Macau casino stocks saw widespread declines in Hong Kong trading. At the time of writing,
A recent J.P. Morgan research report noted that after incorporating February's data, gross gaming revenue (GGR) for the first two months of the year increased 14% year-on-year, recovering to 86% of pre-pandemic levels, consistent with the strong growth momentum seen in the second half of last year. However, the report suggested that March's GGR performance is unlikely to catalyze share prices for the sector, as investor focus has shifted to margins and EBITDA growth. While the report did observe initial signs of quarter-on-quarter improvement, it advised maintaining a selective approach.
UBS expressed that it maintains a positive view on Macau's gaming industry, as solid demand since the start of the year reinforces its confidence in the sustainability of gaming revenue growth this year. The firm maintains its forecast for a 5% year-on-year GGR growth for the full year, anticipating that growth will be concentrated in the first half with an approximately 8% increase, while growth in the second half is expected to slow to around 3%.