Michael Ting

Equity Bottom-Up

<p>Our top pick within the Macau gaming space remains <a href="https://www.smartkarma.com/entities/sjm-holdings-ltd" target="_blank" data-smartkarma-citation="entities:805:1" rel="noopener">Sjm Holdings (880 HK)</a> due to the expected opening of Grand Lisboa Palace in either late FY20 or early FY21. Using <a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a> as an example whose share price outperformed the sector in FY19 by 19% due to GGR (gross gaming revenue) market share gains from the new Morpheus hotel, we believe SJM's share price in FY21 may also see sector outperformance due to the earnings benefits of new capacity.</p>

Our top pick within the Macau gaming space remains Sjm Holdings (880 HK) due to the expected opening of Grand Lisboa Palace in either late FY20 or early FY21. Using Melco Resorts &amp; Entertainment (MLCO US) as an example whose share price outperformed the sector in FY19 by 19% due to GGR (gross gaming revenue) market share gains from the new Morpheus hotel, we believe SJM's share price in FY21 may also see sector outperformance due to the earnings benefits of new capacity.

Macau Gaming Stocks: How to Position Over the Next 6-12 Months

SJM Holdings

Macau Gaming Stocks: How to Position Over the Next 6-12 Months