• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Coming casinos add appeal to cheap Macau stocks: MS

Jan 03, 2020 Newsdesk Latest News, Macau, Top of the deck  


Coming casinos add appeal to cheap Macau stocks: MS

A brokerage has upgraded Macau’s casino industry from “in line” to “attractive” entering 2020, based on “known” upside factors, rather than “unknowns” that might or might not have downside implications.

“Knowns are capacity expansion and cheap valuation,” stated the Thursday report from banking group Morgan Stanley, referring to the advent of new Macau gaming venues in 2020-2021 and the current valuation of Macau gaming stocks.

On the other hand, market consensus was “focused on unknowns – VIP recovery, infrastructure improvement sustaining mass growth and licence decision – all of which may also have bottomed,” suggested analysts Praveen Choudhary, Gareth Leung and Thomas Allen. They were referring latterly to the expected retender process for Macau gaming rights to be occasioned by the expiry in 2022 of the existing rights of Macau’s six incumbent operators.

“Stocks tend to outperform ahead of openings of mega casinos,” the Morgan Stanley team further noted.

The brokerage wrote in its report that when the Macau market saw capacity expansion in second-half 2016 – via the launch of Wynn Palace from Wynn Macau Ltd, and the Parisian Macao from Sands China Ltd; and in first-half 2018 – via MGM Cotai from MGM China Ltd; and Morpheus, a hotel tower at City of Dreams, the Cotai flagship of Melco Resorts and Entertainment Ltd –  “stocks outperformed six months before opening in each case.”

Referring first to SJM Holdings Ltd’s anticipated Cotai resort, and second to an extension to Galaxy Entertainment Group Ltd’s Cotai flagship Galaxy Macau, the analysts stated: “We see SJM’s planned opening of Grand Lisboa Palace (2,000 rooms in first-quarter 2021) and Galaxy’s planned opening of Phase 3 (1,500 rooms in first-half 2021) as catalysts for these two stocks to outperform some time in 2020.”

In August Galaxy Entertainment had mentioned a “late 2020″ launch date for a first portion of phase 3 of Galaxy Macau. The construction budget for Galaxy Macau phase 3 and phase 4 was in the range of HKD45 billion (US$5.8 billion) to HKD50 billion, it was said at the time in commentary from brokerage Sanford C. Bernstein Ltd.

SJM Holdings’ most recent commentary on Grand Lisboa Palace –  its HKD39-billion entry to the Cotai market – is that the resort would launch in “second-half 2020”, but that timetable has been queried by a number of investment analysts.


  • tweet
Related articles
  • Macau casino 4Q 2020 EBITDA up 140pct on 1Q: MS
    Macau casino 4Q 2020 EBITDA up 140pct...

    Jan 13, 2021  

  • Morgan Stanley dips Macau 2021 GGR outlook on weaker VIP
    Morgan Stanley dips Macau 2021 GGR...

    Jan 08, 2021  

More news
  • Wakayama casino RFP deadline affirms 2 suitors still in race
    Wakayama casino RFP deadline affirms 2...

    Jan 18, 2021  

  • CNY 2021 unlikely to boost Macau casinos, say observers
    CNY 2021 unlikely to boost Macau...

    Jan 15, 2021  


Latest News

Wakayama casino RFP deadline affirms 2 suitors still in race

Wakayama casino RFP deadline affirms 2 suitors still in race

Jan 18, 2021  

Japan’s Wakayama prefecture confirmed on Friday (January 15) that no new suitors interested in being private-sector partner for the local government’s tilt at a casino resort, had come forward to...
Read More
CNY 2021 unlikely to boost Macau casinos, say observers

CNY 2021 unlikely to boost Macau casinos, say observers

Jan 15, 2021  

Mass market play record 65pct Macau GGR in 4Q: govt

Mass market play record 65pct Macau GGR in 4Q: govt

Jan 15, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The most worrying [thing] is whether [mainland] China will again tighten the issuance of travel visas [for visits to Macau]"

Luiz Lam Kai Kuong

Macau junket investor



Most Popular

  • Sheldon Adelson, self-declared casino industry iconoclastSheldon Adelson, self-declared casino industry iconoclast January 13, 2021
  • Quality fake chips sold online found at Macau casinoQuality fake chips sold online found at Macau casino January 13, 2021
  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino entrepreneur Sheldon Adelson dies aged 87Casino entrepreneur Sheldon Adelson dies aged 87 January 12, 2021
  • Police find US$11m of missed Landing cash, suspects soughtPolice find US$11m of missed Landing cash, suspects sought January 14, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us