which is about 11% lower than the bank's expectations. The main reason is that the volume of high-end VIP and mass-market business during the period is lower than expected.

Citigroup pointed out that the mid-market revenue of Genting in the second quarter is still below the pre-pandemic level, and its performance is not as expected compared to its peers in the region. It is believed that the continued addition of high-quality gambling and non-gambling supply in locations such as Macau, Singapore, Malaysia, the Philippines, and South Korea has led to a relative decline in the competitiveness of Genting. The bank estimates that until the phased opening of the Naga 3 project in Phnom Penh in 2029, Genting may continue to lose market share in the next few years. It continues to give Genting a "sell" rating and reduces its profit forecast for 2024 to 2026 by 16% to 20%. The target price is lowered from HK$3 to HK$2.95.