Goldman Sachs: Short-term correction in Macau gaming stocks, more favorable outlook for fiscal year 2025.

Goldman Sachs released a research report stating that the stock prices of Macau gaming companies have fallen by an average of 7% in the past month, similar to the performance of other tourism industry stocks. Among them, Sands China (01928) had the largest decline, falling by 15%. This is consistent with the weaker market share performance of Sands in December of last year. However, Goldman Sachs believes that despite concerns about increasing competition, they still have a positive outlook on the industry. They believe that the prospects for the fiscal year 2025 are more favorable, mainly due to recent concerns about tourist safety in countries like Thailand and other Southeast Asian countries, which may encourage mainland tourists to choose to travel to China Macau, potentially leading to an increase in tourist numbers and total gaming revenue. Furthermore, the bank believes that various measures implemented by the central government, including multiple entry permits, will benefit the development of the China Macau tourism industry. Additionally, companies like Sands and Melco International Development (00200) are expected to increase capital returns or resume dividend payments. Currently, the outlook for the Macau gaming industry for fiscal year 2025 is more positive, and Goldman Sachs has given Galaxy Entertainment (00027) a "buy" rating.