Skip to main content

Market Overview

New Macau Policy Not Exactly What Market Expected

Share:

The new Macau policy over application of visas is "much milder than what the market is hoping for," according to a report from Deutsche Bank.

According to the report, Macau's Chief Executive said Tuesday that Macau is not requesting Beijing to expand the Individual Visit Scheme (IVS) as both governments understand that more visitors may hurt the livelihood of locals (e.g. traffic jams). Instead, China announced to improve the IVS visa application process.

Effective April 1, eligible individuals can now apply for IVS in the cities where they live or work, and they don't need to go back to their "registered home cities" for visa application, the report added.

"We think this new procedure will benefit the millions of migrant workers in the Guangdong province. However, as this easier procedure has already been applied in major cities such as Beijing, Shanghai Tianjin, Chongqing, Guangzhou and Shenzhen, we think the new procedure will only attract low-end, often non-gambling, leisure visitors," analyst Karen Tang wrote in a note to clients.

"We maintain our out-of consensus view where we forecast Macau GGR to fall 8% in 2016 (vs consensus -2%) and reiterate our view that Macau GGR will not recover until 2H2017 (consensus expects GGR to recover in 2H2016)," Tang added.

The analyst said as Macau stocks are trading at high-end of range at 15x 2016 EV/EBITDA, and sees most downside for Hold-rated stocks -- Galaxy, Sands and Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL). Tang prefers Hold-rated Wynn Macau Ltd. (OTC: WYNMY) for good first quarter ahead.

Latest Ratings for MPEL

DateFirmActionFromTo
Feb 2017Morgan StanleyUpgradesEqual-WeightOverweight
Jan 2017NomuraUpgradesReduceNeutral
Jan 2017Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for MPEL
View the Latest Analyst Ratings

 

Related Articles (MPEL)

View Comments and Join the Discussion!

Posted-In: Deutsche Bank MacauAnalyst Color News Global Analyst Ratings

Latest Ratings

StockFirmActionPT
GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com