Investment Rating - The report indicates a positive outlook for the gaming industry in Macau, expecting high single-digit growth in gaming gross revenue (GGR) for 2025 [14][15]. Core Insights - In October 2025, Macau's GGR reached MOP 24.086 billion, marking a year-on-year increase of 15.9% and a month-on-month increase of 31.7%, recovering to 91.1% of the 2019 level [14][15]. - The average daily GGR in October was MOP 777 million, up 27.4% from September's MOP 610 million, representing the highest level since the pandemic [14][15]. - The resilience of the industry was attributed to the peak Golden Week, NBA events, and concerts, despite the impact of a typhoon [14][15]. - Cumulative GGR for the first ten months of 2025 reached MOP 205.427 billion, reflecting an 8.0% year-on-year growth and 83.3% of the 2019 level [14][15]. - Upcoming events in November, including the National Games and various concerts, are expected to further boost tourist arrivals and GGR [14][15]. Summary by Sections Monthly GGR and Year-on-Year Growth - October's GGR growth was nearly 16% year-on-year, with a significant recovery trend observed [14][15]. - The daily average GGR for October was the highest post-pandemic, indicating strong market recovery [14][15]. Visitor Statistics - In September 2025, the number of inbound visitors to Macau was 2.78 million, a 9.8% increase year-on-year, fully recovering to 100.4% of the 2019 level [15]. - Cumulative inbound visitors for the first nine months of 2025 reached 29.67 million, up 14.5% year-on-year [15]. Hotel Occupancy Rates - The hotel occupancy rate in Macau for September 2025 was 84.6%, showing a slight decline year-on-year but stable compared to 2019 levels [16]. - The average hotel occupancy rate for the first nine months of 2025 was 89.3%, reflecting a 3.8 percentage point increase year-on-year [16].

Investment Rating - The report maintains an investment rating of "Buy" for the company with a target price of HKD 24.00 [1][9]. Core Insights - The company's total Gross Gaming Revenue (GGR) for Q3 2025 reached USD 1.837 billion, reflecting a year-on-year increase of 9% and a quarter-on-quarter increase of 7%, recovering to 90% of the levels seen in Q3 2019, which is above the industry average of 88% [6][9]. - The report highlights that while the overall GGR recovery is strong, the recovery in VIP and mass market segments is lagging behind the industry, with VIP GGR at USD 148 million, recovering only to 34% of 2019 levels compared to the industry average of 54% [7]. - The company is expected to increase its dividend to HKD 0.50 in 2025, compared to HKD 0.25 in 2024, indicating a positive outlook for shareholder returns [6][9]. Financial Performance - Projected revenue for the company is expected to grow from HKD 55.224 billion in 2024 to HKD 66.820 billion by 2027, with a compound annual growth rate (CAGR) of approximately 9.72% [5]. - The net profit attributable to the parent company is forecasted to increase from HKD 8.340 billion in 2024 to HKD 11.878 billion in 2027, reflecting a significant growth trajectory [5]. - The report anticipates an increase in the company's EBITDA from USD 6.01 billion in Q3 2025, which is 80% of the levels seen in Q3 2019, indicating a recovery in operational efficiency [8]. Market Dynamics - The company is leveraging innovative gaming solutions such as smart gaming tables and side betting to enhance market share, particularly in the mass market segment [6][7]. - The report notes that the Londoner property has maintained its attractiveness, with a year-on-year GGR increase, and is expected to benefit from upcoming non-gaming events, including concerts and sports events, which could drive additional foot traffic [8][9]. - The report suggests that the overall gaming sector in Macau is likely to continue its upward trend in the second half of 2025, supported by favorable policies and increased consumer spending [9].

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].