Macquarie: Macau gaming revenue in December is expected to increase 22% year-on-year. Galaxy Entertainment Group (stock code: 00027) is the preferred choice with a target price of 57.5 HKD.

Macquarie released a research report stating that data shows the average daily gambling revenue in Macau last week was 700 million Macau dollars (MOP) (same below), an 8% increase compared to the previous week, and the win rate in VIP rooms has returned to normal levels. Compared to November, the average daily revenue in the mass market segment has increased by 3% to 5%, while the average daily revenue in VIP rooms has grown by 2% to 5%, with a win rate of 2.7% to 2.9% (over 3% higher than November). Assuming the average daily gambling revenue for the remaining days of this month remains between 660 million and 750 million MOP, the total gambling revenue in December will reach 21.3 billion to 22.2 billion MOP, a year-on-year increase of 17% to 22%. The top stock pick for the gambling industry by the bank is GALAXY ENT (00027), with a target price of 57.5 Hong Kong dollars and a rating of "outperform the market," mainly due to its strong property project reserves and sufficient hotel room supply; the upcoming opening of the Grand Lapa Hotel by the end of this year is expected to increase the company's market share in the high-end mass market segment. In addition, the bank also suggests investors to reconsider Sands China (01928) and MGM China (02282), considering their market share growth and attractive valuation levels, with target prices of 25.2 Hong Kong dollars and 22.6 Hong Kong dollars respectively, both receiving an "outperform the market" rating.