Saturday, May 18, 2013

CASINO MACAU SJM : First Quarter Results 2013 -> Moderate Growth




Background
SJM Holdings Limited is the holding company of Sociedade de Jogos de Macau S.A. ("SJM"), one of the six companies authorised to operate casino games of fortune and other games of chance in casinos, under the terms of a concession granted by the government of the Macau Special Administrative Region in March 2002. SJM is the only casino gaming concessionaire with its roots in Macau, and is the largest in terms of gaming revenue and number of casinos.
SJM's casinos are located in prime locations on the Macau Peninsula and Taipa Island and convenient to principal entry points. Gaming operations are comprised of VIP table gaming, Mass Market table gaming and slot machines.

Overview
  • In 1Q13, SJM recorded gaming revenue of HK$21,734M, up 10.4% YOY. Adjusted EBITDA grew 11.2% YOY to HK$2,129M. Profit attributable to owners grew 11.8% to HK$1,915M. 
  • The gaming revenue accounted for 26.2% of Macau’s casino gaming market in 1Q13, down from 26.7% at the end of 2012.
  • In 1Q13, VIP gaming revenue increased 13.4% YOY to HK$15,137M. Revenue from mass market gaming business was up 4.7% YOY to HK$6,220M and the slot machine revenue declined 4.2% YOY to HK$377M in 1Q13.
  • The gaming revenue from Casino Grand Lisboa amounted to HK$8,327M, up 24.0% YOY and accounted for 38.3% of the total.
Suggestion
  • P/E ratio is 17.6x and P/B is 6.28x.
  • 2012 ROE: 36.4%
  • Currently valuation is moderate. 
  • We maintain BUY and HOLD rating on this counter.




Development of Cotai land
In 2012, SJM obtained the right to lease the land parcel with the area of 70,468 square meters in Cotai with an initial term of 25 years. SJM intends to build a casino gaming resort on theCotai Land. The resort may add another 700 gaming tables and 1,000 slot machines as well as 2,000 hotel rooms to SJM, which is subject to the approval of the authorities.




Income Statement


Friday, May 17, 2013

2013 : Good Opportunity in China Stock Market

Special Situation portfolio, continue to accumulate more shares in China/Hong Kong Stock market because the market valuation is among the lowest in Asia.

Consumer in China - Very important for you to success in marketing good money.


Latest News : Citigroup

Citigroup (C +2.5% to $51.34): Citi Brazil announced the definitive agreement with Banco Ita├║ Unibanco to sell Credicard, its non-banking credit card and consumer finance business, subject to approval by Brazilian regulatory authorities. The deal is expected to generate a gain on the sale of appx $300M after-tax.

Insider Filing : AIG - Top Buy for Value Stock in NYSE

Special Situation Portfolio:
AIG - Added Position by 100%.


This is a smart trading, which target price at USD50.00.

Thesis:
Current AIG is trading at Price/Book Value : 0.70. We expected the hedge fund manager will keep promote this counter, and we should invest more into AIG when the AIG price is trying to catch up to its book value.

Seth Klarman, hedge fund manager, already bought the AIG with 8% to his portfolio.


Ken Heebner is another top growth hedge fund manager, who bought AIG since Dec 2012.


With this solid data, i expect the global economy is in transition from bear market to bull market. This is the start of bull market.





Thursday, May 16, 2013

Agilent : Stock Repurchase & Cut 450 jobs

Agilent Technologies (A +3.89% to $45.68) posted a 2Q adj EPS of $0.77 vs $0.78 a year ago ($0.67 expected) on revenue of $1.73B, flat YoY. The Co expects 3Q EPS to be in a range of $0.60 to $0.64 and revenue to be $1.63B to $1.66B. The Co will increase its stock repurchase program by $500M to $1B and cut about 450 jobs this year.

Galaxy Entertainment (0027)

Macau casino operator Galaxy Entertainment Group said its first-quarter adjusted earnings rose, fueled by record wins from mass-market gamblers in the world's largest gambling market.

Wednesday, May 15, 2013

AIG : Upgraded to Overweight

AIG (AIG +1.04% to $44.64) was upgraded to "overweight" from "equalweight" at Barclays.

Galaxy Entertainment Group (0027) - Hang Seng Index

Galaxy Entertainment Group (27) will replace Esprit Holdings (330) in Hong Kong's benchmark Hang Seng Index, effective June 17, announced Hang Seng Indexes Co Ltd.

Monday, May 13, 2013

#1 Good Quote

“If you work hard on your job you can make a living. If you work hard on yourself you can make a fortune.” – Jim Rohn

Sunday, May 12, 2013

Stadium Batu Kawan : Answar - PKR Leader

Approximately 120,000 people attend blackout event in Stadium Batu Kawan, Pulau Pinang.