--- title: "Morgan Stanley: Cash flow and dividends of Macau gaming stocks continue to grow, prefer Galaxy Entertainment and Sands China" description: "Morgan Stanley pointed out that the cash flow and dividends of Macau casinos continue to grow, preferring Galaxy Entertainment and Sands China. Despite a moderate performance during the Spring Festiva" type: "news" locale: "en" url: "https://longbridge.com/en/news/276815686.md" published_at: "2026-02-25T01:22:58.000Z" --- # Morgan Stanley: Cash flow and dividends of Macau gaming stocks continue to grow, prefer Galaxy Entertainment and Sands China > Morgan Stanley pointed out that the cash flow and dividends of Macau casinos continue to grow, preferring Galaxy Entertainment and Sands China. Despite a moderate performance during the Spring Festival, overall gaming revenue is expected to achieve low single-digit growth. Morgan Stanley holds a cautious attitude towards industry profit margins, believing that while the number of visitors to Macau is increasing, per capita spending is declining. Ratings for major casinos include: Sands China and Galaxy Entertainment as overweight, MGM China in line with the market, Wynn Macau and Melco Resorts as overweight, and SJM HOLDINGS as underweight Morgan Stanley's research report points out that despite external hopes for the spring tail effect of Macau casinos, the performance during the Lunar New Year was moderate, and Morgan Stanley is concerned about the profit pressure brought by promotional activities at various casinos. On a positive note, Macau's gaming revenue performed better than other Chinese consumer stocks, with no artificial intelligence risks; additionally, the continuous growth in cash flow and dividends makes the valuations of gaming stocks attractive. Morgan Stanley stated that although casino operators emphasize that promotional activities have stabilized, they have previously heard such expressions and lack confidence that industry profit margins have bottomed out. Although the performance in the early part of the Spring Festival holiday was weak, it rebounded in the latter part, and it is expected that the total gaming revenue for this month will record low single-digit growth year-on-year, but a 13% year-on-year growth can still be achieved in the first two months of this year. However, Morgan Stanley pointed out that while the number of visitors to Macau is growing strongly, per capita consumption is declining, and there is a bottleneck in hotel room supply. The average age of gamblers has been decreasing over time. Morgan Stanley prefers Galaxy Entertainment (00027.HK) as an industry representative and high-dividend-paying Sands China (01928.HK). Wynn Macau (01128.HK) and Melco Resorts (MLCO.US) are undervalued; SJM Holdings (00880.HK) may experience significant fluctuations in EBITDA in 2026; the following are Morgan Stanley's ratings for Macau gaming stocks: Stock | Investment Rating ### Related Stocks - [SCHYY.US - Sands China](https://longbridge.com/en/quote/SCHYY.US.md) - [00880.HK - SJM HOLDINGS](https://longbridge.com/en/quote/00880.HK.md) - [01928.HK - SANDS CHINA LTD](https://longbridge.com/en/quote/01928.HK.md) - [WYNN.US - Wynn Resorts](https://longbridge.com/en/quote/WYNN.US.md) - [LVS.US - Las Vegas Sands](https://longbridge.com/en/quote/LVS.US.md) - [00027.HK - GALAXY ENT](https://longbridge.com/en/quote/00027.HK.md) - [MLCO.US - Melco Resorts & ENT](https://longbridge.com/en/quote/MLCO.US.md) - [MGM.US - MGM Resorts](https://longbridge.com/en/quote/MGM.US.md) - [BJK.US - VanEck Gaming ETF](https://longbridge.com/en/quote/BJK.US.md) - [GXYYY.US - Galaxy Entertainment Group](https://longbridge.com/en/quote/GXYYY.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Citic Securities Sticks to Its Buy Rating for Netease Inc (9999) | Citic Securities analyst maintained a Buy rating on Netease Inc on February 22 and set a price target of HK$234.00.Claim | [Link](https://longbridge.com/en/news/276805906.md) | | Gaming & Leisure Properties Officer Sells Shares | Brandon John Moore, President, COO, and Secretary of Gaming & Leisure Properties, sold 18,374 shares of common stock on | [Link](https://longbridge.com/en/news/276795724.md) | | Roblox CEO Baszucki David Reports Open Market Sale Of 4,045 Shares Of Class A Common Stock On Feb 20 | Roblox CEO David Baszucki reported the open market sale of 4,045 shares of Class A common stock on February 20 at an ave | [Link](https://longbridge.com/en/news/276799143.md) | | Boxing-Shields dominates Crews-Dezurn to defend undisputed heavyweight crown | Claressa Shields successfully defended her undisputed heavyweight championship with a unanimous decision victory over Fr | [Link](https://longbridge.com/en/news/276615020.md) | | Bragg Gaming Posts Record 2025 Preliminary Results and Sets 2026 Guidance Focused on Margin and AI Efficiencies | Bragg Gaming Group Inc. reported preliminary results for Q4 and full year 2025, with Q4 revenue expected at EUR 27.7 mil | [Link](https://longbridge.com/en/news/276773348.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.