Macquarie: Macau's gaming revenue is expected to maintain a steady trend in December, and I am optimistic about Galaxy Entertainment (00027)

The Zhitong Finance App learned that Macquarie released a research report saying that it is optimistic about Galaxy Entertainment (00027) because the company has strong property project reserves and sufficient hotel room supply, and the Galaxy Capella Macau, which is expected to be fully operational by the end of this year, is also expected to increase its share in the high-end midmarket market. The bank also advised investors to re-examine Sands China (01928) and MGM China (02282), believing that both companies have market share growth advantages and attractive valuation levels.

According to third-party data, Macau's gaming revenue increased 32% year over year in the past week, and performance improved month-on-month in the first week of this month, indicating that some major players may have re-participated in gaming activities after the National Games. Compared with November, the average daily gaming revenue of midfielders increased by 5% to 8%, while the average daily gaming revenue of lounges increased by 6% to 8%, and the lounge win rate was 2.9% to 3.2%, compared to November. The bank expects that gaming revenue in December will maintain the trend of the previous month, recording a double-digit year-on-year increase.

The bank said that in November, Wynn Macau (01128) and Aobo Holdings (00880) are expected to gain the most market share, reaching 1.5 and 1 percentage point respectively, while Sands China and MGM China each increase 0.5 percentage points. The bank pointed out that Sands China's market share rebounded steadily over the past few months and climbed to a 13-month high in November, reaching 24.5%.