RGB Int'l poised for record earnings amid Philippines, Cambodia expansion

February 13, 2025

RGB Int'l poised for record earnings amid Philippines, Cambodia expansion

Malaysia-based casino supplier RGB International is expected to report its highest quarterly earnings to date, driven by its expansion in key Asian markets. According to the report by The Edge Malaysia, the company is projected to post RM51 million (€10.9 million) in core earnings for the fourth quarter of FY2024, bringing its full-year earnings to RM108 million (€23.8 million), a 91 percent increase year-on-year. The report said the growth stems mainly from completing a major order of 1,968 electronic gaming machines (EGMs) delivered to the Philippine Amusement and Gaming Corporation (PAGCOR), valued at €77.8 million.

Market expansion and growth potential

RGB has positioned itself as a dominant player in the Philippines, with expectations to secure 60 to 70 percent of new EGM orders in the country. According to the report citing the investment memo from Singaporean financial services firm Philip Capital, RGB’s anticipated opening of new integrated resorts (IR), along with the privatisation of PAGCOR’s casino operations set for 2026, will create further demand. The Philippines’ gross gaming revenue (GGR) is forecast to exceed €5.76 billion, surpassing Singapore’s, reinforcing RGB’s potential for continued growth.

Beyond the Philippines, RGB is exploring new opportunities in Asia. The recent legalisation of gambling in the UAE and Japan is expected to expand the total market for EGMs by 17,000 units between 2024 and 2027. The company is projected to sell 4,500 to 5,500 units between 2024 and 2026, benefiting from this regional growth.

Expansion into Cambodia and Thailand

Cambodia, the third-largest EGM market in the region, presents new opportunities for RGB. The company has secured an exclusive agreement with FIRM 614, the sole licenced EGM importer in the country. New regulations requiring casinos to replace outdated gaming equipment by the end of 2024 will further drive demand. While Cambodia has yet to contribute to RGB’s earnings, the planned expansion of integrated resorts, including the NagaWorld development, could increase its market share.

In Thailand, RGB is preparing to enter the market following the government’s approval for casino establishments. The company is setting up a subsidiary to capitalise on future opportunities in the country.

Investment outlook and valuation

Phillip Capital has issued a “buy” recommendation for RGB, with a target price of 71 sen per share. The company’s estimated profit compound annual growth rate (CAGR) of 32 percent from 2023 to 2026 underlines its growth potential. RGB is valued at 5.1 times its projected 2025 price-earnings (P/E) ratio, or 2.9 times when excluding cash. The firm also forecasts a 10 percent dividend yield for 2024, highlighting its financial stability.

With shares of RGB rising by 3.8 percent to RM0.415, the company’s market capitalisation has reached RM642.5 million (€138.5 million). The investment firm stated that the ongoing expansion into emerging gaming markets and its strong foothold in the Philippines position RGB for continued growth in the years ahead.