“The MMGI is derived from a multiple regression analysis based on three pillars: 1) China residential real estate investment growth, 2) China off balance-sheet financing growth and 3) China import value growth,” Macquarie analysts said. “The FY16E/17E GGR growth rates implied by MMGI are -10%/-9% YoY.”
The Macquarie analysis suggests that the severe downturn in Macau’s gaming industry may have finally bottomed out.
Macquarie also upgraded its price target on six Macau gaming operators. Sands China went to Outperform from Neutral and Melco Crown (NasdaqGS: MPEL) to Neutral. The analysts also believe Sands China and Galaxy Entertainment will benefit from project delays announced by Wynn Macau and MGM China.
BJK includes a 8.2% position in Sands China, 2.1% in Melco Crown Entertainment and 7.0% in Galaxy Entertainment.
Market Vectors Gaming ETF