[ET Net News Agency, 17 April 2018] CICC Research initiated coverage on Melco
International Development (00200) with a "buy" rating and a target price of HK$35.1.
It believes Melco, trading at an NAV discount of 34%, represents the cheapest exposure
to Macau's growth profile as a proxy of Melco Resorts & Entertainment.
CICC expects the Macau gaming sector to outperform on sustained mass-segment momentum
and macroeconomic strength. It also expects the sector's GGR and EBITDA to increase at
2017-19 CAGRs of 12% and 18%, respectively.
CICC believes new management at CoD will reverse Melco Resorts' mass-segment market
share losses. It expects Melco Group to post EPS of HK$0.80 for 2018 and HK$0.98 for 2019,
a 79% CAGR. (KL)