Damo: Macau's gaming revenue in December last year fell short of expectations, preferring Galaxy Entertainment (00027) and Sands China (01928)

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Macau's gaming revenue in December last year was 20.9 billion patacas, or about 2.61 billion US dollars, up 14.8% year on year, down 1% from quarter to quarter, lower than market expectations. Macau's gaming revenue reached 66.1 billion patacas in the fourth quarter of last year, about US$8.26 billion, up 15% year on year and 5.6% quarterly. EBITDA for the fourth quarter is expected to increase by more than 10% year over year.

According to the report, Macau's gaming revenue for the full year of 2025 was MOP 247 billion, or about US$31 billion, an increase of 9% over the previous year, reaching 85% of the 2019 level. Among them, midfield revenue has already exceeded 120% of 2019 levels. According to Daimo, the corporate value of the Macau gaming sector is 8.5 times EBITDA, which is still attractive compared to the average of 12.8 times over the past 15 years. The bank preferred Galaxy Entertainment (00027) and Sands China (01928). MGM China (02282) has been reduced to “in sync with the market”, and Aobo Holdings (00880) has maintained a reduction in holdings. Among them, MGM China lagged far behind in December, and there may be a chance for a short-term rebound.