Morning News &Views -Asia:A Summary of Select Global Markets Research

4Q16 EBITDA: 2% ahead of estimate. The Macau casinos generated property EBITDA of USD1.77bn in 4Q16,which was 2% ahead of our forecast, with the earnings disappointment from Sands more than offset by strongerthan-expected performance from Wynn and Galaxy (Fig. 4). Improving cashflows: USD2.1bn FCFE in 2016. Wehighlighted in our Anchor Report: Macau gaming - Lessons from Las Vegas (22 July 2016) that the sector is on trackto see strong cashflow improvement that will be key to underpin future share price performance. In our view themost important thing to take note of in the 2016 results is not the 2% EBITDA beat or 15% / 5% EBITDA growth in4Q16 / FY16. The key trend that investors should focus on is the improving cashflows with industry equity freecashflow (FCFE) improving from a net outflow of USD2.1bn in 2015 to a net inflow of USD2.1bn in 2016 (Fig. 5).