Group 1 - Gaming stocks are rising against the trend, with MGM China up 6.67% to HKD 16.64, Melco International Development up 4.02% to HKD 5.44, Sands China up 1.82% to HKD 19.06, and Galaxy Entertainment up 1.32% to HKD 38.45 [1] - MGM China reported total revenue of HKD 8.667 billion for Q2, a year-on-year increase of 8.89%, and total revenue of HKD 16.661 billion for the first half of the year, up 2.73% year-on-year [1] - The adjusted EBITDA for Q2 reached HKD 2.511 billion, marking a year-on-year growth of 2.79%, setting a new record [1] Group 2 - Citigroup raised the target price for MGM from HKD 17.1 to HKD 18 while maintaining a "Buy" rating [1] - Citigroup maintains a forecast for July 2025 GGR at MOP 21 billion, which is approximately 86% of the July 2019 level, with a year-on-year growth of 13% [1] - Macquarie recently increased its forecast for total gaming revenue in Macau for 2025 by 5% to MOP 235.7 billion, representing a year-on-year growth of 4% [1]

Group 1 - The gaming stocks are rising against the trend, with MGM China increasing by 6.67% to HKD 16.64, Melco International Development up by 4.02% to HKD 5.44, Sands China rising by 1.82% to HKD 19.06, and Galaxy Entertainment up by 1.32% to HKD 38.45 [1] - MGM China reported total revenue of HKD 8.667 billion for Q2, a year-on-year increase of 8.89%, and total revenue of HKD 16.661 billion for the first half of the year, up 2.73% year-on-year [1] - The adjusted EBITDA for Q2 reached HKD 2.511 billion, marking a year-on-year growth of 2.79%, setting a new record [1] Group 2 - Citigroup raised the target price for MGM from HKD 17.1 to HKD 18 while maintaining a "Buy" rating [1] - Citigroup maintains the forecast for July 2025 gross gaming revenue (GGR) at MOP 21 billion, which is approximately 86% of the July 2019 level, with a year-on-year growth of 13% [1] - Macquarie recently increased its forecast for total gaming revenue in Macau for 2025 by 5% to MOP 235.7 billion, representing a year-on-year growth of 4% [1]

Group 1: Hong Kong Stock Market Highlights - New China Life Insurance (01336) rose over 5%, reaching a historical high, while China Life (2628.HK) increased by 4.4%, AIA (1299.HK) by 3.5%, and China Pacific Insurance (2601.HK) by nearly 2% following the release of the 2Q25 predetermined interest rate of 1.99% by the insurance industry association [1] - Heng Rui Pharmaceutical (1276.HK) opened up 10.65% after announcing a global exclusive licensing agreement with GSK for the HRS-9821 project, excluding mainland China and certain regions [1] - Guangshen Railway (00525.HK) saw a peak increase of over 9% after signing a cooperation agreement for the Guangzhou East Station renovation project, with a total investment of approximately 16.66 billion yuan [1] Group 2: Other Notable Stock Movements - MicroPort Medical (00853.HK) surged over 8% as major shareholders agreed to sell a total of 291 million shares to various buyers, including funds under Shanghai Industrial Capital [2] - China Tobacco Hong Kong (06055.HK) rose over 5% following the release of a draft management regulation for domestic duty-free tobacco products by the National Tobacco Monopoly Administration [2] - Shenghua Land (08106) saw its stock price soar over 200% after a share acquisition agreement was reached [2] - Jiufang Zhitu Holdings (09636) increased over 10% after announcing a profit forecast for the first half of the year, expecting a net profit of 830 to 870 million yuan, a turnaround from a net loss of 174 million yuan in the same period last year [2] - Lianlian Digital (02598) rose over 7% as a report highlighted the significant role of third-party payment institutions in cross-border and multi-currency settlement services [2] Group 3: Macau Gaming Sector Performance - Gaming stocks saw a general increase, with Amax Holdings (00880) up 10.39%, Melco International Development (00200) up 5.64%, and Sands China (01928) up 3.25%. UBS reported that the average daily gaming revenue in Macau for the past week was 657 million patacas, a slight decline due to typhoon impacts, but still showing a year-on-year growth of approximately 14% [3] Group 4: US Stock Market Highlights - AMD (AMD.US) rose 2.68% as it achieved a 50% market share in the server CPU market, matching Intel for the first time [4] - Newmont Corporation (NEM.US) increased by 6.89%, reporting a second-quarter earnings per share of $1.85, up from 73 cents year-on-year [5] - Berkshire Hathaway's holding Verisign (VRSN.US) rose 6.67% despite Q2 revenue falling short of market expectations, as the company raised its full-year revenue guidance [5] - Tesla (TSLA.US) increased by 3.52% with plans to launch Robotaxi services in San Francisco [6]

