Sands China and Galaxy Entertainment should be viewed as long-term investment opportunities once Macau visitor volumes return due to their high installed capacity and expansion plans, Bernstein Research said in a note.
It said MGM China and SJM Holdings are in a relatively weaker position, as MGM Cotai is facing increasing competition and SJM facing execution challenges in the ramp up of Grand Lisboa Palace. The firm was looking at a 2021/2022 time horizon.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.