Macau: casino revenue in the first two months is still weak, with a 9% annual growth forecast having downside risks.

Macquarie released a research report stating that among the Macau gaming stocks, they are optimistic about GALAXY ENT (00027) due to its strong property portfolio and large inventory of hotel rooms. Meanwhile, Sands China (01928) has become more attractive as the impact of renovations gradually diminishes. The report stated that last week, Macau recorded an average daily gaming revenue of 820 million Macau dollars, mainly driven by the Lunar New Year holiday, with a daily gaming revenue of 900 million dollars from February 1 to 5. During the 8-day Lunar New Year holiday period, inbound tourist numbers decreased by 3.5% year-on-year, with tourists from Mainland China and Hong Kong decreasing by 3.2% and 8.9% respectively. The bank believes that due to the weak gaming revenue in the first two months of the year, there may be downside risks to the forecast of a 9% year-on-year increase in gaming revenue for the full year.