Posted on April 16,$Macau Casino (BK1114.HK)$Continuing yesterday's decline. As of press release,$SANDS CHINA LTD (01928.HK)$decreased by 6.16% to HK$19.66;$SJM HOLDINGS (00880.HK)$decreased by 6.05% to HK$2.64;$MELCO INT'L DEV (00200.HK)$It fell 5.46% to HK$5.19.
According to reports, the Second Standing Committee of the Macao Legislative Council recently completed discussions and signed an opinion. The “Casino Lucky Gaming Credit Legal System” bill will be submitted to the General Assembly for detailed review and vote in the middle of this month. The latest text suggests that the new law will take effect in August this year. One of them is that only expo companies can borrow chips from guests. This means that the role and scope of operations of intermediaries is limited, leading to a reduction in the gaming intermediary business, which in turn affects the performance of gaming stocks related to the brokerage business.
According to a report published by Citigroup, Macau's gross gaming revenue increased 6% month-on-month. It is estimated that the industry's EBITDA increased by only 2% month-on-month, reflecting the negative impact of poor win rates on operating leverage. It is believed that the EBITDA growth performance of Aobo and MGM China was relatively good. Macquarie, on the other hand, said that it is expected that the profit of Macau gaming stocks in the first quarter will be affected by market share. It is estimated that the market share of MGM China, Wynn Macau and Macau Expo Holdings will increase month-on-month.