Macau Gaming: High Certainty in an Uncertain Environment

One and only world-class gambling destination in Asia

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.