Core Viewpoint - Morgan Stanley's report indicates that Macau's gaming revenue for the first 26 days of October reached 20.4 billion MOP, with an average daily revenue of 785 million MOP, reflecting pent-up demand during the Golden Week due to previous disruptions from a typhoon and the Mid-Autumn Festival [1] Group 1: Industry Insights - The report suggests a significant upward trend in gaming revenue, with total revenue for October potentially reaching 23 billion MOP, marking a 71-month high [1] - Starting from December, due to a low base, the firm anticipates double-digit growth in gaming revenue, maintaining low double-digit increases into the first quarter of next year [1] Group 2: Company Ratings - The company is optimistic about Wynn Macau (01128), assigning an "Overweight" rating, expecting its Q3 performance to exceed expectations [1] - For the medium term, Galaxy Entertainment (00027) is also viewed positively, receiving an "Overweight" rating [1] - The company holds a negative outlook on SJM Holdings (00880) and Melco International (00200), assigning "Neutral" and "Underweight" ratings respectively, citing high valuations relative to fundamentals and limited shareholder returns over the next 12 months [1]

Core Viewpoint - Morgan Stanley reports that Macau's gaming revenue for the first 26 days of October reached 20.4 billion MOP, indicating a potential upward trend in gaming revenue due to pent-up demand from the Golden Week holiday [1] Industry Summary - The average daily gaming revenue for October is 785 million MOP, with last week's revenue accelerating to 793 million MOP, reflecting increased activity post-typhoon and mid-autumn festival [1] - The total gaming revenue for October could reach 23 billion MOP, potentially marking a 71-month high [1] - Starting from December, a low base is expected to drive double-digit growth in gaming revenue, continuing into the first quarter of next year with low double-digit increases [1] Company Summary - Wynn Macau (01128) is viewed positively in the short term, with an "Overweight" rating and expectations for third-quarter performance to exceed forecasts [1] - Galaxy Entertainment (00027) is also favored in the medium term, receiving an "Overweight" rating [1] - The outlook for SJM Holdings (00880) and Melco International (00200) is less favorable, with "Neutral" and "Underweight" ratings respectively, as their valuations are considered high relative to fundamentals, and shareholder returns over the next 12 months are expected to be limited [1]

Core Viewpoint - Morgan Stanley's research report indicates a significant potential upward trend in Macau's gaming revenue, with October's total revenue possibly reaching 23 billion MOP, marking a 71-month high [1] Group 1: Gaming Revenue Insights - As of October 26, Macau's gaming revenue reached 20.4 billion MOP, with an average daily revenue of 785 million MOP, showing an acceleration to 793 million MOP in the previous week [1] - The report suggests that the increased revenue may reflect pent-up demand during the Golden Week, as many players shortened their trips due to the typhoon and Mid-Autumn Festival [1] - Morgan Stanley forecasts that starting from December, gaming revenue is expected to record double-digit growth, maintaining low double-digit increases in the first quarter of next year [1] Group 2: Company Ratings - Morgan Stanley has a positive short-term outlook on Wynn Macau, assigning an "Overweight" rating, anticipating that its third-quarter performance may exceed expectations [1] - The firm also maintains an "Overweight" rating on Galaxy Entertainment, indicating a favorable mid-term outlook [1] - Conversely, Morgan Stanley is less optimistic about SJM Holdings and Melco International, assigning "Neutral" and "Underweight" ratings respectively, citing their valuations as high relative to fundamentals and limited shareholder returns over the next 12 months [1]

Group 1 - The core viewpoint of the article highlights the continued rebound of Hong Kong gaming stocks, with significant gains observed in companies such as Sands China and Galaxy Entertainment [1] - The Macao Gaming Inspection and Coordination Bureau reported that the lucky gaming revenue for Q3 this year reached 62.57 billion Macao Patacas, marking a 12.53% increase compared to 55.602 billion Patacas in the same period last year, and a 2.4% quarter-on-quarter rise [1] - According to a report from Credit Lyonnais, the growth in industrial profits in mainland China is expected to sustain the growth of Macao's gaming revenue, with investors favoring high-quality enterprises [1] Group 2 - The gaming sector is currently trading at an enterprise value to EBITDA (EV/EBITDA) multiple of 9.4 times for 2026, which is below the normalized range of 11 to 12 times for the sector in Macao [1] - Credit Lyonnais maintains its existing forecasts and ratings, identifying Galaxy Entertainment and MGM China as preferred stocks within the sector [1] - The article lists the latest stock prices and percentage changes for various gaming companies, with Sands China up 4.11%, Galaxy Entertainment up 3.37%, and others showing modest gains [1]

