Century Casinos, which operates casinos mostly in Canada and the U.S., is likely to announce a project in Asia in coming months, according to Roth Capital.
The firm said in a note it bases its assumption on previous earnings calls and its “own checks.” The acquisition is likely to rely on China as a feeder market, Roth says.
“We believe any transaction will show well-below its own trading multiple and note that a solid Asia gaming opportunity should carry a higher multiple than domestic regional gaming,” the note says. “We do not expect any need for equity funding for the portfolio addition.”
Roth said recent share price declines at Century have left the company undervalued compared with its peers, despite meaningfully higher domestic growth rates and a “Q1 transformative property opening.”
The company has a presence in China through a casino on board the cruise ship Glory Sea, which caters to VIP players. The cruise ship is operated by Diamond Cruise International Co Ltd, a subsidiary of mainland Chinese travel company Suzhou Taihu International Travel Agency.
Century also recently acquired a property in Poland and last year teamed with the Hamilton Princess Hotel & Beach Club to apply for a license in Bermuda.
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