Casino stocks have staged a broad rebound in Hong Kong trading, with MGM China (02282) climbing 3.70% to HK$10.65, Melco International Development (00200) advancing 2.81% to HK$3.29, and SJM Holdings (00880) rising 2.10% to HK$1.46 at the time of writing.

According to data released by the Macau Gaming Inspection and Coordination Bureau, gross gaming revenue for August reached 21.89 billion Macanese patacas, representing a 1.2% year-on-year decline and marking the third straight month of annual contraction. On a monthly basis, however, revenue rebounded 8.1% sequentially. For the first eight months of 2024, cumulative gaming revenue rose 3.7% year-on-year to 169.05 billion patacas.

An industry report from Haitong International notes that Macau's August gaming revenue fell 1.2% annually, slightly missing market expectations. The report highlights that the magnitude of the year-on-year decline narrowed significantly compared to July, largely driven by the summer holiday peak season.

Where the recovery heads next

The research house points out that the sustained summer boom has helped invigorate market sentiment. Haitong International projects that September industry gaming revenue will expand 6% year-on-year, recovering to approximately 87.8% of 2019 levels. This optimistic outlook is attributed to the low-base effect from last year, when typhoon disruptions forced casinos to suspend operations for 33 hours during the same period.