Date
23 August 2017
JPMorgan is upbeat on Macau's casino operators despite some headwinds brought about by China’s anti-graft and austerity campaign. Photo: Bloomberg
JPMorgan is upbeat on Macau's casino operators despite some headwinds brought about by China’s anti-graft and austerity campaign. Photo: Bloomberg

Macau gaming revenue seen picking up in second-half 2015

Macau’s gaming revenue growth will revive in the second half of 2015 following a sharp slide in the key VIP segment in recent months, according to JPMorgan Chase & Co.

The investment bank said in a report that it is optimistic about the long-term prospects of the sector, and deems Macau firms as the top gaming stocks in Asia, Ming Pao Daily reported.

JPMorgan feels mass gaming revenue could be doubled in four years from the current level, according to a separate report in the Hong Kong Economic Journal.

The remarks came as Wynn Macau Ltd. (01128.HK) released its quarterly report on Wednesday. Net profit of the company dropped 8.2 percent to US$ 220.86 million in the third quarter compared with same period last year.

VIP segment continued to be weak as the segment’s turnover fell 17.4 percent to US$25.1 billion, while the mass market segment saw revenue climb 36.4 percent to US$327.2 million during the period, according to a regulatory filing.

Credit Suisse cited senior management of Wynn Macau as saying that there is room for some caution as China’s anti-graft campaign has had some impact on mainland visitors.

Despite the lackluster results in the quarterly report, Wynn shares surged 4.9 percent to HK$28.05 on Wednesday.

Other gaming counters also performed well, with Galaxy Entertainment Group (00027.HK) and Sands China (01928.HK) gaining 6.3 percent and 5 percent respectively, making them the best performing blue chips on the day.

But on Thursday, the sector saw a mild correction, with five among the six major gaming stocks retreating 0.2-1.2 percent in the morning session.

– Contact us at english@hkej.com

JH/JP/RC

EJ Insight reporter

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