[ET Net News Agency, 12 November 2019] Jefferies Research citing its sources said that
November GGR in Macau as of 10 November was estimated to be MOP750m per day, with on-going
VIP weakness offset only partially by stronger mass.
The research house's sources estimated November GGR to be MOP22.1-23.1bn or 8%-12%
decline. Based on the mid-point, this outcome would be lower than 2017 levels and would be
disappointing.
Jefferies added that December's GGR could reflect volatility/uncertainty due to Macau's
new Chief Executive officially taking office, but it believes the market could shift focus
to 2020.
Jefferies said valuation levels for the stocks are toward the lower end of the
historical range which implies they are largely risk-adjusted. It favors Wynn Macau
(01128) and Sands China (01928) longer-term. Although it believes Sands China's earnings
are likely to be impacted by renovations of Sands Cotai Central/Londoner, the higher
exposure to mass and non-gaming should outweigh this impact. (KL)