Interview with Bloomberg Industry Research, Asia Pacific director Tim Craighead
Recently,Gaming Has become a hot topic in the capital market, the industry is also in 2013 won the good growth. However, this year will be built in Macau for the first time no new project since 2006 to attract tourists, a growth driver for the industry and therefore temporarily stalled, And that in turn affect the geometry of the capital markets? Recently, the "First Financial Daily" interview interview Bloomberg industry research, Asia Pacific director Tim Craighead, on the development of the Macau gaming industry this year to talk about his views.
Reporter: Macau and Las Vegas are gambling paradise, both what is the difference?
Tim Craighead: First of all, the denomination Macau gambling casinos are high you usually hard to find tables of HK $ 300 or less, in weekend nights, less than 500 Hong Kong dollars of desk sets are small, but in the US you can easily find. $ 2 or $ 10 a Black Jack table. In addition, Las Vegas is largely driven by a variety of performances, the year which show a variety of every day in Las Vegas performances, but only two shows in Macau. Macau business in general Casino The companies will be under pressure next year may slowdown, because before 2015, the industry will not increase the reception capacity of the new enterprise might focus instead on how to get visitors to stay longer on top, for example, shopping, dining and show respect, and will focus on what to consider strategies to help those operating conditions of the best facilities to achieve sustained growth.
Reporter: Macau gaming industry this year will face the challenges?
Tim Craighead: Expansion of Macau casinos will be suspended in 2014, which makes the industry will lose a key growth driver has been the gambling haven of Macau always present tight supply situation, the greater the more to build a new integrated gaming. Entertainment is always jammed, so where casinos operate all six companies have benefited. However, no new projects completed this year to help attract new tourists, which will be the first time since 2006, To this end casinos operators are maintaining growth rates will be challenged.
The first nine months of last year, the number of mainland Chinese tourists to Macao increased by 13%, mainly because of the new opening of direct high-speed rail so that the number of tourists from China's central and western provinces have increased. Now you only need five hours can be from Wuhan reach Zhuhai, which makes weekend trips becomes possible. In addition, after closing the port expansion also shorten the waiting time for entry of visitors. Mainland tourists accounted for 65% of all visitors to Macao, the mainland to increase the number of visitors to help promote Macau's gambling revenue in 2013 to achieve 17% growth in 2014, although the number is likely to Macao increased, but the growth rate over the same period of last year will face challenges.
Reporter: Macau business Casino How corporate earnings this year?
Tim Craighead: Melco Crown's City of Dreams, Sands Macao and the Venetian hotel in the Galaxy after the opening of new facilities to achieve a growth in the mass market, and despite having 6,000 rooms in the vicinity of the opening of Sands Cotai Central brings A new competition, but did not hinder the growth of these enterprises. This meant that, as tourists are attracted to the latest entertainment facilities, recreational facilities intense popular area to allow all businesses operating here in 2014 common benefit., casinos on the Cotai Strip is likely to remain the most attractive, because there had gathered a large number of key tourists.
SJM enterprises market valuations in 2013 increased by 40% to 75%, exceeding expectations. At present, it is expected enterprise value and EBITDA profit than the average of 17.6 times before, the highest since 2011 value valuation is so high at the same time, analysts of these companies in 2014 has shown a comprehensive opinion on its revenue and profit growth will slow.
Reporter: What do you think including gaming, including the entire entertainment industry momentum of development this year?
Tim Craighead: I think the entire entertainment industry, including the hotel industry and the gaming industry, which is the economic development and policy changes a very sensitive industry in 2012 when we are very worried about economic growth when SJM's situation is not good. and now valued by the Central Anti-Corruption will have an impact on the industry. With the steady growth of China's economy, the global economy is picking up, people will feel good to play. So from this aspect , the fundamentals in 2014 with respect to the numerous uncertainties in 2012 will be much better.
Reporter: As the Bloomberg Asia Pacific director of industry research, do you think this year's most noteworthy business have?
Tim Craighead: I think that based on the fundamentals of the industry's growth this year will be good, of course, there are some interesting future focus will continue to drive growth, such as health care, clean energy and technology In addition, we are also concerned about the specific policy Third Plenary. implementation of which will bring new investment opportunities, but also look forward to announce details of Shanghai FTA.
Reporter: Fed began to reduce the size of QE will have an impact on the financing environment for the financial industry how you look??
Tim Craighead: After QE reduced interest rate rise is already obvious to all, higher interest rates for borrowers, it will be very difficult for China, its soaring asset prices, if interest rates continue to rise, asset prices may fall, but if it is as the public expectations. and only a moderate increase in interest rates, then the profits for the banking and insurance sectors will have a positive impact on economic growth in general rise in interest rates is the risk lies, but there is still a positive effect.