Komo: Macau's fourth quarter gaming revenue may increase 15% to 16% year over year

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Macau's total gaming revenue for the first 21 days of December was 14.65 billion patacas (same below), or about 697 million yuan per day. Driven by normalization of win rates and luck factors, the average daily gaming revenue for the past week reached 700 million yuan, up from 650 million yuan the previous week. At a lower base, the average daily gaming revenue from December to now has increased by nearly 20% compared to the 587 million yuan in December last year. The bank believes that it originally predicted that total gaming revenue for December and the fourth quarter of this year would rise 15% and 13% year on year, respectively, and there is room for further improvement. Since current data shows that gaming revenue for the fourth quarter may increase 15% to 16% year over year, or 6% to 7% quarterly, it is also expected to support the market to continue to raise expectations.

The bank believes that the gaming sector is currently undervalued, and believes that with improved profit visibility and an increase in gamblers, the industry will have significant room for revaluation in the next few quarters. In terms of stocks, the bank is optimistic about Sands China (01928) in the short term, mainly because it is expected that the company will increase its dividends, and market share and profits will increase in the fourth quarter. In the long run (over 12 months), the bank chose Galaxy Entertainment (00027), believing that it has both steady value and long-term growth potential. On the other hand, the bank continues to recommend avoiding Melco International (00200) and Aobo Holdings (00880).