Group 1 - Morgan Stanley raised its year-end targets for the MSCI Hong Kong Index (MXHK) to 13,000 and 14,000 points, with potential targets for 2026 of 14,366, 15,522, and 16,679 points, indicating potential increases of 8%, 16%, and 25% respectively [1] - The recovery trend in Hong Kong has been significant since 2023, with strong financial market performance and a stabilizing residential property market, making valuations attractive compared to historical levels and other markets [1] - Morgan Stanley maintains a positive outlook for Hong Kong for the next year, favoring stocks such as Hong Kong Exchanges and Clearing (00388), Futu Holdings (FUTU.US), Galaxy Entertainment (00027), MGM China (02282), Techtronic Industries (00669), China State Construction International (03311), Henderson Land Development (00012), and MTR Corporation (00066) [1] Group 2 - Year-to-date, the MSCI Hong Kong Index (MXHK) has returned 26% in USD terms, and its forecasted P/E ratio remains 0.3 standard deviations below the 10-year average, making Hong Kong the cheapest market in the Asia-Pacific region, excluding ASEAN [2]

Core Viewpoint - Morgan Stanley reports that the MSCI Hong Kong Index (MXHK) has returned 26% in USD terms year-to-date, indicating that Hong Kong remains one of the cheapest markets in the Asia-Pacific region, excluding ASEAN, with a forecasted P/E ratio still 0.3 standard deviations below the 10-year average [1] Group 1: Market Performance - The MXHK index's year-to-date return of 26% highlights a significant recovery trend in Hong Kong since 2023 [1] - The financial market performance in Hong Kong has been strong, and the residential property market is stabilizing [1] Group 2: Valuation and Forecast - Morgan Stanley has raised its year-end targets for MXHK to 13,000 and 14,000 points, assuming the index maintains or increases its P/E ratio relative to the past 10 years [1] - Potential targets for the end of 2026 are set at 14,366, 15,522, and 16,679 points, representing potential increases of 8%, 16%, and 25% respectively [1] Group 3: Investment Recommendations - The firm maintains a positive outlook for Hong Kong, expecting continued capital inflows, and has upgraded the telecommunications services sector to "overweight" [1] - Preferred stocks include Hong Kong Exchanges and Clearing (00388), Futu Holdings (FUTU.US), Galaxy Entertainment (00027), MGM China (02282), Techtronic Industries (00669), China State Construction International (03311), Henderson Land Development (00012), and MTR Corporation (00066) [1]

Core Viewpoint - Morgan Stanley's report indicates that the MSCI Hong Kong Index (MXHK) has returned 26% in USD terms year-to-date, and its forecasted P/E ratio for the next 12 months remains 0.3 standard deviations below the 10-year average, making Hong Kong one of the cheapest markets in the Asia-Pacific region, excluding ASEAN [1] Group 1: Market Performance - The recovery trend in Hong Kong has been significant since 2023, with strong performance in financial markets and a stabilizing residential property market [1] - The valuation of Hong Kong is relatively low compared to historical levels and other markets, suggesting a sustainable inflow of capital [1] Group 2: Future Outlook - Morgan Stanley has raised its year-end targets for the MXHK to 13,000 points for the basic scenario and 14,000 points for the optimistic scenario [1] - The firm holds a positive outlook for next year, favoring investments in companies such as Hong Kong Exchanges and Clearing, Futu Holdings, Galaxy Entertainment, MGM China, Techtronic Industries, China State Construction International, Henderson Land Development, and MTR Corporation [1] Group 3: Sector Ratings - The communications services sector rating has been upgraded to "Overweight" [1]

Core Viewpoint - The report from Credit Lyonnais indicates that Galaxy Entertainment is expected to face continued pressure on profit margins in the third quarter, with an adjusted EBITDA forecasted to grow by 10% year-on-year [1] Financial Performance - The adjusted EBITDA margin for the upcoming quarter is projected to be 26.1%, which represents a decrease of 1.5 percentage points compared to the same period last year [1] - Full-year forecasts for net revenue, adjusted EBITDA, and net profit have been revised downwards by 0.3%, 2.6%, and 4% respectively [1] Future Projections - The forecasts for 2026 and 2027 remain unchanged [1] - The target price for Galaxy Entertainment is maintained at HKD 50.5, with a rating of "outperform" [1] - Galaxy Entertainment continues to be listed as one of the top two preferred stocks in the industry [1]

Core Viewpoint - Recent roadshow in Tokyo highlighted investor confidence in the view that China's industrial profit growth will continue to drive Macau's gaming revenue [1] Group 1: Industry Insights - Many investors agree with the perspective that the growth in China's industrial profits will positively impact Macau's gaming revenue [1] - The gaming sector is currently trading at an enterprise value to EBITDA (EV/EBITDA) multiple of 9.4 times for 2026, which is below the "new normal" range of 11 to 12 times set by the firm [1] Group 2: Company Preferences - The firm maintains its existing forecasts and ratings, with Galaxy Entertainment (00027) and MGM China (02282) being the preferred stocks in the sector [1]

Core Viewpoint - Recent roadshow in Tokyo revealed that many investors agree with the view that growth in China's industrial profits should continue to drive Macau's gaming revenue [1] Group 1: Industry Insights - Investors still prefer high-quality companies despite recent stock price corrections [1] - The gaming sector is currently trading at 9.4 times the 2026 enterprise value to EBITDA, which is below the range of 11 to 12 times set by the bank for Macau's "new normal" [1] Group 2: Company Preferences - The bank maintains its existing forecasts and ratings [1] - Galaxy Entertainment (00027) and MGM China (02282) are the bank's preferred stocks in the sector [1]