Macau Consumer Discretionary 30 July 2019 Macau Gaming Trading on US-China trade tensions Four themes: 1) visa policy support, 2) GBA development, 3) operator promotions with SOEs, and 4) Chinese gamers’ preference for Macau GGR for May (+1.8% YoY) and June (+5.9% YoY) moved into positive Andrew Chung, CFA territory; we expect growth to accelerate in 2H19 (852) 2773 8529 Maintain positive sector view; stock preference: Sands China, Galaxy
[email protected] Entertainment, Melco Resorts, MGM China, SJM and Wynn Macau Terry Ng (852) 2773 8530
[email protected] See important disclosures, including any required research certifications, beginning on page 129 Macau Consumer Discretionary 30 July 2019 Macau Gaming Trading on US-China trade tensions Four themes: 1) visa policy support, 2) GBA development, 3) operator promotions with SOEs, and 4) Chinese gamers’ preference for Macau GGR for May (+1.8% YoY) and June (+5.9% YoY) moved into positive Andrew Chung, CFA territory; we expect growth to accelerate in 2H19 (852) 2773 8529 Maintain positive sector view; stock preference: Sands China, Galaxy
[email protected] Entertainment, Melco Resorts, MGM China, SJM and Wynn Macau Terry Ng (852) 2773 8530
[email protected] What's new: We see 4 major investment themes emerging for the Macau Key stock calls Gaming Sector amidst ongoing US-China tensions: 1) extended easing of New Prev. domestic travel visa policies, 2) Greater Bay Area (GBA) development in Sands China (1928 HK) Rating Buy Buy improving immigration checkpoint procedures and logistics between Macau Target 50.10 45.60 and GBA cities, 3) continuous collaboration between SOEs and Macau Upside p 27.3% gaming operators, and 4) more Chinese gaming patrons potentially Galaxy Entertainment Group (27 HK) preferring Macau over US gaming destinations.