Morgan Stanley: Macau's October gaming revenue has potential upward trends, with a short-term preference for WYNN MACAU
JP Morgan released a research report stating that, according to industry surveys, Macau's gaming revenue from October 1 to 26 was MOP 20.4 billion, with an average daily gaming revenue of MOP 785 million, while last week's gaming revenue further accelerated to MOP 793 million. The bank believes this situation may reflect pent-up demand during the Golden Week, as many players shortened their trips due to the typhoon and Mid-Autumn Festival. Morgan Stanley pointed out that there is a clear potential upward trend in gaming revenue, and if October's total gaming revenue could reach MOP 23 billion, it would set a new high in 71 months. Starting in December, due to a low base, the bank expects gaming revenue to record double-digit growth and maintain low double-digit increases in the first quarter of next year. Morgan Stanley is optimistic about Wynn Macau in the short term, giving it an "Overweight" rating, and expects its third-quarter performance to exceed expectations. In the medium term, the bank remains optimistic about Galaxy Entertainment, also giving it an "Overweight" rating. Morgan Stanley is most bearish on SJM HOLDINGS and MELCO INT'L DEV, assigning "Neutral" and "Underweight" ratings respectively, as the bank believes the valuations of both companies are relatively high compared to their fundamentals, and shareholder returns over the next 12 months are very limited
According to the Zhitong Finance APP, JP Morgan released a research report stating that based on industry surveys, Macau's gaming revenue for the first 26 days of October was MOP 20.4 billion, with an average daily gaming revenue of MOP 785 million, while last week's gaming revenue further accelerated to MOP 793 million. The bank believes this situation may reflect pent-up demand during the Golden Week, as many players shortened their trips due to the typhoon and Mid-Autumn Festival.
Morgan Stanley pointed out that there is a clear potential upward trend in gaming revenue at present, and if October's total gaming revenue could reach MOP 23 billion, it would set a new high in 71 months. Starting from December, due to a low base, the bank expects gaming revenue to record double-digit growth and maintain low double-digit increases in the first quarter of next year.
Morgan Stanley expressed a short-term bullish outlook on WYNN MACAU (01128), giving it an "Overweight" rating, and expects its third-quarter performance to exceed expectations. In the medium term, the bank remains optimistic about GALAXY ENT (00027), also giving it an "Overweight" rating. Morgan Stanley is most bearish on SJM HOLDINGS (00880) and MELCO INT'L DEV (00200), assigning "Neutral" and "Underweight" ratings respectively, as the bank believes the valuations of both companies are relatively high compared to their fundamentals, and shareholder returns over the next 12 months are very limited
