Gold World Holdings, which had a premise, remained strong
Its share price hit a new high yesterday and reached a high of HK$14.34. It closed up 2.88% to HK$14.28. Currently, the company is actively expanding its gaming business in Southeast Asia and the Far East, plus projects in the next few years. In succession, the profit is expected to rise to the upper level, and the holders may wish to continue to hold.
GF Securities said that Golden Circle is Cambodia’s largest gaming operator, holding a casino license for the period from 70 to 2065, and enjoying exclusive rights within 200 kilometers of Phnom Penh before 2035. In addition, the bank believes that the company will benefit from the strict regulatory environment of the Macau gaming industry, and the local VIP business is facing overseas diversion pressure. The regulatory environment facing the gold sector is relatively loose, and there is no restriction on the commission ratio of Cambodia to the gold sector. The local is the Asian country that levies the least amount of tax on the gaming business, thus enabling the gold sector to provide higher gambling mediation. Commission rebates make their competition more advantageous.
The bank expects that the transfer of manufacturing to Southeast Asia will drive up the amount of foreign direct investment in the region
It is estimated that the gold sector will directly benefit from the rapid development of the local economy. In addition, Cambodia continues to expand and build new international airports to enhance passenger reception capacity. There are about 500 direct flights per week between Cambodia and China, and it will continue to increase. It is expected that Nagaworld visitors will benefit.
GF Securities to buy rating
In terms of earnings measurement, GF Securities estimates that the gaming revenue of the gold sector in the 2019-2021 year increased by 32.5%, 23.3%, 15.8% to 1.9 billion (US$. the same below), 2.343 billion yuan, 2.713 billion yuan, and EBITDA increased by 35.6%. 28.8%, 19.1% to 694 million yuan, 894 million yuan, 1.066 billion yuan, earnings per share of 13.1 cents, 17.5 cents, 21.3 cents, and a reasonable value of 14.7 Hong Kong dollars, the first “buy" rating.