Group 1: Market Overview - The Hang Seng Index rose by 0.40%, gaining 102 points to close at 25,490 points, while the Hang Seng Tech Index fell by 0.59% [1] - Hong Kong's stock market saw a morning trading volume of HKD 149.7 billion [1] Group 2: Brokerage Performance - The establishment of the China Capital Market Society has led to positive performance reports from listed brokerages, with notable gains in shares such as Guotai Junan (up 3%), Everbright Securities (up 0.54%), and CITIC Securities (up 1%) [1] Group 3: Gaming Sector - UBS reported that Macau's July gaming revenue exceeded market expectations, while Thailand recently withdrew its casino legalization bill, leading to a rise in gaming stocks. Notable increases include Suncity Holdings (up 7.79%), Melco International Development (up 3.89%), and Sands China (up 1.62%) [1] Group 4: Financial Technology and Digital Currency - Yunfeng Financial rose by 5.68% as the company plans to enter the Web 3.0 space and expand investments in stablecoins and other digital currencies [1] - OSL Group announced the completion of a USD 300 million equity financing, which will be used for license application preparations and other core areas, resulting in a 2.68% increase in its stock [1] Group 5: Innovative Products and Earnings - Guichuang Tongqiao saw a nearly 6% increase, with expected net profit growth of nearly 67% year-on-year for the first half, and several innovative products anticipated to receive approval [1] - China Tobacco Hong Kong surged over 13%, indicating that its exclusive cigarette export business is unaffected by related regulatory draft [1] Group 6: Optical Technology - Conant Optical experienced a rise of over 6%, driven by the upward trend in smart glasses and the potential growth of its XR business [2] Group 7: Gold and Coal Sectors - Laopu Gold's stock fell nearly 4% after a profit warning, despite a projected net profit increase of up to 288% year-on-year for the first half [3] - The main contracts for coking coal saw significant declines, with companies like Mongolian Coking Coal and Yancoal Australia dropping by 5% and 3.39% respectively, indicating a need to monitor policy developments [3]

Company Performance - Sands China reported 2Q25 net revenue of US$1.8 billion, reflecting a 3% year-over-year increase and a 5% quarter-over-quarter increase, with luck-adjusted property EBITDA of $559 million, down 1% year-over-year but up 3% quarter-over-quarter, recovering to 73% of 2019 levels, which was lower than expectations due to the underperformance of Parisian [1] - The company has lowered its 2025E EPS forecast from US$0.20 to US$0.13, 2026E forecast from US$0.22 to US$0.16, and 2027E forecast from US$0.23 to US$0.19, while also reducing the target price from HK$25 to HK$22.6, maintaining a Buy rating with a 21% upside potential [1][3] Industry Insights - Macau's gross gaming revenue (GGR) grew 8% year-over-year in Q2, recovering to 83% of 2019 levels, with VIP GGR rising 23% year-over-year, reaching 47% of 2019 levels, and mass GGR increasing 4% year-over-year, up 16% compared to 2019, contributing 73% of total revenue [1] - The resilient gaming revenue in Q2 is attributed to constrained supply, a busy events calendar, and strong demand from VIP and premium mass segments [1] Operational Details - Sands China's mass GGR grew 1% year-over-year, with premium mass GGR flat year-over-year (49% of mass revenue, up 6% compared to 2019) and base mass up 2% year-over-year (93% of 2019 levels), while VIP rolling chip volume declined 22% year-over-year [1] - Hotel occupancy stood at 96%, with an average daily rate (ADR) of US$226 [1] Renovation Impact - The company implemented aggressive customer reinvestment programs since late April, which supported improved performance in May and June, with all 2,405 renovated rooms and suites at the Londoner opened by late April [2] - The Londoner's annualized EBITDA target is US$1.0 billion, with 2Q25 annualized EBITDA reaching $626 million [2]

