Despite ongoing hopes for a longer tail effects of Macau casinos, the Lunar New Year (LNY) performance was moderate, and Morgan Stanley was concerned about profit pressure from promotional activities at various casinos, according to Morgan Stanley's research report.

On the positive side, Macau's GGR performance is better than other Chinese consumers, with no AI risks; also, continuous growth in cash flow and dividend makes casinos' valuations attractive.

Related NewsCLSA Expects Apr Macau GGR +11% YoY to MOP20.9B; Top Picks Galaxy Entertainment (00027.HK) and MGM China (02282.HK)
The broker preferred GALAXY ENT (00027.HK)  0.000 (0.000%)    Short selling $61.73M; Ratio 80.280%   as an industry representative and SANDS CHINA LTD (01928.HK)  +0.030 (+0.176%)    Short selling $41.04M; Ratio 133.133%   for its high dividends. WYNN MACAU (01128.HK)  +0.050 (+0.891%)    Short selling $5.00M; Ratio 96.511%   and Melco Resorts & Entertainment (MLCO.US)      are cheap, while SJM HOLDINGS (00880.HK)  -0.010 (-0.467%)    Short selling $1.81M; Ratio 38.099%   may experience significant EBITDA fluctuations in 2026. The table below shows Morgan Stanley's ratings for Macau casinos:

Stock | Rating
================================
SANDS CHINA LTD (01928.HK)  +0.030 (+0.176%)    Short selling $41.04M; Ratio 133.133%   | Overweight
GALAXY ENT (00027.HK)  0.000 (0.000%)    Short selling $61.73M; Ratio 80.280%   | Overweight
MGM CHINA (02282.HK)  -0.180 (-1.587%)    Short selling $10.17M; Ratio 112.435%   | Equalweight
WYNN MACAU (01128.HK)  +0.050 (+0.891%)    Short selling $5.00M; Ratio 96.511%   | Overweight
Melco Resorts & Entertainment (MLCO.US)      | Overweight
SJM HOLDINGS (00880.HK)  -0.010 (-0.467%)    Short selling $1.81M; Ratio 38.099%   | Underweight
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-02 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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