Goldman Sachs: The performance of the Macau gaming industry kicks off with an expected temporary decline in industry revenue in the previous quarter.

Goldman Sachs Group, Inc. released a research report stating that Sands China Ltd (01928) will disclose its quarterly results at the end of this month, kicking off the performance of Macau gaming stocks for the quarter. Following Sands China, MGM China (02282) (on February 13th), Wynn Macau (01128) (early February), Melco Resorts & Entertainment (MLCO.US) (late February), Galaxy Entertainment Group (00027) (February 27th), and SJM Holdings (00880) (March 4th) will report their quarterly results. Considering the brief downturn in Macau's gaming revenue last quarter and higher promotional budgets, the firm has adjusted its EBITDA forecasts for Macau gaming stocks for the years 2024 to 2026 down by 8% to up by 8%, with target prices adjusted down by 7% to up by 13%. The firm believes that while concerns about the reversal of the promotional budget trend may again intensify market competition, it maintains a constructive view on Macau gaming stocks, with a preference for Sands China. The firm believes that the opening of the Londoner hotel planned for mid-year could enhance the company's competitiveness in the high-end market segment. It is expected that Sands may face downside risks in the short term due to a low market share in the gaming market, but the trend is expected to improve as the 2400 Londoner Deluxe Corporation hotel suites are gradually launched in the first half of the year. At the same time, the firm believes that the market has relatively low expectations and that the improvement in market share in the fourth quarter for Wynn and MGM Resorts International may help boost stock performance in the short term, although the sustainability of positive factors remains uncertain.