JP Morgan: Macao's May gaming revenue increased by 2 to 4% year-on-year, industry preferred GALAXY ENT (00027)

J.P. Morgan released a research report stating that, according to industry surveys, the gambling revenue in Macao for the first 25 days of May this year was 17.9 billion Macao patacas (MOP) (the same below), with a daily average gambling revenue of 7.16 billion MOP. The daily average gambling revenue for last week decreased by about 5% to 6.56 billion MOP, in line with expectations. The bank continues to forecast a year-on-year increase in gambling revenue of 2 to 4% for May, with growth in June and July expected to stabilize. However, despite better-than-expected first-quarter performance for Macao gambling stocks, the industry stocks are still experiencing a pullback. The bank believes that the current entry threshold for Macao gambling stocks is very low, but the sector has not yet bottomed out, as the market is already anticipating a slowdown in gambling revenue in the coming months. The bank believes that there is no rush to buy into the market and maintains a "neutral/selective" view on the sector. For investors focusing on medium-term opportunities, stocks such as GALAXY ENT (00027), WYNN MACAU (01128), and Sands China (01928) are considered valuable. The preferred order remains Silver Entertainment, Sands China and WYNN MACAU, MGM CHINA (02282), Melco Resorts & Entertainment (MLCO.US), NagaCorp (00200), and SJM Holdings (00880).