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

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical, Nissan Motor, New World Development, Vedanta Resources</li>
<li>Treasury yields were stable, with front-end yields declining marginally amid risk aversion in the equities market. Yields on the 2Y and 10Y USTs fell 1 bp each to 3.56% and 4.23%, respectively. Tech stocks retreated yesterday. Microsoft Corp’s share price fell 10%, after the company reported slightly weaker Cloud growth, and amid concerns over its AI spending and concentration risk to OpenAI.</li>
<li>The S&amp;P 500 edged down 0.1% to 6,969, while the Nasdaq slumped 0.7% to 23,685.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical, Nissan Motor, New World Development, Vedanta Resources
Treasury yields were stable, with front-end yields declining marginally amid risk aversion in the equities market. Yields on the 2Y and 10Y USTs fell 1 bp each to 3.56% and 4.23%, respectively. Tech stocks retreated yesterday. Microsoft Corp’s share price fell 10%, after the company reported slightly weaker Cloud growth, and amid concerns over its AI spending and concentration risk to OpenAI.
The S&amp;P 500 edged down 0.1% to 6,969, while the Nasdaq slumped 0.7% to 23,685.


Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The Hong Kong market has seen a rebound in July, while North Asian markets declined sharply as the global AI/semiconductor sectors de-rated.</li>
<li>The financials sector has outperformed over the last 8 weeks, while the tech sector has shown increased strength and momentum.</li>
<li>
<a href="https://www.smartkarma.com/entities/mgm-china-holdings-limited" target="_blank" data-smartkarma-citation="entities:472:1" rel="noopener">MGM China (2282 HK)</a> share price rebounded over the last week before its August Q226 earnings announcement.  The company has increased its share of the mass-market gaming in Macau.
</li>
</ul>


The Hong Kong market has seen a rebound in July, while North Asian markets declined sharply as the global AI/semiconductor sectors de-rated.
The financials sector has outperformed over the last 8 weeks, while the tech sector has shown increased strength and momentum.

MGM China (2282 HK) share price rebounded over the last week before its August Q226 earnings announcement.  The company has increased its share of the mass-market gaming in Macau.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 2026)

Equity Long-Short

Mo Aziz

Thematic (Sector/Industry)

<ul>
<li>FY2025 GGR reached a record MOP247.4bn (+9.1% YoY), yet Macau casinos trade at just ~6.8x FY2027E EV/EBITDA, well below pre-COVID levels. The recovery is real; the re-rating has not happened.</li>
<li>The cheapest share price is not the cheapest company. SJM is the sector's most expensive stock at 9.1x FY2027E EV/EBITDA, while MGM is among the cheapest at 4.6x.</li>
<li>Bullish on MGM China (top pick), Melco, Sands China and Galaxy. Neutral on Wynn Macau and SJM, where balance-sheet constraints limit upside potential.</li>
</ul>


FY2025 GGR reached a record MOP247.4bn (+9.1% YoY), yet Macau casinos trade at just ~6.8x FY2027E EV/EBITDA, well below pre-COVID levels. The recovery is real; the re-rating has not happened.
The cheapest share price is not the cheapest company. SJM is the sector's most expensive stock at 9.1x FY2027E EV/EBITDA, while MGM is among the cheapest at 4.6x.
Bullish on MGM China (top pick), Melco, Sands China and Galaxy. Neutral on Wynn Macau and SJM, where balance-sheet constraints limit upside potential.


Macau Gaming Handbook 2026: One Market, Six Concessionaires, One Yardstick

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

Giant Network Group Co Ltd / Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.</li>
<li>We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 and $119-$121.</li>
<li>We remain overweight/continue to have a major focus on China (Shanghai Composite). It continues to offer the most attractive opportunities, with a significant number of today's recommendations coming from China.</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 and $119-$121.
We remain overweight/continue to have a major focus on China (Shanghai Composite). It continues to offer the most attractive opportunities, with a significant number of today's recommendations coming from China.


Sticking With China; Bullish Outlook Intact. Buys in Consumer Discretionary, Materials, and Tech

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Following a 20% rally in 1H25, the market has built in excessive optimism on the HSI. Historically, average returns for Jul-Oct are negative, suggesting caution is needed.</li>
<li>The top 10 best-performing constituents are sitting on 24x FY25F PER, much higher than 11x for the Index, implying that earnings excitement has been well factored in. </li>
<li>Among the worst-performing ones in 1H25, <a href="https://www.smartkarma.com/entities/byd-electronic-international-co-ltd" target="_blank" data-smartkarma-citation="entities:1927:1" rel="noopener">BYD Electronics (285 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>, and <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic Industries (669 HK)</a> look appealing in 2H25.</li>
</ul>


Following a 20% rally in 1H25, the market has built in excessive optimism on the HSI. Historically, average returns for Jul-Oct are negative, suggesting caution is needed.
The top 10 best-performing constituents are sitting on 24x FY25F PER, much higher than 11x for the Index, implying that earnings excitement has been well factored in. 
Among the worst-performing ones in 1H25, BYD Electronics (285 HK), Haier Smart Home (6690 HK), and Techtronic Industries (669 HK) look appealing in 2H25.


Hong Kong

Sands China develops, owns, and operates multi-use integrated resorts and casinos in Macao. The company's portfolio includes The Venetian Macao, The Londoner Macao, The Parisian Macao, The Plaza Macao, and Sands Macao, offering gaming, hotels, dining, retail, convention facilities, and entertainment. Sands China is headquartered in Macao and was founded in 2009.

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Sands China (1928 HK)

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical,...

Lucror Analytics

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 2026)

The Hong Kong market has seen a rebound in July, while North Asian markets declined sharply as the global AI/semiconductor sectors de-rated.

David Mudd

Macau Gaming Handbook 2026: One Market, Six Concessionaires, One Yardstick

The complete guide to Macau gaming — industry, regulation, Beijing risk and all six concessionaires ranked and valued on one yardstick. Read this...

Mo Aziz

Sticking With China; Bullish Outlook Intact. Buys in Consumer Discretionary, Materials, and Tech

Still Bullish. China (Shanghai Composite) has been a major focus ever since our July 3 Int'l Compass titled "China and Japan Breaking Out." It...

Vermilion Research

HK Strategy: Some Ideas for 2H25

Excessive optimism on HSI after a 20% rally YTD, caution needed for Jul-Oct as historically returns are negative. BYD Electronic, Haier Smart...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Sands China, First Pacific, Sunny Optical,...

Lucror Analytics

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (July 2026)

The Hong Kong market has seen a rebound in July, while North Asian markets declined sharply as the global AI/semiconductor sectors de-rated.

David Mudd

Macau Gaming Handbook 2026: One Market, Six Concessionaires, One Yardstick

The complete guide to Macau gaming — industry, regulation, Beijing risk and all six concessionaires ranked and valued on one yardstick. Read this...

Mo Aziz

Sticking With China; Bullish Outlook Intact. Buys in Consumer Discretionary, Materials, and Tech

Still Bullish. China (Shanghai Composite) has been a major focus ever since our July 3 Int'l Compass titled "China and Japan Breaking Out." It...

Vermilion Research

HK Strategy: Some Ideas for 2H25

​Excessive optimism on HSI after a 20% rally YTD, caution needed for Jul-Oct as historically returns are negative. BYD Electronic, Haier Smart...

Osbert Tang, CFA

Excessive optimism on HSI after a 20% rally YTD, caution needed for Jul-Oct as historically returns are negative. BYD Electronic, Haier Smart...