As per reports, gaming stocks experienced a collective surge today. As of the time of writing, Sands China Ltd (01928) was up 5.04%, trading at HKD 18.98; Wynn Macau (01128) rose 4.6%, priced at HKD 6.59; Melco International Development (00200) increased by 4.45%, reaching HKD 4.69; and Galaxy Entertainment (00027) saw a rise of 3.94%, valued at HKD 38.48. On the news front, China International Capital Corporation (CICC) has maintained its 2025 forecast for total gaming revenue in Macau while also raising its predictions for 2026. The firm anticipates that total gaming revenue will grow by 9% and 5% year-on-year in the next two years, returning to 84% and 88% of 2019 levels, respectively. Specifically, it predicts that mass gaming revenue will increase by 7% and 6% year-on-year, achieving 119% and 126% of 2019 levels. The forecast for VIP gaming revenue suggests a growth of 19% year-on-year in 2025, followed by a 5% decline in 2026, returning to 29% and 28% of 2019 levels. Huatai Securities believes that despite the temporary disruptions caused by typhoons during the National Day holiday and late September, visitor numbers to Macau, adjusted for weather impacts, are largely in line with government expectations and exceed levels from the same period in 2019. The daily average gaming revenue during the National Day holiday also recorded a slight year-on-year increase. The firm views that core drivers for the sector post-holiday include policy benefits from “multiple entries with one permit” between Zhuhai and Macau, the wealth effect from the "gold stock coin" boosting consumer sentiment, and synergistic effects from non-gaming events such as the NBA China Games and the National Games.
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