Affected by the epidemic, the income regressed and the betting volume recovered satisfactorily. Gold World Holdings' total gaming revenue from January to September was $609 million, a decline of 52.6 per cent from last year's 1.287 billion. Of this total, total revenue in the third quarter was 237 million US dollars, down 41.3 percent from 396 million last year. The amount of VIP transcoding / hall betting / slot machine bets in the third quarter was US $62.3 / 270 million respectively, a decrease of 42%, 42%, 36% and 62%, respectively, compared with the first half of the year. During the period from August 1 to September 30 after the restart, the betting amount of VIP / lobby / slot machine has returned to 71%, 93% and 100% of the casinos before the closure of the casino affected by the epidemic in the first quarter of this year, and the recovery of the mass market gambling business is satisfactory.
Non-gambling operations are being restarted. During the 25th anniversary celebration, the company launched a reward program to exchange certain chips for accommodation and catering. At present, 70% of the restaurants in Jinjie Entertainment City have resumed business, and the hotel room occupancy rate is about 30%. It is expected that there is still much room for improvement in the overall reception capacity of non-gambling business.
Major shareholders began a new round of holdings. After increasing his holdings in the first quarter of this year, Mr. Zeng Liqiang, a major shareholder and CEO of the company, began to increase his holdings in the company from September 11 to a total of 14.08 million shares, equivalent to about HK $134 million, reflecting the confidence of major shareholders in the future operation of Golden World Holdings.
Plenty of cash and low financial risk. As of September 30, the company had $478 million in cash and deposits, and on July 7 this year successfully issued a $350 million preferred note with an interest rate of 7.95%, enough to repay the most recent $300m debt due in 2021. Based on the company's financial strength, the interest rate on preferred notes issued by the company is also falling steadily.
Investment suggestion: we adjust the model according to the company's revenue recovery, and predict that the company's income from 2020 to 2022 will be 9.6 shock 1.55 billion US dollars respectively, with a year-on-year change of-45.5%, 61.7% and 21.0%. Based on the relative size of gold in the Hong Kong stock gaming sector and the market environment in Cambodia, EBITDA valued the target EV/EBITDA at 12 times the target price of HK $11.4, maintaining a "buy" rating based on the relative size of gold in the Hong Kong stock gaming sector and the market environment in Cambodia.
Risk tips: the impact of the global epidemic on the tourism and gambling industry, the increased risk of competition among large casinos in Southeast Asia, the risk of postponement of the third phase of the gold project, and the risk that the time and income of the Russian project are not up to expectations.