It's time to buy shares of Macao gambling operators - JP Morgan

Macau’s gross revenues of slot machines (GGR) is likely to decline this year. However, representatives of the JP Morgan company in their review of the upcoming year at the world's largest casino market are advised to buy and hold shares of the largest operators of Macau.

On Sunday, January 13, the stock exchange issued a note saying that a cyclical slowdown in the economy of mainland of China would likely limit the income of Macau casinos this year. But the broker noted that this had already been taken into account by investors in terms of the price of shares of local operators.

“Most of the negative factors have already been taken into account and evaluated,” - wrote D. H. Kim and Shaun Chuang, analysts of a brokerage company from Hong Kong.

JP Morgan, as in the past forecast, is convinced that the annual GGR in Macau will shrink by 1% this year. Also, a brokerage company predicts that revenue in the VIP market will decline by 6%, while in the mass market it will increase by 3%.

JP Morgan believes that investors in Macau casino shares should not sell them. According to experts, the most promising are Sands China Ltd and Wynn Macau Ltd.

“The profitability trends of Macao operators were surprisingly stable, despite the very difficult macroeconomic background and the ever-growing concern about the recession,” - experts say.

Analysts have written that stocks are still tied to macro factors and overall market volatility, but the situation is already improving. In their opinion, patient investors will receive a decent reward. In particular, according to company representatives, Wynn Macau is very promising in this regard.