HAITONG INT'L: Gambling gross revenue in March slightly exceeded market expectations, achieving resilient growth.

HAITONG INT'L released a research report stating that coal prices in the first quarter remained stable with some increase, showing both value and elasticity for the year 2026. The bank believes that the supply and demand of coal will shift from loose to tight in 2026, and coal prices have performed better than expected since the beginning of the year. In the short term, global energy prices and coal demand have been further boosted by the impact of the Middle East situation, leading to an increase in the cost of imported coal. Profitability and valuation elasticity of coal can be expected. In the medium to long term, domestic production growth may significantly decrease compared to earlier periods, while export and production expectations in countries such as Indonesia are declining. Against the backdrop of high energy prices, demand for coal power and coal chemicals shows resilience, and the coal industry is expected to maintain a high level of prosperity. Main points from HAITONG INT'L: The Gaming Inspection and Coordination Bureau of Macau released the Lucky Gambling data for March Macau's gross gambling revenue (GGR) in March increased by 15% year-on-year, reaching 87.5% of the level in the same period in 2019, surpassing market expectations. The GGR in March 2026 reached MOP 22.612 billion, a 15% increase year-on-year, a 9.6% increase month-on-month, and an 87.5% recovery to the same period in 2019. The daily GGR in March was MOP 729 million, a 1% decrease from February's MOP 737 million. Despite March being traditionally a slow season and after a weak performance in February due to the Spring Festival, the industry's GGR growth rate still showed resilience, surpassing the bank's forecast for industry growth. The industry's GGR in Q1 2026 increased by 14.3% year-on-year, recovering to 86.5% of the level in the same period in 2019. The bank expects the industry's GGR in April to achieve an approximately 12% growth, returning to 89.5% of the level in 2019. In February, Macau's visitor arrivals increased by 32.6% year-on-year, reaching 118% of the level in the same period in 2019 According to data from the Statistics and Census Service of Macau, in February 2026, the number of visitor arrivals in Macau was 4.17 million, a 32.6% increase year-on-year, a 14.4% increase month-on-month, and recovery to 117.7% of the level in the same period in 2019. Among them, the number of visitor arrivals from mainland China was 3.29 million, a 43.6% increase year-on-year, a 21.7% increase month-on-month, and recovery to 128.6% of the level in the same period in 2019, accounting for 78.9%, with non-overnight visitors accounting for 64.1%. From January to February 2026, the number of visitor arrivals in Macau was 7.82 million, a 15.1% increase year-on-year, and recovery to 112.2% of the level in the same period in 2019. Among them, the number of visitors from mainland China accounted for 76.7%, with non-overnight visitors accounting for 63.1%. In February, the hotel occupancy rate in Macau was 94.6%, showing improvements year-on-year and month-on-month, and a 2.7 percentage point increase compared to the same period in 2019 According to data from the Statistics and Census Service of Macau, in February 2026, the hotel occupancy rate in Macau was 94.6%, a 4.0 percentage point increase year-on-year, a 2.8 percentage point increase month-on-month, and a 2.7 percentage point increase compared to the same period in 2019. From January to February 2026, the average hotel occupancy rate in Macau was 93.2%, a 2.5 percentage point increase year-on-year, and a 0.8 percentage point increase compared to the same period in 2019. In February 2026, the average length of stay for hotel guests was 1.6 nights, showing stability year-on-year and month-on-month. Risk factors: macroeconomic growth lower than expected, stricter gambling regulations in Macau, intensifying competition in the overseas gambling market, etc.