UBS: Macau's gaming revenue operation rate remained stable in early January, preferring GALAXY ENT (00027) and WYNN MACAU (01128).

UBS released a research report stating that, according to the bank's channel check, due to the calendar effect, the average daily gambling revenue in the past seven days was approximately 693 million Macau patacas, lower than the approximately 800 million Macau patacas in the first four days of this month. This brings the average daily gambling revenue for this month to a stable about 732 million Macau patacas, a year-on-year increase of about 24% and a month-on-month increase of about 9%, outperforming the seasonal performance of a 2% month-on-month increase from 2015 to 2019. Among the various business segments, the mid-level business's daily gambling revenue operation rate increased by 8% to 10% month-on-month, while the VIP room turnover increased by 6% to 8% month-on-month, with a win rate of 2.7% to 2.9% (compared to a win rate below 3% in December). Based on market expectations of an average daily gambling revenue of approximately 677 million Macau patacas in January (a year-on-year increase of about 15%), this means that for the remaining 20 days in January, the average daily gambling revenue operation rate needs to reach approximately 647 million Macau patacas. The sector is currently trading at 8.8 times the estimated enterprise value/EBITDA for 2026, which is lower than its two-year average by 0.6 standard deviations. The bank prefers GALAXY ENT (00027) and WYNN MACAU (01128) as its top picks in this sector.