Suncity Group, a privately owned casino junket business, has seen its rolling chip volume "so far" recover to "about 20% of pre-COVID-19 levels in Macau," according to a note from Goldman Sachs (Asia) LLC on Monday.
The note, issued by Hong Kong-based analysts Simon Cheng, Alpha Wang and Carrie Zhang, was issued after the agency held "Game and Big Business Day" on Friday.
Referring to comments on Hong Kong-listed companies, or SunCity Group Holdings, related to the SunCity brand, the Goldman Sachs team said, "SunCity has commented that the pace of VIP recovery has so far fallen behind expectations. In response to soft market conditions, we have decided to close VIP rooms in Australia, [South] Korea, and selective VIP rooms in Macau, or Paris [Macao]. The latter property is operated by Sands China Ltd.
The agency suggested that the pace of Macau\'s GGR recovery "lagged" for the month, when VIP gross gaming revenue (GGR) across the Macau market recovered to around 20% of pre-COVID-19 levels in December, easing to less than 66% of the market\'s overall contracted year-on-year.
"VIP customers\' reservations for the Chinese New Year holiday are also relatively light," Goldman Sachs said of Suncity Brands.
"Overall, the group is of the view that the Asian VIP gaming market will take time and gradually recover," the analysts added.
Citing comments from SunCity, Goldman Sachs said SunCity Brands said it was "quite a nuisance" for go-rollers who played in the Macau market to return to Macau.
The agency cited issues such as the suspension of self-service kiosks in mainland China that could be used to apply for trips to Macau using mainland departure visas under individual visit plans for independent travellers.
Goldman Sachs also pointed to SunCity\'s mentioned consumer barriers to seek quarantine-free entry into Macau from the mainland, requiring it to be tested for COVID-19 and present a valid certificate. 토토사이트
Nevertheless, Suncity Brands said it "does not intend" to change its strategy of "going into international markets in the next two to three years, namely building integrated resorts across Asia except Macau."
The brand postponed the grand opening of Vietnamese casino Hoiana, a property where SunCity Listco is an investor, until the second half of 2021.
Last week, Suncity Brands said the second phase of work for Hoana will begin this year.
"We continue to operate Tigred Crystal in Vladivostok, Russia, and are pursuing the "construction work" of casino resort projects in Manila," Goldman Sachs added, as SunCity Group Holdings invested in Hong Kong-listed Summit Ascension Holdings.
"At Vladivostok, Suncity Brands planned to spend $200 million on Tigred Crystal\'s Phase 3 upgrade," Goldman Sachs noted.