Core Viewpoint - LVS's Q2 2025 financial results show a mixed recovery in Macau operations, with GGR at $1.72 billion, reflecting a year-on-year increase of 0.3% and a quarter-on-quarter increase of 6.5%, but still lagging behind industry recovery rates [1] Group 1: Financial Performance - LVS reported a Q2 2025 adjusted EBITDA of $566 million, up 1% year-on-year and 6% quarter-on-quarter, recovering to 74% of the level seen in Q2 2019 [2] - The adjusted EBITDA margin (EM) for LVS was 31.5%, compared to 36.1% in Q2 2019, indicating a lower recovery rate due to a higher proportion of low-spending tourists [2] - The company has adjusted revenue forecasts for 2025-2027 down to HKD 57.8 billion, HKD 62.2 billion, and HKD 65.3 billion respectively, alongside adjusted EBITDA forecasts of HKD 19.1 billion, HKD 21.1 billion, and HKD 22.8 billion [4] Group 2: Market Dynamics - Macau's GGR recovery is primarily driven by a strong influx of visitors, with June 2025 GGR reaching 88% of the level seen in 2019, marking a post-pandemic high [3] - The company is facing increased competition in the market, which has affected its ability to capitalize on the return of high-end customers [1][3] - The introduction of non-gaming activities, such as concerts and events, is aimed at attracting diverse customer segments, including high-net-worth individuals and families [2][3] Group 3: Strategic Initiatives - The renovation of The Londoner is showing positive effects, with an EM of 31.9%, indicating strong appeal to visitors post-renovation [2] - The company plans to enhance customer incentives to improve performance, as management acknowledged a reliance on hotel hardware attractiveness [1] - Upcoming events, including the NBA China Games and various concerts, are expected to further boost visitor numbers and enhance the non-gaming revenue stream [2][3]

Investment Rating - The report maintains a "Buy" rating for the gaming industry, specifically for Sands China, due to its resilient performance and aggressive reinvestment strategies [3][6]. Core Insights - In Q2 2025, Macau's gaming gross revenue increased by 8% year-on-year, recovering to 83% of 2019 levels. VIP gaming revenue rose by 23%, while mass market gaming revenue grew by 4% compared to 2019 [3][6]. - Sands China reported net revenue of $1.8 billion, a 3% year-on-year increase and a 5% quarter-on-quarter increase. The adjusted EBITDA was $559 million, down 1% year-on-year but up 3% quarter-on-quarter, recovering to 73% of 2019 levels [3][6]. - The company has implemented aggressive customer reinvestment projects since late April, which have positively impacted performance in May and June. The Londoner project, with 2,405 newly renovated hotel rooms, aims for an annualized EBITDA of $1 billion, achieving $630 million as of Q2 2025 [3][6]. Summary by Sections Overseas Social Services - Sands China's Q2 2025 performance shows resilience, driven by limited supply, concert events, and high-end customer demand. The company has seen improvements due to aggressive reinvestment strategies [3][6][7]. Overseas Pharmaceuticals - WuXi Biologics expects a revenue increase of approximately 16% year-on-year for 1H25, with a gross margin improvement of about 3.6%. The net profit is projected to grow by around 56% [10][11]. - WuXi AppTec anticipates a revenue increase of over 60% for 1H25, with adjusted net profit growth exceeding 67% [10][11]. Overseas Education - The report suggests focusing on vocational education companies, particularly China Oriental Education, due to a rebound in vocational training demand and operational adjustments expected to enhance profitability [19][20]. - The education index has seen a year-to-date increase of 15.56%, although it underperformed compared to the Hang Seng Index [17].

Investment Rating - The report maintains a "Buy" rating for the gaming industry, specifically for Sands China, due to its resilient performance and aggressive reinvestment strategies [6][3]. Core Insights - In Q2 2025, Macau's gaming gross revenue increased by 8% year-on-year, recovering to 83% of 2019 levels. VIP gaming revenue rose by 23%, while mass market gaming revenue grew by 4% compared to 2019 [6][3]. - Sands China reported net revenue of $1.8 billion, a 3% year-on-year increase and a 5% quarter-on-quarter increase. Adjusted EBITDA was $559 million, down 1% year-on-year but up 3% quarter-on-quarter, recovering to 73% of 2019 levels [6][3]. - The company has implemented aggressive customer reinvestment projects since late April, which have positively impacted performance in May and June. The Londoner project, with 2,405 newly renovated hotel rooms, aims for an annualized EBITDA of $1 billion, achieving $630 million as of Q2 2025 [6][3]. Summary by Sections 1. Overseas Social Services - Sands China's Q2 2025 performance reflects resilience in the gaming sector, driven by limited supply, concert events, and high-end customer demand [6][3]. - The report highlights key companies to watch, including Ctrip, Tongcheng Travel, MGM China, Galaxy Entertainment, and Sands China [7]. 2. Overseas Pharmaceuticals - WuXi Biologics expects a revenue growth of approximately 16% in H1 2025, with a gross margin increase of about 3.6% and a net profit growth of around 56% [10][11]. - WuXi AppTec anticipates revenue growth exceeding 60% in H1 2025, with adjusted net profit growth over 67% [10]. - The report emphasizes the importance of clinical trial advancements and partnerships in the pharmaceutical sector, particularly for companies like Kintor Pharmaceutical and BeiGene [12][14]. 3. Overseas Education - The education index rose by 1.4% in the week of July 18-24, underperforming the Hang Seng Index by 4.2 percentage points [16]. - The report suggests focusing on vocational education companies, particularly China Oriental Education, due to a rebound in training demand and operational adjustments [18][19]. - Key companies in the education sector include New Oriental, TAL Education, and Gaotu, with expectations of improved profitability and market share [18][19].

