Core Viewpoint - The gaming stocks in Macau experienced a significant decline in early trading, with major companies like Sands China, Wynn Macau, MGM China, and Galaxy Entertainment all reporting losses. The Macau government anticipates a stable growth in the tourism sector, projecting a gross gaming revenue of 236 billion MOP for the next year, despite uncertainties in the external environment and economic conditions [1]. Group 1: Stock Performance - Sands China (01928) fell by 5.33%, trading at 19.2 HKD [1] - Wynn Macau (01128) decreased by 5.12%, trading at 6.3 HKD [1] - MGM China (02282) dropped by 3.67%, trading at 15.47 HKD [1] - Galaxy Entertainment (00027) declined by 3.15%, trading at 38.76 HKD [1] Group 2: Gaming Revenue Insights - The total gaming revenue for the first ten months of this year reached 2,054.27 million MOP, reflecting an 8% year-on-year increase [1] - Morgan Stanley reported that the gaming revenue for October was 240 million MOP, marking a 16% year-on-year growth and a 32% month-on-month increase, the strongest performance in six years [1] - The bank forecasts a slowdown in growth for November, estimating an increase of 8% to 10%, but expects a rebound in December with growth accelerating to 15% to 17% [1]

Group 1 - The gaming stocks experienced a decline in early trading, with Sands China down 5.33% to HKD 19.2, Wynn Macau down 5.12% to HKD 6.3, MGM China down 3.67% to HKD 15.47, and Galaxy Entertainment down 3.15% to HKD 38.76 [1] - The Macau government anticipates that the tourism industry will continue to develop in 2026, estimating the total gaming gross revenue for next year to be MOP 236 billion, considering external uncertainties and economic conditions [1] - For the first ten months of this year, the gaming revenue reached MOP 2,054.27 billion, reflecting a year-on-year growth of 8% [1] Group 2 - According to a report from JPMorgan, the total gaming revenue in Macau for October was MOP 24 billion, showing a year-on-year increase of 16% and a month-on-month increase of 32%, marking the strongest performance in six years [1] - The bank projects that the growth rate may slow to 8% to 10% in November due to a tougher comparison base, but expects an acceleration in gaming revenue growth to 15% to 17% starting in December, with at least low double-digit growth anticipated in the first quarter of next year [1]

Core Insights - Morgan Stanley reports that Macau's total gaming revenue for October reached 24 billion MOP, marking a year-on-year increase of 16% and a month-on-month increase of 32%, representing the strongest gaming performance in six years [1] - The recovery of mass and VIP gaming revenues has returned to approximately 125% and 35% of pre-pandemic levels, respectively [1] - Despite a lackluster performance during the Golden Week, October's gaming revenue exceeded market expectations by 11% to 12% [1] Revenue Breakdown - VIP and high-end mass gaming segments drove VIP business growth of 40% to 45%, while mass gaming grew by 12% to 13% [1] - The outlook for November suggests a more challenging base compared to October, with growth expected to slow to 8% to 10% [1] - Starting in December, the base will become more favorable, with anticipated gaming revenue growth accelerating to 15% to 17%, and at least low double-digit growth expected in the first quarter of next year [1] Stock Recommendations - The company is optimistic about Wynn Macau (01128) in the short term due to attractive valuation and high leverage [1] - In the medium term, Sands China (01928) is favored as there is an opportunity to increase dividends in February next year, with expectations of continued market share expansion in Q4 of this year [1] - Long-term prospects are positive for Galaxy Entertainment (00027), which combines value advantages with long-term growth potential [1] - All mentioned stocks are rated "Buy" with target prices set at HKD 8, HKD 24.5, and HKD 48.5, respectively [1]

Core Viewpoint - Morgan Stanley reports that Macau's total gaming revenue for October reached 24 billion MOP, representing a year-on-year increase of 16% and a month-on-month increase of 32%, marking the strongest gaming performance in six years, exceeding market expectations by 11% to 12% [1] Group 1: Short-term Outlook - The bank anticipates that the growth rate may slow to 8% to 10% in November due to a tougher comparison base compared to October [1] - Wynn Macau is viewed positively in the short term due to attractive valuation and high leverage [1] Group 2: Mid-term Outlook - Sands China is favored in the mid-term as there is an opportunity to increase dividends in February next year, and it is expected to continue expanding market share in Q4 of this year [1] Group 3: Long-term Outlook - Galaxy Entertainment is seen as a long-term investment opportunity due to its value advantage and long-term growth potential [1] - All mentioned stocks are rated as "Overweight" with target prices set at HKD 8, HKD 24.5, and HKD 48.5 respectively [1]

Core Viewpoint - UBS reports that the gaming revenue growth for Kingdom Holdings (03918) is accelerating, driven by an increase in business travelers in Phnom Penh, Cambodia, and local demand [1] Group 1: Revenue Forecasts - UBS has raised its total gaming revenue (GGR) forecasts for Kingdom Holdings for 2025-2026 by 21% to 29% due to better-than-expected performance in the first half of the year [1] - The overall gaming revenue is expected to grow by 32% this year and 10% next year [1] Group 2: Financial Projections - The EBITDA forecast for Kingdom Holdings has been increased by 46% for next year [1] - The valuation basis has been adjusted, with the target multiple raised from 5x to 7x, leading to an increase in the target price from HKD 3.8 to HKD 7.5 [1] Group 3: Rating Changes - The rating for Kingdom Holdings has been upgraded from "Neutral" to "Buy" due to the revised forecasts and valuation [1]

Group 1 - The core viewpoint of the article highlights the upward trend of Hong Kong gaming stocks, particularly MGM China, which saw a more than 4% increase after its earnings report, reaching a new high for the period [1] - Macquarie has raised its forecast for Macau's total gaming revenue in 2025 by 5% to 235.7 billion, indicating a year-on-year growth of 4% [1] - Following a strong second quarter, Macquarie expects Macau's gaming business to remain robust in the third quarter, supported by the upcoming openings of high-end hotels and elite events [1] Group 2 - Specific stock performance includes MGM China with a 4.1% increase, SJM Holdings up 1.5%, Sands China rising 1.4%, and Galaxy Entertainment gaining 0.5% [1] - MGM China's adjusted EBITDA for the second quarter grew by 2.8% year-on-year to 2.511 billion, with a quarter-on-quarter increase of 6.1%, marking a quarterly record [1] - During the period, MGM China's gaming revenue reached 977 million, reflecting a 10% year-on-year growth, with the overall market share at 16.6%, and specific shares for MGM Macau and MGM Cotai at approximately 6.2% and 10.5% respectively [1]