Damo: Macau's gambling revenue in October is expected to be roughly flat year over year, optimistic about Galaxy Entertainment (00027) and Wynn Macau (01128)

The Zhitong Finance App learned that Morgan Stanley released a research report saying that the Golden Week hotel survey in October this year showed that demand for hotels was roughly flat year over year. The occupancy rate was 6 percentage points lower than Golden Week in May and 4 percentage points lower than Golden Week in October last year, but the average room price was higher.

Damo pointed out that demand was weak during the October Golden Week, probably due to strong performance during the Mid-Autumn Festival, and the two seasons were close. The bank expects a high year-on-year increase in gambling revenue in September and roughly the same year-on-year in October.

The bank believes that after a year of continuous reduction in profit forecasts, the industry may be close to bottoming out, but the EBITDA forecast for the third quarter and this year is high. It is optimistic about Galaxy Entertainment (00027) and Wynn Macau (01128) because they have competitive market share, EBITDA higher than market expectations in the third quarter, and higher dividend yields.