Summit Ascent to reach GGR of $1.23bn by 2024
According to Bank of America/Merrill Lynch, the Suncity-owned operator will increase GGR through its casinos in Manila and Russia.
Asia.- Bank of America/Merrill Lynch has issued an optimistic report on the future of Summit Ascent in relation to its new Manila resort and the Tigre de Cristal property in Russia.
The investment firm gave Summit Ascent’s stock a “buy” rating and price target of HK$2 (US$0.25), which is about 135 per cent higher than current prices.
That’s due to a forecast increase in capacity in Manila and Russia, two casinos that could be a significant driver of growth.
The report also highlights Summit’s possibility to build its own VIP clientele through its main shareholder Suncity Group’s database. It said the operator would also benefit from China’s belt and road initiatives.
Bank of America/Merrill Lynch believes Summit Ascent’s gross gambling revenue (GGR) will reach HK$642m ($82.8m) in 2021, up 190 per cent since last year.
Another 190 per cent gain is expected the following year, taking GGR to HK$1.86bn (US$239m).
Once the second phase of the Tigre de Cristal casino opens in 2022 and the Manila project becomes operational in 2023, Bank of America predicts an estimated GGR of HK$9.6bn ($1.23bn) by 2024 and EBITDA of $1.9bn ($245m).
According to the latest filing from Suncity Group, the Manila casino will incorporate 400 hotel rooms, a casino with approximately 400 gaming tables and 1,200 slot machines for both mass and VIP markets. It will also include a parking facility with 960 spaces.
