Avior Capital Markets - Sun International Ltd. (1034) ... SUI | Sun International |TSH | Tsogo Sun Holdings | SA Travel and Leisure: Casinos - Laying the odds for 2018

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Avior Capital Markets

SUI | Sun International |TSH | Tsogo Sun Holdings | SA Travel and Leisure: Casinos - Laying the odds for 2018

A positive change in South African consumer sentiment could spur above trend revenue recovery for discretionary-linked businesses such as casinos. In forming a view on the potential for investment performance upside, we also highlight some pertinent regulatory risks facing the gaming sector. We believe that increased taxation and a smoking ban pose the biggest threat to the industry. To quantify the negative impact that these risks could have on the two listed operators, Sun International (SUI) and Tsogo Sun (TSH), we stress test our models for a certain set of scenarios.

05/02/2018 22 EN

Underlyings

Sun International Ltd.

Sun International owns, develops, invests in and manages and operates casino, hotel and resort properties in South Africa, other African countries and Latin America. Co.'s South African properties comprised of GrandWest, Sun City, Sibaya, Carnival City, and Boardwalk. Co.'s Other African properties comprised of The Royal Livingstone and Federal Palace. Co.'s Latin America properties include Monticello.

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ZAE000097580 Johannesburg Stock Exchange South Africa

Tsogo Sun Gaming Limited

Tsogo Sun Holdings is a gaming and entertainment company. Through its subsidiaries, Co. is engaged in gaming and entertainment, investment holding, the management of casino interests and group training. Co.'s Operating segments include: Gold Reef City Casino; Gold Reef City Theme Park; Silverstar Casino; Golden Horse Casino; Mykonos Casino; Garden Route Casino; Goldfields Casino; Queens Casino; Gold Reef Management; and Gold Reef Resorts.

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ZAE000156238 South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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SUI | Sun International |TSH | Tsogo Sun Holdings | SA Travel and Leisure: Casinos - Laying the odds for 2018

Sun International Limited: 1 director bought

Tsogo Sun | Plan B

Sun International | Never waste a good crisis

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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