Deutsche Bank said it met up with a couple of junket agents, premium mass marketing hosts and casino operators in Macau last week. These conversations affirmed DB's view that the upcoming 2Q low season won't be that slow this year.
In particular, junket agents have noted recently that: (1) their largest VIPs, often in the commodity and property trades, have started to come back this year; (2) VIPs now prefer to keep their winnings in their junket accounts, instead of transferring the money to their bank accounts in HK, usually a sign that they plan to return to Macau soon. (3) Suncity, Macau's largest junket operator, is extending longer credit terms to its junket agents, from 14 days to 21 days.
DB thus reiterated its above-consensus forecast that GGR will accelerate from 10% yoy in January-February to mid-teens in March and to high-teens in 2Q. With GGR growth accelerating, the research house expects the Street could soon lift 2017 GGR forecast from the current 10% towards DB's forecast level of 15%.