HK Stock Market Move | Gambling stocks continue to fall. Morgan Stanley predicts that Macau's gambling industry's EBITDA for the last quarter only increased by 1% compared to the previous quarter, and profit margins continue to be under pressure.

The gambling stocks continued to decline recently. As of the time of this report, MGM CHINA (02282) fell by 3.18% to 10.36 Hong Kong dollars; WYNN MACAU (01128) fell by 2.16% to 5.44 Hong Kong dollars; MELCO INT'L DEV (00200) fell by 1.18% to 4.19 Hong Kong dollars; SJM HOLDINGS (00880) fell by 0.81% to 2.44 Hong Kong dollars. On the news front, Morgan Stanley released a research report stating that it is expected that the EBITDA of the Macau gambling industry in the last quarter will only increase by 1% quarter-on-quarter, while industry gambling revenue will increase by 3% quarter-on-quarter, indicating that industry EBITDA is lower than expected and profit margins continue to be under pressure. Morgan Stanley believes that the last quarter EBITDA forecasts for all companies in the Macau gambling industry will be revised downwards. However, it is expected that GALAXY ENT, WYNN MACAU, and MGM CHINA will outperform their peers. A research report from Macquarie pointed out that according to estimates from third-party data suppliers, due to seasonal slowdown before the Lunar New Year, last week's average daily gambling revenue in Macau was 628 million Macanese patacas, down 8% weekly, and it is expected that gambling revenue will further slow down before the Lunar New Year holiday on January 29. Macquarie estimates that during the Lunar New Year holiday in Macau, gambling revenue could see double-digit growth.