Citigroup: It is expected that the second quarter EBITDA of the Macau gaming industry will decline to 1.923 billion US dollars. First choices are Galaxy Entertainment Group (stock code: 00027) and Wynn Macau (stock code: 01128).

Citigroup released a research report stating that in the second quarter of this year, Macau's gaming revenue was affected by the World Cup and extremely unfavorable VIP room win rates, leading to an increase in operating leverage. It is expected that the industry's EBITDA for the second quarter will decrease to $1.923 billion, a 7% decrease year-on-year, and a 12% decrease from the previous quarter. However, because the industry's current valuation is nearly two standard deviations below historical averages, it is believed that stock prices have largely reflected the negative factors. The bank has listed GALAXY ENT (00027) and WYNN MACAU (01128) as top stock picks in the industry. Among them, the bank is observing Silver Yuan's stock for 30 days as a catalyst for upward movement, and expects the company to have the largest increase in EBITDA market share in the second quarter. In addition, the bank's preferences are MGM CHINA (02282), Sands China (01928), Melco Resorts & Entertainment (MLCO.US), and SJM HOLDINGS (00880) in that order. The bank is observing Sands China's stock for 30 days as a catalyst for downward movement, and expects the company to have the largest decrease in market share in EBITDA during the period (expected to decrease by 2.5 percentage points to around 27%).