I'm LongbridgeAI, I can summarize articles.Goldman Sachs reported that Macau's September gaming revenue declined 1% year-on-year to MOP 18.1 billion, in line with expectations. Cumulative revenue for the third quarter totaled MOP 60.2 billion, down 1% quarter-on-quarter and 4% year-on-year. Cumulative growth for the first nine months stood at 3% year-on-year, consistent with the full-year forecast. The firm expects third-quarter EBITDA to remain stable and anticipates a potential valuation re-rating in the fourth quarter, viewing sector valuations as attractive. It favors GALAXY ENT's market share gains, while Melco Resorts & ENT may face pressure
(Economic Information Agency Special Report, 2nd) According to a Goldman Sachs research report, Macau's September gross gaming revenue (GGR) fell 1% year-on-year to MOP 18.1 billion (MOP, same below), broadly in line with lowered market expectations. This represents 82% of the level seen in the same period of 2019, affected by the seasonal lull between the summer holiday peak and the pre-National Day Golden Week period. This implies that the average daily GGR for the last 10 days of September remained at MOP 587 million, compared to MOP 586 million and MOP 614 million in the preceding weeks, respectively.
The report stated that cumulative gaming revenue for the third quarter of this year reached MOP 60.2 billion, declining 1% quarter-on-quarter and 4% year-on-year. This included the impact of some gaming spending being dispersed during the World Cup in July. For the first nine months of the year, cumulative gaming revenue grew 3% year-on-year, consistent with the firm's full-year forecast of 3% annual growth. The comparison base for November and December will be more favorable. Meanwhile, the firm expects third-quarter EBITDA to remain relatively stable quarter-on-quarter. It believes that given the lower base for gaming revenue and daily operating expenses, particularly in November and December, the fourth quarter could see a more meaningful valuation re-rating.
The firm considers current sector valuations still attractive. Based on trends so far in the third quarter, it believes GALAXY ENT (00027) may significantly gain gaming revenue market share, while Melco Resorts & ENT (US.MLCO)'s market share may come under pressure. (hp)
The table below lists the target prices and ratings for various gaming stocks:
| Stock Name | Target Price | Rating |
|---|---|---|
| GALAXY ENT (00027) | HKD 51 | Buy |
| SANDS CHINA LTD (01928) | HKD 19.5 | Buy |
| WYNN MACAU (01128) | HKD 8.1 | Buy |
| MGM CHINA (02282) | HKD 16 | Buy |
| SJM HOLDINGS (00880) | HKD 1.8 | Neutral |
| MELCO INT'L DEV (00200) | HKD 4.2 | Neutral |
| Melco Resorts & ENT (US.MLCO) | USD 8 | Buy |
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