How we think differently. While market expectation is running low for the sector, we see light at the end of the tunnel and risk-reward becoming more favourable, thanks to: (1) lessthan- feared regulations—our extensive discussions with industry participants offer insights that the government’s proposed gaming law may be less stringent than expected; government is likely to publish feedback in mid-Dec; (2) expected HK quarantine-free border reopening with Macau to provide meaningful upside for current GGR than street’s forecast—pent-up demand from HK and travelling Chinese (it is easier for premium players  to apply for HK & Macau visa vs Macau only) is likely to generate 40-50% incremental  revenue for Macau’s current GGR; (3) a differentiated valuation approach—with limited  profitability visibility, we suggest replacement cost approach instead of EBITDA multiple.  Currently, stocks are trading at an average 40-50% discount to replacement value (casinos,  hotels & casino license), providing downside protection. Our IRR approach suggests an  attractive 33%/20% compound return by end 2023/24E, assuming stocks to return to the pre-COVID level.