Asia gaming and consumer discretionary analyst

Michael Ting

Equity Bottom-Up

Our top pick within the Macau gaming space remains <a href="https://www.smartkarma.com/entities/sjm-holdings-ltd" target="_blank" data-smartkarma-citation="entities:805:1" rel="noopener">Sjm Holdings (880 HK)</a> due to the expected opening of Grand Lisboa Palace in either late FY20 or early FY21. Using <a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a> as an example whose share price outperformed the sector in FY19 by 19% due to GGR (gross gaming revenue) market share gains from the new Morpheus hotel, we believe SJM's share price in FY21 may also see sector outperformance due to the earnings benefits of new capacity.

Our top pick within the Macau gaming space remains Sjm Holdings (880 HK) due to the expected opening of Grand Lisboa Palace in either late FY20 or early FY21. Using Melco Resorts &amp; Entertainment (MLCO US) as an example whose share price outperformed the sector in FY19 by 19% due to GGR (gross gaming revenue) market share gains from the new Morpheus hotel, we believe SJM's share price in FY21 may also see sector outperformance due to the earnings benefits of new capacity.

Macau Gaming Stocks: How to Position Over the Next 6-12 Months

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Melco Resorts & Entertainment / Equity Bottom-Up

<ul>
<li>Slower revenue recovery in Macau thus far post IVS resumption spotlights value of Melco Resorts &amp; Entertainment Ltd. footprint in Manila.</li>
<li>Manila properties now permitted to open to 30% capacity which should begin to improve VIP arrivals going forward from Golden Week.</li>
<li>Melco shares have shown price resilience during pandemic headwinds that have, and continue to batter the sector.</li>
</ul>


Slower revenue recovery in Macau thus far post IVS resumption spotlights value of Melco Resorts &amp; Entertainment Ltd. footprint in Manila.
Manila properties now permitted to open to 30% capacity which should begin to improve VIP arrivals going forward from Golden Week.
Melco shares have shown price resilience during pandemic headwinds that have, and continue to batter the sector.


A Bull Case for Melco Amidst a Lingering Bear Outlook on Asia Gaming

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the impact of the ongoing COVID-19 crisis, regulatory and accounting developments, and the macro outlook. We also comment broadly on the H1/20 results of the Indonesian real estate players under our coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the impact of the ongoing COVID-19 crisis, regulatory and accounting developments, and the macro outlook. We also comment broadly on the H1/20 results of the Indonesian real estate players under our coverage.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.  

Asia HY Monthly - Indonesian Property Update (2020) - Lucror Analytics

Thematic (Sector/Industry)

Macau August GGR (gross gaming revenue) continued to be weak -94.5% yoy despite the resumption of visas from Zhuhai and the rest of Guangdong Province during the month. We expect September GGR to decline 94% yoy given lower seasonality. Our channel checks for October Golden Week hotel bookings indicate Macau travel demand could be weaker vs. previous Golden Week periods. Overall, we expect the recovery in Macau sector revenues to be a slow process. Top sector pick is <a href="https://www.smartkarma.com/entities/sjm-holdings-ltd" target="_blank" data-smartkarma-citation="entities:805:1" rel="noopener">Sjm Holdings (880 HK)</a> .

Macau August GGR (gross gaming revenue) continued to be weak -94.5% yoy despite the resumption of visas from Zhuhai and the rest of Guangdong Province during the month. We expect September GGR to decline 94% yoy given lower seasonality. Our channel checks for October Golden Week hotel bookings indicate Macau travel demand could be weaker vs. previous Golden Week periods. Overall, we expect the recovery in Macau sector revenues to be a slow process. Top sector pick is Sjm Holdings (880 HK) .

Macau August GGR: When Do the Punters Return?

The Asia HY Trade Recommendations report for the month of August includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Recommendations report for the month of August includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - August 2020 - Lucror Analytics

Hong Kong

Melco Resorts & Entertainment Limited develops, owns, and operates casinos. The Company offers casino gaming, restaurants, bars, and resorts facilities. Melco Resorts & Entertainment serves customers in Asia.

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Melco Resorts & Entertainment (MLCO US)

Macau Gaming Stocks: How to Position Over the Next 6-12 Months

Our top pick within that Macau gaming space remains Sjm Holdings (880 HK) due to the opening of Gr

Michael Ting

A Bull Case for Melco Amidst a Lingering Bear Outlook on Asia Gaming

Slo

Howard J Klein

Asia HY Monthly - Indonesian Property Update (2020) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the impact of the ongoing COVID-19...

Lucror Analytics

Macau August GGR: When Do the Punters Return?

Macau August GGR (gross gaming revenue) continued to be weak -95% yoy despite the resumption of visas from Zhuhai and the rest of Guangdong...

Michael Ting

Asia HY Trade Recommendations - August 2020 - Lucror Analytics

The Asia HY Trade Recommendations report for the month of August includes a summary of our recommendations, as well as our high-conviction ideas....

Lucror Analytics

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