Understanding the Market | Gaming stocks continue to decline this month, Sands China down over 5%, Melco International Development down over 4%
Gaming stocks continued to decline today, with Sands China falling 5.41% to HKD 19.05, Melco Int'l Dev dropping 4.05% to HKD 4.98, Wynn Macau decreasing 3.65% to HKD 6.34, and MGM China down 3.16% to HKD 14.4. Although JP Morgan expects October GGR to grow by 11% to 13% year-on-year, the growth is only 3% compared to last year's high base, and visitor numbers have dropped by 25% due to the impact of the typhoon. UBS pointed out that Wynn Macau's market share has significantly increased, with Galaxy Entertainment and Wynn's market shares exceeding expectations
According to Zhitong Finance APP, gaming stocks continued to decline today, extending the downward trend for the month. As of the time of publication, Sands China (01928) fell by 5.41% to HKD 19.05; Melco International Development (00200) dropped by 4.05% to HKD 4.98; Wynn Macau (01128) decreased by 3.65% to HKD 6.34; MGM China (02282) declined by 3.16% to HKD 14.4.
In terms of news, JP Morgan previously released a research report stating that Macau's total gaming revenue (GGR) for the first five days of October reached MOP 5.5 billion, with an average daily revenue of about MOP 1.1 billion, marking the best Golden Week performance in the past five years. However, compared to last year's very high base, it only grew by 3% year-on-year, which is lower than the bank's and market expectations. The visitor volume from October 1 to 5 remained flat, further dragging down GGR growth, as the typhoon caused a 25% drop in visitor numbers on October 5. Nevertheless, the bank is not concerned about the currently seemingly weak growth momentum, expecting October GGR to grow by 11% to 13% year-on-year, reaching MOP 23 billion, a six-year high.
UBS stated that Wynn Macau's market share of gaming revenue significantly increased in September, rising by about 200 basis points month-on-month, driving its market share for the third quarter up by 150 basis points quarter-on-quarter; the second-highest company in terms of market share increase was Galaxy Entertainment, which saw a month-on-month increase of about 50 basis points in September, but still fell by 30 basis points in the third quarter. The bank noted that relative to market expectations, the market shares of Galaxy Entertainment and Wynn were above expectations, while MGM, Sands China, and Galaxy were below expectations
