MSC - Macau rebound seen as unlikely until hurdles removed - Roth Capital
Roth Capital Markets warns on the Macau sector after the Macau Government Tourism Office reported visitations were down 86.2% for the first four days of the Golden Week period (October 1-4).Golden Week is being closely watched for some signs of improvement after seven months of dismal gross gaming revenue in Macau. Analyst David Bain says gross gaming revenue marks could go lower again as the recovery timeline appears to be pushed off. "Mass visitation dearth (particularly relative to rebounding domestic China travel) is largely due to manual visa application requirement and strict COVID testing requirements. Our sources cite the market as unlikely to rebound to any significant level until both hurdles are revised."Bain says the firm continues to be cautious on the mass market sentiment, as well as under the hood VIP issues, including liquidity, player base recovery visibility, HK dollar chip buying/redemption disruption and potentially new China Government scrutiny/messaging.
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Macau rebound seen as unlikely until hurdles removed - Roth Capital