GO
| HSI1 | 23,093.37 | +158.69 | 249.78B |
| HSCEI1 | 7,756.25 | +67.06 | 87.14B |
| Back Zoom + Zoom - Block Traded | |
|
2026-10-21 11:04:58 HSBC Global Investment Research issued a report saying Macau gaming demand remained weak, with 3Q GGR falling 4% YoY, compared with a 1% YoY decline in 2Q, while GGR for the first 11 days of October dropped 5% YoY. The broker noted that premium demand was under the greatest pressure, with the offshore trust tax policy launched in July, together with tighter capital controls since May, weighing on market liquidity and player sentiment. The broker expected 3Q industry GGR for Macau gaming stocks to fall 1% QoQ, while industry EBITDA was forecast to decline 4% QoQ, mainly due to elevated operating expenses, which it estimated to rise 1% QoQ. Supported by market share expansion, the broker expected GALAXY ENT (00027.HK) and SANDS CHINA LTD (01928.HK) to outperform peers with 3Q EBITDA rising 5% and 22% QoQ respectively. MGM CHINA (02282.HK)'s 3Q EBITDA was expected to remain stable QoQ. In contrast, Melco Resorts & Entertainment Limited (MLCO.US), WYNN MACAU (01128.HK) and SJM HOLDINGS (00880.HK) were expected to lose market share, with 3Q EBITDA forecast to fall between 2% and 14% QoQ. The broker lowered its forecast for Macau 4Q GGR growth from a 1% YoY decline to a 3% YoY decline, with VIP GGR expected to fall 28% YoY, while mass-market GGR was expected to rebound 2% YoY. The broker also lowered its forecasts for 2027 and 2028 GGR growth from 5% and 4% to 4% and 3% respectively, and cut its 2026-28 industry EBITDA forecasts by 3% to 4%. The broker reduced TPs for covered gaming stocks by an average of 8%. Details are shown in the table below. The sector preferences were SANDS CHINA LTD (01928.HK), GALAXY ENT (00027.HK) and MGM CHINA (02282.HK), all rated Buy. HSBC Global Investment Research's latest TP and ratings table for gaming stocks is as follows: Stock|Rating|TP (HKD) Melco Resorts & Entertainment Limited (MLCO.US)|Hold|USD5.5-癒rUSD4.8 GALAXY ENT (00027.HK)|Buy|HKD46.5 MGM CHINA (02282.HK)|Buy|HKD16-癒rHKD15.4 SANDS CHINA LTD (01928.HK)|Buy|HKD18-癒rHKD17.7 SJM HOLDINGS (00880.HK)|Hold|HKD1.3-癒rHKD1.1 WYNN MACAU (01128.HK)|Hold|HKD6.5-癒rHKD5.7 (sl/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |