Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Equity Bottom-Up

Galaxy Entertainment Group / Equity Bottom-Up

<ul>
<li>The company's performance clearly shows its mass segment focus is paying off.</li>
<li>Underlevered is MICE target on its Phase 3 and 4 expansions will reward shareholders. Beijing will like its appeal to family tourism.</li>
<li>The SBM deal could bring the Monte Carlo brand to Japan or other new markets.</li>
</ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/554/original/Galaxy-Entertainment-Group-Mr.-Francis-Lui-Vice-Chairman.jpg?1502713984" class="editor-image img-responsive" data-smartkarma-image-id="31554"></figure><div class="content-caption">Mr. Francis Lui, Vice Chairman, CEO, Galaxy</div>For all its dominance as the global giant of casino gaming, Macau is a market controlled by 6 concessionaires. And within that charmed circle, only a handful of…


The company's performance clearly shows its mass segment focus is paying off.
Underlevered is MICE target on its Phase 3 and 4 expansions will reward shareholders. Beijing will like its appeal to family tourism.
The SBM deal could bring the Monte Carlo brand to Japan or other new markets.
Mr. Francis Lui, Vice Chairman, CEO, GalaxyFor all its dominance as the global giant of casino gaming, Macau is a market controlled by 6 concessionaires. And within that charmed circle, only a handful of…

Galaxy's Mass Focus Worthy of Stronger Valuations Even if Macau Recovery Slows Against 2016 Comps

ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Thematic (Sector/Industry)

<ul><li>Our field trip to Las Vegas suggests a vibrant, lively entertainment city.</li><li>Downtown Las Vegas, not the Strip, is the key positive surprise in that an old town can be rejuvenated into a robust "experiential consumption" story.</li><li>Meeting take-away indicates that the U.S. gaming companies are more bullish on international markets.</li><li>Macau is the clear front-runner in following Las Vegas's footsteps in the latter's evolution into a family entertainment center (prolonging the growth story).</li></ul>

Our field trip to Las Vegas suggests a vibrant, lively entertainment city.Downtown Las Vegas, not the Strip, is the key positive surprise in that an old town can be rejuvenated into a robust "experiential consumption" story.Meeting take-away indicates that the U.S. gaming companies are more bullish on international markets.Macau is the clear front-runner in following Las Vegas's footsteps in the latter's evolution into a family entertainment center (prolonging the growth story).

Field Trip Series: Viva Vegas (Including Implications for Macau Gaming)

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index / Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Based on our research and checks, we estimate that the average daily revenue (ADR) in Macau gaming sector reached ~730 mn MOP during the period of Jul 1-20.  Furthermore, we estimate that VIP and mass segment grew ~43% and 10% MTD year-over-year, accelerating from 35% and 8% in Q2, respectively. According to Bloomberg on July 14, Macau’s largest junket, Sun City (~33% of VIP market by rolling volume), distributed a memo to its customers and staff saying that the Public Security Bureau recently…

Based on our research and checks, we estimate that the average daily revenue (ADR) in Macau gaming sector reached ~730 mn MOP during the period of Jul 1-20.  Furthermore, we estimate that VIP and mass segment grew ~43% and 10% MTD year-over-year, accelerating from 35% and 8% in Q2, respectively. According to Bloomberg on July 14, Macau’s largest junket, Sun City (~33% of VIP market by rolling volume), distributed a memo to its customers and staff saying that the Public Security Bureau recently…

Macau Jul Update: Daily GGR Rising 25+% YoY

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

The shambolic Republican healthcare reform effort is now dead – a vote to simply repeal Obamacare without any replacement looks unlikely as the focus turns to next year’s mid-term elections.A bipartisan effort to rein in healthcare costs (including medications) and hence surging insurance premiums is now feasible - the recent rally in US biotech would be cut short in that scenario.Although US data like retail sales remains soft, the removal of healthcare uncertainty should prove bullish over the…

The shambolic Republican healthcare reform effort is now dead – a vote to simply repeal Obamacare without any replacement looks unlikely as the focus turns to next year’s mid-term elections.A bipartisan effort to rein in healthcare costs (including medications) and hence surging insurance premiums is now feasible - the recent rally in US biotech would be cut short in that scenario.Although US data like retail sales remains soft, the removal of healthcare uncertainty should prove bullish over the…

Republican Healthcare Plan Implodes, as Quant Investing Boom Fails to Deliver...

Hong Kong

Galaxy Entertainment Group Limited, through its subsidiary, operates casino, hotel and other entertainment facilities in Macau. The company also manufactures sells and distributes construction materials.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Galaxy Entertainment Group (27 HK)

Galaxy's Mass Focus Worthy of Stronger Valuations Even if Macau Recovery Slows Against 2016 Comps

The company's performance clearly shows its mass segment focus is paying off. Underlevered is MICE target on its Phase 3 and 4 expansions will...

Howard J Klein

Field Trip Series: Viva Vegas (Including Implications for Macau Gaming)

Our field trip to Las Vegas suggests a vibrant, lively entertainment city. Downtown Las Vegas, not the Strip, is the key positive surprise in that...

Johannes Salim, CFA

Asia: Developing Leadership

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is...

Vermilion Research

Macau Jul Update: Daily GGR Rising 25+% YoY

Based on our research and checks, we estimate that the average daily revenue (ADR) in Macau gaming sector reached ~730 mn MOP during the period of...

JL Warren Capital

Republican Healthcare Plan Implodes, as Quant Investing Boom Fails to Deliver...

The shambolic Republican healthcare reform effort is now dead – a vote to simply repeal Obamacare without any replacement looks unlikely as the...

Sean Maher

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)