Macau Is Rocking in August - Analyst (LVS) (MGM) (WYNN) (MPEL)
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Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Reports of Macau's death may be greatly exaggerated...
This according to new research from Sterne Agee's David Bain, showing a large uptick in trends in Macau for August.
"According to our checks, Macau table-only GGR is MOP15.97b through August 19. Including slots, August’s full run-rate is MOP27.1b or +~9% YoY," Bain said. "The current run-rate indicates the potential for an all-time monthly GGR record."
He said last week's daily table GGR averaged MOP1.02b versus the first 12 days' average of MOP732m and versus first 6 days of August average of MOP689m. He notes the first six days of August were hurt by hold, among other things.
Bain expects Macau sentiment to improve with August's expected year-over-year gain of 7%, versus 1.5% in July. September could end close to up 9% year-over-year, which could be boosted higher "with the Phase 2 opening of Cotai Central. Subsequently, Macau benefits from National Day Golden Week (October 1 – 7, M – Sun), which kicks off the seasonally strongest quarter of the year," the analyst notes.
"In addition, during 4Q12, the North Gongbei Gate expansion should be completed, increasing daily capacity to 500,000 from 300,000. Further, the Guangzhou Zhuhai intercity mass rapid transit should be fully operational by then end of the year. Guangzhou is the largest feeder from Mainland China to Macau. Finally, additional loosening measures in China and a likely China GDP stabalization/rebound should fuel BH VIP growth," the analyst adds.
The comments have implications for Las Vegas Sands Corp. (NYSE: LVS) (+3.9%), Melco Crown (NASDAQ: MPEL) (+5%), Wynn Resorts Ltd. (NASDAQ: WYNN) (+2.6%) and MGM (NYSE: MGM) (+1%), among others.
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This according to new research from Sterne Agee's David Bain, showing a large uptick in trends in Macau for August.
"According to our checks, Macau table-only GGR is MOP15.97b through August 19. Including slots, August’s full run-rate is MOP27.1b or +~9% YoY," Bain said. "The current run-rate indicates the potential for an all-time monthly GGR record."
He said last week's daily table GGR averaged MOP1.02b versus the first 12 days' average of MOP732m and versus first 6 days of August average of MOP689m. He notes the first six days of August were hurt by hold, among other things.
Bain expects Macau sentiment to improve with August's expected year-over-year gain of 7%, versus 1.5% in July. September could end close to up 9% year-over-year, which could be boosted higher "with the Phase 2 opening of Cotai Central. Subsequently, Macau benefits from National Day Golden Week (October 1 – 7, M – Sun), which kicks off the seasonally strongest quarter of the year," the analyst notes.
"In addition, during 4Q12, the North Gongbei Gate expansion should be completed, increasing daily capacity to 500,000 from 300,000. Further, the Guangzhou Zhuhai intercity mass rapid transit should be fully operational by then end of the year. Guangzhou is the largest feeder from Mainland China to Macau. Finally, additional loosening measures in China and a likely China GDP stabalization/rebound should fuel BH VIP growth," the analyst adds.
The comments have implications for Las Vegas Sands Corp. (NYSE: LVS) (+3.9%), Melco Crown (NASDAQ: MPEL) (+5%), Wynn Resorts Ltd. (NASDAQ: WYNN) (+2.6%) and MGM (NYSE: MGM) (+1%), among others.
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