Nomura Securities on Macau August Month-To-Date Gaming Revenues: Implied 7% Growth
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Price: $46.73 +1.65%
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
21 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on Macau August Month-To-Date Gaming Revenues
Analyst, Harry Curtis, said, "The first 26 days of August gaming revenues imply ~MOP26.5b for the month, which would imply up ~7% YoY growth, which is largely in line with the mid-point of consensus expectations. For the week ended Aug 26, average daily table win declined to ~HKD775m vs. the prior week’s ~HKD996m. Las Vegas Sands (NYSE: LVS) is the biggest beneficiary of mass growth, as it has the most mass capacity in Macau among the large-cap names under our coverage. September is an easy comp and we are looking for low-to-mid teen growth for the month. Market share largely remained unchanged from the prior week."
"Longer term, we remain constructive on 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 that the likelihood of a hard landing in China is low, and he expects GDP growth to rebound moderately in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (~8-10% yield) on 2013E free cash flow for LVS and WYNN."
Analyst, Harry Curtis, said, "The first 26 days of August gaming revenues imply ~MOP26.5b for the month, which would imply up ~7% YoY growth, which is largely in line with the mid-point of consensus expectations. For the week ended Aug 26, average daily table win declined to ~HKD775m vs. the prior week’s ~HKD996m. Las Vegas Sands (NYSE: LVS) is the biggest beneficiary of mass growth, as it has the most mass capacity in Macau among the large-cap names under our coverage. September is an easy comp and we are looking for low-to-mid teen growth for the month. Market share largely remained unchanged from the prior week."
"Longer term, we remain constructive on 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 that the likelihood of a hard landing in China is low, and he expects GDP growth to rebound moderately in H2’12, helped by modest easing in 2012); and 4) valuations that look attractive (~8-10% yield) on 2013E free cash flow for LVS and WYNN."
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