SCHYY - Sands China: Deploying Capital Into The Expansion Of Premium Mass Offerings Makes The Stock Buy

Introduction

In this article, our first on Sands China (HK:1928) or (OTCPK:OTCPK:SCHYY), we will focus on Macao’s mass-market trends and the company's attempt to offset a decline in VIP market revenue by focusing on the premium mass-market segment. The company is currently up approximately 13.1% YTD and is trading at HK$37.10. In our view, the stock price currently seems slightly undervalued, given that it should outperform by the wider margin the entire HSI index YTD, which has been negatively impacted lately by the political crisis in Hong Kong. On the other hand, the