Marina Bay Sands 3rd Quarter with Slightly Improved Outlook

Posted: October 19, 2013 in Uncategorized


Media report extract

By:  Professional Ground panel

MBS Pushed Harder On VIP Gaming In its 3rd Qtr

Overall, Marina Bay Sands performed relatively stable in its 3rd quarter casino earning. Achieved slightly better Win % of 2.85% in VIP gaming.

Overall VIP turnover of non-negotiable chips amounts to S$13.8b which is considered OK. (But not fantastic).

3rd quarter Ebitda yoy rose by 43.3% to US$373m.

However, Las Vegas Sands Corp group performance improved by 45.5% yoy to USD12b in 3rd quarter. Profit rose by 31.7% to USD350m.

For Marina Bay Sands, we assess that this is the level it should be at, it is highly unlikely that Singapore’s gaming revenue and VIP Win % could raise any further.

Macau is totally in a different scenario. Sands China will continue to do very well going forward. Sky’s the limit. Sands China share price will likely to hit HK$65 to HK$70 by year-end.
China’s economic growth over the 3rd quarter has been strong. Such momentum will continue into 4th quarter. Year 2014 will be the consolidation of its renewed economic policies.

Genting Sentosa as we assess, there’s still no room for any significant improvement in its about to announce 3rd quarter results. There will be no surprise awaiting.


Share price of Sands China shot up to HK $60+ after our assessment released.
Based on the current trend, China economic growth seems to pick up momentum too soon after last year’s clamped down and credit crunch. It is very unlikely that the new premier of China would try any policy to slow down the economy train, in the following 6 months. Too many domestic political and market issues need to be revamped going forward and therefore a stable economic growth rate remains key factor.

Therefore, Macau has come to the new crossroad again, after mediocre growth the last two years. Sands China has mastered the act of generating good casino patrons since it’s inception in China’s SAR.
IT IS POSSIBLE that Sands China share target price may be adjusted even higher than HK $70 in the next two quarters.


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