Sands China dominates Macau

Due to its strong non-gaming business and its dominant position on Cotai, the company has benefited from the shift from the VIP market to the mass market.

Macau.-  Bernstein’s analysts says that Sands China has positioned itself as the leader of Macau’s gaming and non-gaming market, with more than 20 percent share of gross gaming revenue and around 50 percent of hotel room inventory amongst the six casino operators. Furthermore the company has strengthened retail and entertainment offerings, allowing it to have a differentiated marketing strategy to freely promote its non-gaming services in China, as gambling cannot be directly marketed in the Asian country.

“Sands’ market leading margins, strong Mass oriented product offering, a new key property set to open in late 2016 and focus on returning of capital to shareholders makes Sands an attractive buying opportunity,” reported Bernstein’s analysts. “The company’s commitment to dividends is unparalleled in the sector, with Sands currently having an 8.6 percent dividend yield, which we believe is safe due to its strong cash flow generation and ample liquidity. We reiterate an Outperform rating on Sands China with a 12-month TP of HK$33.00 (US$4.23.)”