JP Morgan: Macao's fourth quarter gaming revenue may increase by 15% to 16% year-on-year.

JPMorgan Chase released a research report stating that the total gambling revenue in Macau for the first 21 days of December was 14.65 billion Macau dollars, with an average daily revenue of about 697 million Macau dollars. With the normalization of win rates and luck factors, the average daily gambling revenue for the past week reached 700 million dollars, higher than the previous week's 650 million dollars. Due to a low base, the average daily gambling revenue in December so far has increased nearly 20% compared to December last year, reaching 587 million dollars. The bank believes that it originally predicted a year-on-year increase of 15% and 13% in total gambling revenue for December and the fourth quarter, respectively, and there is further room for upward revision, as current data indicates that fourth-quarter gambling revenue may increase year-on-year by 15% to 16% or quarter-on-quarter by 6% to 7%, which could also support the market's continued upward revision of expectations. The bank believes that the current valuation of the gambling sector is low and expects significant revaluation in the coming seasons as profitability visibility improves and the number of gamblers increases. In terms of stocks, the bank is optimistic about Sands China (01928) in the short term, mainly due to expectations of increased dividends by the company and an improvement in market share and profits in the fourth quarter. In the long term (over 12 months), the bank prefers GALAXY ENT (00027), believing it has a combination of solid value and long-term growth potential. On the other hand, the bank continues to advise against Melco International Development (00200) and SJM Holdings (00880).