Global Gaming Operators

Transcription

1 14 September 2015 Global Gaming Operators Industry Update Macau pipeline: Galaxy Macau Phase 2 and Broadway Macau opened on 27 May 2015 Macau Studio City will open on 27 October 2015 St. Regis Macao will open on 17 December 2015 Wynn Palace will open on 25 March 2016 Louis XIII will open in mid-2016 MGM Cotai will open in 4Q16 Parisian Macao will open in late 2016 City of Dreams 5th hotel tower will open in 1H17 Lisboa Palace will open in late 2017 Fisherman's Wharf will be home to two more hotels (Legend Palace in mid 2016 and Legendale in 4Q17) Macau pipeline in pictures September 2015 update Today we are publishing the latest version of our "Macau pipeline in pictures" report, which provides visual construction progress updates of all the major gaming projects currently underway. In Figure 1 in the PDF we present a matrix of the current Macau gaming development pipeline, which includes all of the large-scale IR projects from the Big Six concessionaires / subconcessionaires, as well as the expansions of the same operators, and the developments of two third party providers (aka service provider or satellite casinos). It also includes the opening dates for those projects with hard dates that have been already announced, as well as our estimated opening dates for the balance of the projects. The subsequent figures in the PDF contain photographic updates of construction progress for all of the projects listed in Figure 1 with the exception of Galaxy Phase 2 and Broadway Macau, which opened on 27 May. Analysts Grant Govertsen Tel: grant.govertsen@uniongaminggroup.com *Please see analyst certification and required disclosures starting on page 17 of this report Union Gaming Group. All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or by any information storage and retrieval system, without permission in writing from Union Gaming Group.

2 Macau pipeline in pictures Today we are publishing the latest version of our "Macau pipeline in pictures" report, which provides visual construction progress updates of all the major gaming projects currently underway. Figure 1: Macau supply pipeline summary In Figure 1 below we present a matrix of the current Macau gaming development pipeline, which includes all of the large-scale IR projects from the Big Six concessionaires / subconcessionaires, as well as the expansions of the same operators, and the developments of two third party providers (aka service provider or satellite casinos). It also includes the opening dates for those projects with hard dates that have been already announced, as well as our estimated opening dates for the balance of the projects. The subsequent figures contain photographic updates of construction progress for all of the projects listed in Figure 1 with the exception of Galaxy Phase 2 and Broadway Macau, which opened on 27 May. Allocated Designed Project Timing Operator Slots Tables Tables Rooms Galaxy Macau Phase 2 27 May 2015 Galaxy Entertainment 1, ,250 Broadway Macau * 27 May 2015 Galaxy Entertainment Macau Studio City 27 October 2015 Melco Crown 1, ,000 St. Regis Macao 17 December 2015 Sands China Wynn Palace 25 March 2016 Wynn Macau 1, ,500 Louis XIII Mid-2016 TBD MGM Cotai 4Q16 MGM China 2, ,600 Parisian Late-2016 Sands China 2, ,000 Fisherman's Wharf Mid-2016 to Late-2017 SJM Holdings na City of Dreams 5th tower 1H17 Melco Crown Lisboa Palace Late-2017 SJM Holdings 1, ,000 Total future supply 9, ,466 13,799 Supply as of 31 December ,018 5,711 27,904 Increase in supply from 31 December % 61% 49% Source: Union Gaming Securities Asia, company data 2

3 Figure 2: Melco Crown (MPEL) Macau Studio City (opening 27 October 2015) 3

4 Source: Union Gaming Securities Asia 4

5 Figure 3: Sands China (1928 HK) St. Regis at Sands Cotai Central (opening 17 December 2015) Source: Union Gaming Securities Asia 5

