Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Suncity Group Holdings Limited
  6. News
  7. Summary
    1383   KYG8572D1135


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Macau Casino Stocks Extend Selloff as Junket Operator Suncity Shuts VIP Rooms

12/01/2021 | 02:09am EST

By Yi Wei Wong

Hong Kong-listed casino stocks slid further on Wednesday after major junket operator Suncity Group Holdings Ltd. shut VIP rooms across Macau, leading some analysts to cut revenue forecasts and longer-term outlook in the Asian gaming hub.

Wynn Macau Ltd. was 7.7% lower in afternoon trading, extending its decline this week to 19%. Galaxy Entertainment Group Ltd. was down 3.3%, Melco International Development Ltd. was off by 1.4%, SJM Holdings Ltd. was 3.8% lower and Sands China Ltd. had lost 3.9%.

The declines come as Suncity closed VIP rooms at several of its casinos in the city on Wednesday, people with knowledge of the matter told The Wall Street Journal.

Suncity sought a trading halt in the morning--its second of the week--saying it might make an announcement related to its VIP operations.

Wynn Macau could be the most affected by the tumult in the junket business, Morgan Stanley said in a note. The investment bank pointed out that Wynn has the biggest slice of the VIP market among its peers, with a roughly 21% share. That leaves its earnings--before interest, depreciation and amortization--most exposed to a downturn, Morgan Stanley says. Shares in the company, which is operated by international developer Wynn Resorts Ltd., have dropped more than 50% so far this year.

Wednesday's slides extend a broad selloff in casino shares this week after the arrest of the head of Suncity, Alvin Chau, rattled investors. Chinese authorities have alleged that Mr. Chau was involved in organizing cross-border gambling activities for Chinese customers. Gambling is permitted in Macau but illegal in mainland China. Mr. Chau and 10 others were detained for questioning by the Macau government over the weekend.

Suncity shares slumped 48% upon the resumption of trading Tuesday.

The arrest of Mr. Chau "should send a chill down the spine of any and all junkets," JP Morgan said in a research note. The investment bank expects VIP sector revenue to contract 30%-50% in the coming weeks, though the impact might not be too serious, given that VIP gambling has been on the decline and accounted for less than 40% of total gross gaming revenue in Macau in 2019. It has a neutral rating on the sector.

Ben Lee, founder of Macau-based gaming consultancy IGamiX, said the crackdown could also affect casino employees if workers come under scrutiny for promoting gambling in China.

"The casino's own marketing people could now potentially be caught in the same net as the junkets for inciting mainlanders to gamble," which could affect the premium mass segment if wealthy Chinese customers are deterred from traveling to Macau, he said.

"What used to be tolerated will no longer be," Mr. Lee added, saying that the scrutiny signals that casinos will increasingly have to look beyond China for clients. "The casino operators can no longer rely on China for gaming growth."

Write to Yi Wei Wong at yiwei.wong@wsj.com

(END) Dow Jones Newswires

12-01-21 0209ET

Stocks mentioned in the article
ChangeLast1st jan.
GALAXY ENTERTAINMENT GROUP LIMITED -0.33% 45.8 End-of-day quote.13.37%
MELCO INTERNATIONAL DEVELOPMENT LIMITED -4.22% 9.07 End-of-day quote.-4.63%
SANDS CHINA LTD. -3.03% 20.8 End-of-day quote.14.54%
SJM HOLDINGS LIMITED -3.75% 5.13 End-of-day quote.-2.29%
SUNCITY GROUP HOLDINGS LIMITED 0.93% 0.109 End-of-day quote.-13.49%
WYNN MACAU, LIMITED -2.05% 7.15 End-of-day quote.12.24%
2021Macau Casinos Should Bank on Mass-Market Gamers After Shutdown of VIP Rooms, Analysts S..
2021Macau's casinos pin hopes on everyday gamblers after junket shutdowns
2021Lenders to Enforce Securities Amid Suncity, Summit Controlling Shareholder's Failure to..
2021Suncity Group Unit to Sell Aircraft for $10 Million
2021Suncity, Summit Ascent Flag Potential Control Change as Lenders Eye former CEO Stake ov..
2021Shares of Macau gambling group Suncity set to fall 5.8%
2021Macau's Suncity confirms loan default by associate of controlling shareholder
2021SJM, Galaxy to Keep Junket-Run VIP Rooms Operational Despite Macau Crackdown
2021Wynn, Melco to Shutter Junket-Operated VIP Gambling Rooms in Macau amid Crackdown
2021Macau casinos to stop junkets at world's biggest gambling hub - Bernstein
More news
More recommendations
Sales 2020 -68,7 M -10,9 M -10,9 M
Net income 2020 786 M 124 M 124 M
Net Debt 2020 720 M 114 M 114 M
P/E ratio 2020 -6,44x
Yield 2020 -
Capitalization 727 M 93,4 M 115 M
EV / Sales 2019 21,9x
EV / Sales 2020 -66,8x
Nbr of Employees 1 166
Free-Float 25,0%
Duration : Period :
Suncity Group Holdings Limited Technical Analysis Chart | 1383 | KYG8572D1135 | MarketScreener
Technical analysis trends SUNCITY GROUP HOLDINGS LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Managers and Directors
King Yan Chiu Chief Financial Officer & Secretary
Kam Fun Wu Independent Non-Executive Director
Kin Chuen Tou Independent Non-Executive Director
Wai Tung Lo Independent Non-Executive Director
Kai Bong Lo Executive Director