• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 12 July 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Analysts puzzled as combined market cap of Macau concessionaires falls back to 2022 COVID levels

Ben Blaschke by Ben Blaschke
Mon 13 Nov 2023 at 07:02
Analysts puzzled as combined market cap of Macau concessionaires falls back to 2022 COVID levels
36
SHARES
909
VIEWS
Print Friendly, PDF & Email

The combined market cap of Macau’s six concessionaires has fallen back to the same level it was a year ago – still only half of pre-COVID levels – leaving analysts baffled as to why another strong quarter of growth in Q3 has done little to drive stock prices north.

In a weekend note, JP Morgan’s DS Kim, Mufan Shi and Selina Li noted that Macau gaming stocks had fallen back to a combined market cap of just US$59 billion, less than half of 2019 levels and near identical to this time last year when Macau was still in the grip of the COVID-19 pandemic.

Despite ongoing concerns over macro-economic conditions in China – and noting that both Wynn Macau and Galaxy Entertainment Group had missed on 3Q23 EBITDA estimates – the analysts said they were “puzzled” as to why stock prices remained so stubborn given otherwise positive sentiment from the sector.

“As far as valuations go, many of these names are actually trading at historical trough multiples,” they wrote. “This, to us, is really compelling because: (1) gaming licenses have been fully renewed, which removed the biggest overhang for the sector in the past decade; (2) the business mix today is better than ever before, with ~90% of revenues coming from mass and non-gaming that are higher-margin, more stable and more predictable than VIP; and (3) we see limited downside risks to consensus, even under reasonably conservative macro scenarios.

“The combined market cap of the six operators is only US$59 billion, back to where it was a year ago, and this feels to us overly punitive.

“Last year was full of uncertainty and overhangs, because some market participants weren’t sure about license renewal, China’s reopening and even survivability of some operators. But now all those worries are completely in the rear-view mirror, and the pace/magnitude of recovery so far has been better than even the most bullish street expectations, by a wide margin.”

The analysts added that any impact from last week’s results announcements by Wynn and Galaxy seem overstated given that EBITDA misses were primarily luck driven, while commentary on Q4 earnings so far suggest growth is continuing. JP Morgan has, in response to this commentary, revised upwards in estimates for the December quarter to predict mass GGR growth of 12% quarter-on-quarter.

“This suggests the reopening recovery is still ongoing, which we think should cushion cyclical headwinds from China macro/consumption to some extent,” the analysts said.

“We understand valuations alone may not drive the stocks in this market, but we can’t help but think these stocks are oversold. At the current level of FCF yield … just the cash-flow paying down debt should generate ~15% annual returns on equity for names such as MGM, Wynn and Melco. We see great value in Macau names.”

RelatedPosts

Macau After Dark – MAD 30: Official Highlights Video

Macau After Dark – MAD 30: Official Highlights Video

Sat 12 Jul 2025 at 10:38
OPINION: Macau wants to recruit “foreign” customers? Great! Here are some ideas.

Air Macau suffers more losses, receives near US$300 million capital injection from shareholders

Sat 12 Jul 2025 at 10:36
Shareholder power play sees Tom Lau step down as director and Deputy Chairman of South Shore Holdings

MGTO says handover of THE 13 Hotel to new owner underway, renovation plans being reviewed

Sat 12 Jul 2025 at 10:15
Macau GGR hits new post-pandemic high of MOP$20.8 billion in October

Citi: Macau industry EBITDA likely to have grown by 3% in 2Q25

Thu 10 Jul 2025 at 05:46
Load More
Tags: concessionairesJP MorganMacaumarket capstock price
Share14Share3
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

Macau After Dark – MAD 30: Official Highlights Video

Macau After Dark – MAD 30: Official Highlights Video

by Newsdesk
Sat 12 Jul 2025 at 10:38

Leading gaming industry media brand Inside Asian Gaming held its latest edition of Macau After Dark, MAD 30, at Vasco – Bar & Lounge at Artyzen Grand Lapa Macau on Monday 7 July. The event saw leading representatives of the...

OPINION: Macau wants to recruit “foreign” customers? Great! Here are some ideas.

Air Macau suffers more losses, receives near US$300 million capital injection from shareholders

by Pierce Chan
Sat 12 Jul 2025 at 10:36

Air Macau, currently the only airline with an operating license in Macau, is facing continuing losses and recently announced that it has received a capital injection of approximately MOP$2.4 billion (US$297 million) from its shareholders. This is the second capital...

Shareholder power play sees Tom Lau step down as director and Deputy Chairman of South Shore Holdings

MGTO says handover of THE 13 Hotel to new owner underway, renovation plans being reviewed

by Pierce Chan
Sat 12 Jul 2025 at 10:15

The Macao Government Tourism Office is currently reviewing plans for a comprehensive makeover of THE 13 Hotel as the property’s new owner prepares to take control. As reported by IAG, THE 13 was sold last month to family members of...

Casino Filipino venues to receive first delivery of almost 2,000 new slot machines by mid-September

PAGCOR orders immediate remove of all billboards, other out-of-home advertising by online gaming operators

by Ben Blaschke
Fri 11 Jul 2025 at 11:18

Philippine gaming regulator PAGCOR has issued an order for online gaming operators to immediately remove out door billboards and other gambling-related out-of-home (OOH) advertisements. The order, issued on 7 July according to a PAGCOR announcement, covers “all licensees, suppliers and...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English