Daily Reflection on China

Daily Reflection on China

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Daily Reflection on China
Daily Reflection on China
Macau Gaming: High Certainty in an Uncertain Environment
Stock Market

Macau Gaming: High Certainty in an Uncertain Environment

One and only world-class gambling destination in Asia

Qi Wang CFA's avatar
Qi Wang CFA
Aug 28, 2023
∙ Paid
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Daily Reflection on China
Daily Reflection on China
Macau Gaming: High Certainty in an Uncertain Environment
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Best way to understand everything I say here is to visit Macau and see it yourself, if you can. It’s a nice little distraction if you happen to be in Hong Kong for anything.

For investors, Macau gaming is a rare sector in China that offers relatively high certainty, in a largely uncertain environment.


As promised, we dig deeper into the Macau gaming (gambling) story today. Macau (Macao) is a former Portuguese colony in Southern China, now a special administrative region (SAR) of China like Hong Kong.

Investment Thesis

We like the Macau casino stocks for four reasons:

  • Scarcity value

  • High earnings visibility

  • Margin expansion

  • Improving cash flow and balance sheet

We normally don’t allow more than three points in an investment thesis, because we’d like to only focus on the salient issues. This is a special case.

Macau gaming is also at the core of our Hong Kong Reopening Index. Click below to learn more.

Stock Market

Hong Kong Reopening Select Index +5.4% in July, down 2.6% MTD in August

Qi Wang CFA
·
August 13, 2023
Hong Kong Reopening Select Index +5.4% in July, down 2.6% MTD in August

Please note: any index mentioned here is for information and illustrative purposes only. An index itself does not constitute any actual fund, portfolio, trading strategy or financial product. It is not possible to invest directly in an index. We make no recommendation or offer to buy/sell any securities, portfolios of securities, investment schemes or trading strategies here. Past performance does not guarantee future results.

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