Strong VIP while mass negatively impacted by typhoons    Aug GGR beat the recent market expectation of 18.5% YoY growth. Weestimate Aug GGR in VIP segment to have grown 33% YoY, and massGGR to record slower growth of 6% YoY on reduced visitor arrivals due totyphoons. Two typhoons have hit Macau in late Aug and the MacaoGovernment Tourism Office has suspended package tours to the city sinceAug 25in order to free up resources to help the city recover. Therefore, webelieve mass market has taken a blow.    Full year GGR to grow 17-19% YoY    We expect Sep GGR to record slower YoY growth of 18% YoY, given 1)higher base in Sep 2016which recorded 7.4% YoY growth in GGR, and 2)impact from suspension of package tours to Macau (to be resumed on Sep2nd). Factoring in the impact from two typhoons, we think GGR growth forFY17E should range 17-19% YoY.    Buy Galaxy and Sands China    The sector is currently trading at 21x FY18E P/E and 13x EV/EBITDA, inlinewith their respective 5-year averages. The sector has underperformedHSI in Aug given the market concerns on typhoon’s impact. With the upbeatGGR in Aug, we believe that the market will regain confidence on thesector. Currently we suggest investors to accumulate Galaxy and SandsChina. We like Galaxy for its continuing strong performance, undemandingvaluation and potential in margin expansion. We also like Sands China forits laggard position and high dividend yield in the sector.

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