In this briefing:
- CSE Global: Gaining Momentum
- Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet
- 2019 Asia Casino Forecast: Highlights by Country and Performance
1. CSE Global: Gaining Momentum
- Investors who have bought CSE Global on dips since my last note would have profited ~18%.
- The upbeat guidance by management and supply-demand environment should give some legs to the recent rebound.
- While risks of slower global growth may weigh on the stock, the stock is trading below its five-year average PE despite significantly improved cash flow from operations and a healthy order intake (three-year high).
2. Yincheng Intl (银城国际) IPO Quick Note: A Highly Levered Nanjing Developer Bet
Yincheng International, a China Yangtze delta focused property developer, is raising up to USD 110 million to list on the Hong Kong Stock Exchange. In this note, we will cover the following topics:
- The company’s property portfolio
- Financial performance that concerns us
- Shareholders and use of proceeds
- Our view on the deal
3. 2019 Asia Casino Forecast: Highlights by Country and Performance
- Headwinds linger, but are beginning to lose velocity as consumers defy macro fears.
- VIP slowdown should peak by Q3 and begin northward creep as bankrolls replenish.
- Valuations today do not yet fully reflect the beginnings of a sector recovery.
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