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<Research>G Sachs Expects MO GGR to Gradually Recover in Coming Mths, Reiterates GALAXY ENT as Top Pick
Recommend 21 Positive 55 Negative 12 |
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Goldman Sachs noted in a report that Macau's June GGR was about MOP17.7 billion, only 74% of the pre-Covid level, compared to 79% in April and 78% in May, which is believed to be due to the impact of seasonal weakness and win-rate factors. GGR for 2Q ended June reached MOP56.4 billion, dropping 1.6% QoQ, which is still better than the historical seasonal impact of a 3-5% quarterly decline. After many months of strong performance, the report said there were signs that some Chinese visitors from wealthier regions (e.g. Beijing and Shanghai) were travelling to other destinations (e.g. Japan, South Korea and Thailand). Macau meanwhile received more visitors from other regions (e.g. Zhejiang and Guangdong). Goldman commented that investment sentiment on Macau casino stocks earlier in June was partly influenced by poorer GGR figures, and the positive revenue figures for June are expected to be welcomed by the market. The broker expected Macau's GGR to gradually recover over the next few months following the summer season and the relaxation of a number of policies. Goldman considered Macau gaming stocks still undervalued, and reiterated GALAXY ENT (00027.HK) as its top pick with a Buy rating, citing several initiatives (such as the expansion of its marketing team) and the organisation of some entertainment events, which are expected to help push its market share up to 20% or more. The broker also rated SANDS CHINA LTD (01928.HK), Melco Resorts & Entertainment (MLCO.US) and SJM HOLDINGS (00880.HK) Buy. AAStocks Financial News |
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