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 | 01928 | 01128 | 00880 | 02282 | 00200 | |
| Currency | HKD | USD | HKD | HKD | HKD | HKD |
| Total Assets | 91,806,250,000 | 10,415,000,000 | 44,914,018,000 | 49,583,900,000 | 28,831,431,000 | 95,769,612,000 |
| Total Debt | 21,880,496,000 | 8,853,000,000 | 52,011,267,000 | 13,959,900,000 | 25,550,426,000 | 68,633,994,000 |
| Total Debt to Total Assets Ratio | 23.83% | 85.0% | 115.80% | 28.15% | 88.62% | 71.67% |
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 |
| Revenue | 10,660,577,000 | 1,620,000,000 | 6,762,530,000 | 5,221,600,000 | 4,711,057,000 | 8,425,275,000 |
| 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 Margin | 9.01% | -23.52% | -31.89% | -28.69% | -36.79% | -44.57% |
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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