The Zhitong Finance App learned that UBS released a research report saying that Macau's gaming revenue in October was in line with expectations and continued to rank Sands China (01928) and MGM China (02282) as the industry's preferred stocks, both with a “buy” rating. The target prices were HK$15.9 and HK$13.6, respectively. The bank pointed out that the current valuation of the Macau gaming industry is about 7.8 times the ratio of corporate value to EBITDA predicted in 2026, which is 1 standard deviation lower than the average since 2023.
The Macau Gaming Inspection and Coordination Bureau announced that in October, gaming revenue was about MOP 21.7 billion, down about 10% year on year and up about 20% month on month, which means that the average daily gaming revenue was about MOP 699 million, up about 16% month over month, in line with market expectations. The average daily gaming revenue for the last six days of October was approximately MOP 672 million, an improvement over the previous 14 days of approximately MOP 604 million.
After Golden Week, from October 12 to 31, Macau's gaming demand was in line with seasonal performance. The average daily gaming revenue was about MOP 624 million, an increase of about 4% over September. The market expects average daily gaming revenue of about MOP 675 million in November, down about 4% year on year and 3% month on month.
In terms of other gaming stocks, UBS gave Galaxy Entertainment (00027), Macau International (00200) and Melco Entertainment (MLCO.US) a “buy” rating, with target prices of HK$44.4, HK$4.3 and $7.7, respectively; and gave Wynn Macau (01128) and Aobo Holdings (00880) “neutral” ratings, with target prices of HK$5.7 and HK$1.5, respectively.