Andrew Stanley

Star Entertainment Group (ASX:SGR) was a strong contributor to the Ralton Australian Shares portfolio during the March quarter, adding value in a volatile market. Half-year profit results were solid on most metrics and importantly, the outlook continues to appear supportive. SGR will be a beneficiary of the ongoing influx of tourists from Asia, particularly China. Calendar year 2015 saw a material step up in terms of carriers, flights and passengers into Sydney airport from China, not just from Beijing and Shanghai, but also other major Chinese cities. The Sydney casino continues to gain market share domestically, which is expected to continue as SGR relaunches its loyalty program with the existing program already having good success. As details emerge about its funding structure for its new Brisbane facility, capital efficient construction of hotels and apartments in Sydney and on the Gold Coast, SGR should be able to comfortably meet its funding commitments in coming years from operating cash flow and its strong balance sheet. (VIEW LINK)


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