Investment Rating - The investment rating for Sands China Ltd. is maintained as "Buy" with a target price of HKD 21.20 [1][10]. Core Views - The recovery of Gross Gaming Revenue (GGR) for Sands China is lagging behind the industry average, with GGR at USD 1.72 billion, reflecting a year-on-year increase of 0.3% and a quarter-on-quarter increase of 6.5%, recovering to 81% of the levels seen in Q2 2019, compared to the industry average of 83% [1][4]. - The company is overly reliant on hotel hardware appeal, which has affected performance due to insufficient customer incentives [1][4]. - The management is optimistic about the refurbishment of The Londoner, which is expected to enhance business through improved customer incentive mechanisms [1][5]. - The parent company has increased its stake in Sands China to 73.4% and plans to gradually restore dividends to pre-pandemic levels, with a projected total dividend of HKD 0.50 in 2025 [1][10]. Summary by Sections Financial Performance - Sands China's adjusted EBITDA for Q2 2025 was USD 566 million, a year-on-year increase of 1% and a quarter-on-quarter increase of 6%, recovering to 74% of the levels seen in Q2 2019 [5]. - The company’s revenue forecast for 2025-2027 has been adjusted downwards to HKD 578 billion, HKD 622 billion, and HKD 653 billion respectively [10]. Market Dynamics - The recovery of VIP and mass market segments is below industry standards, with VIP gross revenue at USD 156 million, recovering to only 28% of 2019 levels, while mass market revenue is at USD 1.376 billion, recovering to 99% of 2019 levels [4][10]. - The company has seen strong visitor traffic to Macau, but increased market competition and insufficient customer incentives have hindered performance [4][6]. Non-Gaming Initiatives - Sands China is expanding its non-gaming offerings, including hosting concerts and events to attract diverse customer demographics, with notable performances scheduled for the second half of 2025 [5][32]. - The introduction of various entertainment events is expected to enhance customer engagement and drive GGR recovery [6][32].

Investment Rating - The investment rating for Sands China Ltd. is maintained as "Buy" with a target price of HKD 21.20 [1][10]. Core Views - Sands China's gross gaming revenue (GGR) recovery is lagging behind the industry average, with the company relying heavily on hotel hardware attractiveness, which has impacted performance. The management acknowledges insufficient customer incentives [6][7]. - The renovation of The Londoner is expected to enhance customer attraction and improve business performance in the second half of 2025 [8][9]. - The company is anticipated to resume dividends, with a total payout expected to reach HKD 0.50 in 2025, following a HKD 0.25 dividend in 2024 [6][10]. Financial Performance Summary - For the fiscal year 2024, the projected revenue is HKD 55,224 million, with a year-on-year growth of 19.33%. The net profit attributable to the parent company is expected to be HKD 8,340 million, reflecting a significant increase of 43.87% [5]. - The adjusted EBITDA for Q2 2025 is reported at USD 566 million, showing a year-on-year increase of 1% and a quarter-on-quarter increase of 6% [8]. - The company’s earnings per share (EPS) for 2025 is projected at HKD 0.90, with a return on equity (ROE) of 59.35% [5]. Market and Competitive Position - Sands China's GGR for Q2 2025 was USD 1.72 billion, a year-on-year increase of 0.3%, but below the industry average of 83% recovery to pre-pandemic levels [6][7]. - The company’s VIP revenue recovery is at 28% compared to 2019, significantly lower than the industry average of 47% [7]. - The company is positioned as a leading player in the Macau gaming sector, with expectations of valuation premium due to its market leadership [10].