Junket operators in mixed week for casino stocks

    Published in: Latest IntelligenceIt was a week of mixed fortunes for Hong Kong-listed junket operators over the Chinese New Year, as weak Macau January gaming revenue, added to concern over China’s economy and sky-high valuations.However, analysts said overall junket stocks are holding up well, since they are now better capitalised and more fairly priced than the six main concessionaires.VIP traffic slowed slightly last week at smaller junkets, which is normal ahead of the Chinese New Year, while large junkets confirmed that there is no sign of balance sheet issues, analysts at Deutsche Bank said.“The junket industry is now much more well-capitalised, which means recent share price weakness more than priced in liquidity risks,” it said. Deutsche Bank estimates that the top 5 junkets in Macau now control 70% of the market.News Macau’s January gross gaming revenue expanded by only 7 percent, the lowest rate since Oct. 2012 and far...

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