Macquarie: Macau's gaming revenue is expected to increase by up to 22% year on year in December, the target price for Preferred Galaxy Entertainment (00027) is HK$57.5

The Zhitong Finance App learned that Macquarie released a research report saying that the data showed that Macau's average daily gaming revenue last week was 700 million patacas (same below), up 8% from week to week, and the VIP room win rate has returned to normal levels. Compared with November, the average daily revenue of midfielders increased by 3% to 5%, while the average daily revenue of lounges increased by 2% to 5%, and the VIP club win rate reached 2.7% to 2.9% (over 3% compared to November). Assuming that the average daily gaming revenue remains between 660 million and 750 million yuan for the rest of the month, total gaming revenue in December will reach 21.3 billion to 22.2 billion yuan, an increase of 17% to 22% over the previous year.

The bank's preferred stock in the gaming industry is Galaxy Entertainment (00027), with a target price of HK$57.5. The rating is “outperforming the market”, mainly due to its strong property project reserves and sufficient hotel room supply; Capella Hotel, which is expected to be fully put into operation by the end of this year, is expected to increase the company's market share in the high-end midmarket.

In addition, the bank also recommended that investors re-examine Sands China (01928) and MGM China (02282). Considering their increased market share and attractive valuation levels, the target prices were HK$25.2 and HK$22.6, respectively, and both received a “outperforming market” rating.