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Which Macau Casino Stock Will Be The Winner For Guangdong-Macao Intensive Cooperation Zone Development?

Recently, Macau casino sector have been rebounded from its 52-week low as visitors are expected to increase in nearby future. Moreover, on September 5, 2021, China’s central government released the Master Plan of the Development of the Guangdong-Macao Intensive Cooperation Zone in Hengqin. This Plan will help to boost the economy of Greater Bay Area in long run. Macau Casino sector will also benefit from this positive economy growth. For investor who would like to capture this investment opportunity, which Macau Casino Stock will be the best choice?

Capital Structure

00027 0192801128008800228200200
CurrencyHKDUSD HKD HKD HKD HKD
Total Assets 91,806,250,00010,415,000,00044,914,018,00049,583,900,00028,831,431,00095,769,612,000
Total Debt 21,880,496,0008,853,000,00052,011,267,00013,959,900,00025,550,426,00068,633,994,000
Total Debt to Total Assets Ratio23.83%85.0%115.80%28.15%88.62%71.67%
Data Source: Interim Report 2021

For a company with lower debt level, it provides a better flexibility to raise fund for daily operation and future development. Base on the interim report of the company, 00027 GALAXY ENTERTAINMENT GROUP LTD. and 00880 SJM HOLDINGS LIMITED have the best capital structure among the competitors.

Profitability

00027 01928 01128 00880 02282 00200
Currency HKD USD HKD HKD HKD HKD
Revenue10,660,577,0001,620,000,0006,762,530,0005,221,600,0004,711,057,0008,425,275,000
Net Profit 960,234,000-381,000,000-2,156,817,000-1,498,100,000-1,733,311,000-3,754,765,000
Net Profit Margin9.01%-23.52%-31.89%-28.69%-36.79%-44.57%
Data Source: Interim Report 2021

Profit can use as internal funding for future development with zero cost. Under the critical business environment, 00027 GALAXY ENTERTAINMENT GROUP LTD. is the only company still making a profit.

Conclusion

Base on the assessment of capital structure and profitability, 00027 GALAXY ENTERTAINMENT GROUP LTD. seems to be the best investment for long term investor. The company has the best capital structure for future development which can capture the opportunity of the Guangdong-Macao Intensive Cooperation Zone.

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