Morgan Stanley Forecasts Macau June Gaming Revenue at MOP 20.8 Billion, Favors Wynn Macau and Sands China

Stock News06-02

Morgan Stanley has released a research note stating that Macau's gaming revenue for May reached MOP 22.6 billion. This figure represents a year-on-year increase of 6.7% and a month-on-month rise of 14%, surpassing market expectations.

The bank indicates that due to short-term disruptions from the World Cup in June and a high comparative base from the previous year, it forecasts June's gaming revenue to be MOP 20.8 billion. This would signify a 1% decrease compared to the same period last year, implying a 4% year-on-year growth for the second quarter as a whole.

However, the firm believes the revenue increase is insufficient to offset mounting cost pressures. Consequently, it anticipates that second-quarter EBITDA will be roughly flat year-on-year.

Wynn Macau Ltd (HKG: 1128)

Sands China Ltd (HKG: 1928)

The bank expresses a favorable view on these stocks, considering their dividend yields to be more attractive than other constituents of the Hang Seng Index.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment