• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

As always, much is happening in Macau.  Here is some of the stuff we’ve been hearing lately:

 

Macau Market

  • May was the first HK$ billion slot month
  • Wynn, MGM, and SJM Cotai sites may get gazetted as soon as in the next 4-5 weeks 

MPEL

  • Neptune will be opening a new VIP room at City of Dreams in July/August – Neptune is one of the largest junkets in Macau so this could be significant for MPEL
  • City of Dreams may be looking into converting its Dragon Dome Theater into a giant VIP operation – may be talking to the Guandong VIP Group to run it.  We think Guandong currently has operations at Wynn and Starworld.
  • MPEL may get rid of its dual management structure and leave Ted Chan fully in charge
  • City of Dreams pumped in some extra junket liquidity ahead of the Galaxy Macau opening
  • We still think Studio City might be back on the agenda possibly with MPEL investing in addition to procuring a management contract

Galaxy

  • Galaxy Macau may be cannibalizing 30-35% of Starworld’s VIP volume
  • We’re hearing that Galaxy may have pumped as much as HK$1.6-2.0 billion in liquidity to its junkets through the opening of Galaxy Macau

 LVS/Sands China

  • Neptune and Sun City are finalizing deals with Venetian Macau to open up VIP rooms
  • Staffing has been a problem so the rooms may not open until July/August
  • LVS still struggling to grow its VIP share
  • We’re skeptical that FS apartments will get approved anytime in the foreseeable future - the public airing of dirty laundry in the Jacobs case isn’t helping their cause