6 Figure 4: Wynn Macau (1128 HK) Wynn Palace (opening 25 March 2016) 6

7 Source: Union Gaming Securities Asia 7

8 Figure 5: MGM China (2282 HK) MGM Cotai (opening 4Q 2016) Source: Union Gaming Securities Asia 8

9 Figure 6: Sands China (1928 HK) Parisian (opening late 2016) 9

10 Source: Union Gaming Securities Asia 10

11 Figure 7: Melco Crown (MPEL) City of Dreams 5 th Tower (opening 1H17) 11

12 Source: Union Gaming Securities Asia 12

13 Figure 8: SJM Holdings (880 HK) Lisboa Palace (opening late 2017) 13

14 Source: Union Gaming Securities Asia 14

15 Figure 9: Louis XIII (577 HK) Louis XIII (opening mid 2016) Source: Union Gaming Securities Asia, company data 15

16 Figure 10: Macau Legend Development (1680 HK) Macau Fisherman's Wharf (Legend Palace Hotel 2016) Source: Union Gaming Securities Asia 16

17 Important Disclosure Analyst Certification The analyst, Grant Govertsen, primarily responsible for the preparation of this research report attests to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers; and (2) that no part of the research analyst s compensation was, is, or will be directly related to the specific recommendations or views in this research report. Company Specific Disclosures The following company is a client of Union Gaming and the firm has received or is entitled to receive compensation for investment banking services involving their securities within the last 12 months: 577-HKG Ratings Definitions Current Ratings Definition Union Gaming Research and Union Gaming Securities Asia Limited uses a traditional ratings construct (Buy, Hold, and Sell) that is underscored by percentage upside/downside from current trading levels along with dividend yields for total return. We exclude special dividends and contemplate regular dividends only in our total return forecasts. These are absolute ratings, not relative or forced ratings. We define a Buy rating as a company whose shares exhibit total return (appreciation and dividends) potential of at least 15% within the next 12 months, and conversely a Sell rating as a company whose shares exhibit downside potential of at least 15% within the next 12 months. A Hold rating is reserved for companies whose shares exhibit total return potential between those parameters. Buy the total forecasted return is expected to be greater than 15% within the next 12 months Hold the total forecasted return is expected to be greater than or equal to 0% and less than or equal to 15% Sell whose shares exhibit downside potential of at least 15% within the next 12 months Suspended the company rating, target price and earnings estimates have been temporarily suspended. Valuation and Risks Ratings Distribution (as of 09/14/2015) Coverage Universe Investment Banking Services / Past 12 Months Ratings Count Pct. Rating Count Pct. BUY 14 78% BUY 3 21% HOLD 4 22% HOLD 0 0% SELL 0 0% SELL 0 0% General Disclosures Additional information is available upon request. This report was prepared by Union Gaming Securities Asia Limited. Union Gaming Securities Asia Limited is a licensed corporation with the Securities and Futures Commission (SFC) in Hong Kong and wholly owned subsidiary of Union Gaming Group LLC. Union Gaming Group LLC also owns Union Gaming Advisors LLC, a FINRA member firm, Union Gaming Research LLC, a Nevada Registered Investment Adviser and Union Gaming Analytics LLC. Union Gaming Advisors LLC does not produce research reports.all questions or comments concerning this research report should be addressed to Union Gaming Securities Asia Limited at Union Gaming Advisors, LLC ("Advisors"), an affiliate of Union Gaming Securities Asia Limited, does not own any securities of any company analyzed in the research reports it distributes. Neither Union Gaming Advisors nor its affiliates or analysts serve as an officer, director or advisory board member of any Subject Company. Advisors, its affiliates, analysts and employees may have received investment banking, non-investment banking securities and non-securities service, related compensation from the subject company in the past 12 months. It further intends to seek compensation for investment banking, non-investment banking securities and non-securities service, related activities in the next three months. Accordingly, investors should be aware that the firm and its affiliates may have a conflict of interest that could affect the objectivity of the reports it distributes. Advisors is not now nor has ever been a market maker. All prices are those current at the end of the previous trading session unless otherwise indicated. Prices are sourced from local exchanges via Bloomberg and Factset. Data is sourced from Union Gaming Research, Union Gaming Securities Asia Limited, and subject companies. Union Gaming Research and Union Gaming Securities Asia Limited are not responsible for errors in prices provided by independent sources. Data, analyses, and reports necessarily contain time-sensitive information, and no subscriber or client should rely on dated reports or conclusions. Investor clients and financial advisers should consider any report from Union Gaming as only a single factor in making any investment decision. 17