Nomura Securities on Macau June Gaming Revenues: Misses Expectations, July & August Get Tougher
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Rating Summary:
18 Buy, 7 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
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Nomura Securities on Macau June Gaming Revenues: First Look
Analyst, Harry C. Curtis, said, "June gaming revenues were MOP23.3B, up 12.2% YOY, below expectation of ~15%. For the week ended 6/30, average daily table win declined to ~HKD620m, down from prior week’s ~HKD678m. We believe VIP revenues were up ~10% YOY for the month. No major shift in table win share from the prior week.
All eyes on July & August: Curtis said, "comps get tougher in July and August (seasonal factors and Galaxy Macau’s strong opening last year), so any potential improvement in average weekly table win could take longer to ramp."
Curtis continues to favor three gaming stocks longer-term: "We remain constructive on Las Vegas Sands (NYSE: LVS), MGM (NYSE: MGM) and Wynn (Nasdaq: WYNN) (all Buy-rated) for several reasons: 1) positive supply/demand imbalance; 2) infrastructure improvements to Macau, 3) more optimistic China macro outlook (our China Economist believes chances of a hard landing in China is low and he expects GDP growth to moderately rebound in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (~9-10% yield) on 2013E free cash flow."
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Analyst, Harry C. Curtis, said, "June gaming revenues were MOP23.3B, up 12.2% YOY, below expectation of ~15%. For the week ended 6/30, average daily table win declined to ~HKD620m, down from prior week’s ~HKD678m. We believe VIP revenues were up ~10% YOY for the month. No major shift in table win share from the prior week.
All eyes on July & August: Curtis said, "comps get tougher in July and August (seasonal factors and Galaxy Macau’s strong opening last year), so any potential improvement in average weekly table win could take longer to ramp."
Curtis continues to favor three gaming stocks longer-term: "We remain constructive on Las Vegas Sands (NYSE: LVS), MGM (NYSE: MGM) and Wynn (Nasdaq: WYNN) (all Buy-rated) for several reasons: 1) positive supply/demand imbalance; 2) infrastructure improvements to Macau, 3) more optimistic China macro outlook (our China Economist believes chances of a hard landing in China is low and he expects GDP growth to moderately rebound in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (~9-10% yield) on 2013E free cash flow."
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