Halister News

(Bloomberg) -- Sands China Ltd.’s share price could be capped near term by potential loss of mass-market share and slower industry growth, Credit Suisse Group AG said as it cut the gaming company’s rating to neutral from outperform and lowered its PT to HK$40 from HK$43.50. 

• Co. is likely to underperform peers as market is currently more driven by high-end premium mass segment, and Sands China is more base mass-focused, analysts Kenneth Fong and Lok Kan Chan write in Oct. 11 note
• They still like Sands China longer term for its good earnings quality, with completion of the Hong Kong-Zhuhai- Macau bridge opening up more opportunities for convention business and mass traffic
• Galaxy Entertainment Group Ltd. to outperform as should have gained share in VIP and mass segment; strong relationship with junkets, opening of new junkets and new smoking premium mass tables have led to better performance
• Galaxy is Credit Suisse’s only outperformer in the sector; Sands China, MGM China Holdings Ltd., Wynn Macau Ltd. and SJM Holdings Ltd. all rated neutral
  • “While we remain constructive on the sector in the longer term, we suggest that investors wait for better entry opportunities”

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies