Analysts said that six existing casino operators in Macau have agreed to the terms of the period of ten years, which may boost the income in the next few years and increase the stock valuation.Earlier anti -epidemic restrictions have caused the valuation of these casino operators.
The Wall Street Journal reported that operators including Sands China, MGM China and Wynn Macau signed a renewal agreement last weekend.Singapore dollars), mainly used for non -gaming services, now Macau hopes to reduce dependence on the gaming industry and achieve diversification.
The above news was released after closing last Friday (December 16). On Monday (19th), the response of relevant stocks to this news fell sharply.MGM China fell 13%, Wynn Macau fell 8.9%, and Melco international development fell 10%.
However, some analysts still have a positive attitude towards the terms of renewal.
Goldman Sachs analyst stated in a report that the six operators promised to invest 30%of the income from the income from the interest and tax folding stalls before the outbreak of the epidemic.
They believe that these investment is controllable and provided funds from the cash flow of existing business, although their loans have risen in the past two to three years.
Although the licenses of the six Macau casinos have been renewed, they are widely expected, but officially decided to eliminate the concerns of one of the casinos that may be licensed by Genting Malaysia.Genting Malaysia unexpectedly became the seventh bidder.
The above contract is expected to take effect on January 1, 2023.
According to reports, Morgan Chase Asia Gaming Research Director DS Kim watched the Bullies of Macau.He said that the price -earnings ratio of this stock based on 2024 interest, taxes, depreciation, and amortization was 11 times that it was still relieved.
Kim mentioned in a report that in other words, in terms of profit expectations and valuations, there is still a good room for rising, so the stock price is the same.
He also believes that the proposed investment of these companies in the next ten years may be returned and helps Macau's casino operators get non -gaming revenue.
Citi analyst George Choi and Ryan Cheung predict that if these casinos can stay in various resorts in Macau through non -gaming products, operators may get reasonable returns.
But Citiban said that before making a major financial decision, casino operators must notify the Chief Executive of Macau He Yicheng. Compared with the past, this new rule may affect the dividend ability of some companies.
Danien's two analysts said that Macau gaming stocks were not a high -yield section from the beginning, so this new regulation may not have a significant impact on investors' interests.
