On December 1, the Macau Gaming Supervision and Coordination Bureau of China announced that Macau's gross gaming revenue for November was MOP 16.04 billion, up 435% from the previous year, which is basically in line with Citi's previous forecast of MOP 16 billion.
The Zhitong Finance App learned that on December 1, the Macau Gaming Supervision and Coordination Bureau of China announced that Macau's gross gaming revenue in November was MOP 16.04 billion, up 435% from the previous year, which is basically in line with Citi's previous forecast of MOP 16 billion. In the first 11 months, Macau's gross gaming revenue was MOP 164.49 billion, an increase of 324.9% over the previous year. After the data was released, in the market on December 1, most of the Hong Kong stock gaming sector rose. Among them, Macau Lijun (01680) rose more than 3%, Sands China Limited (01928) rose more than 2%, and stocks such as Galaxy Entertainment (00027), City Dreams International Development (00200), and MGM China (02282) followed suit.
As a city famous for the gaming industry, Macau is probably one of the hottest travel destinations in China this year. On November 30, the Hengqin Border Checkpoint of the Zhuhai Border Control Station announced that as of November 30, the number of inbound and outbound visitors via Hengqin Port in 2023 exceeded 15 million, and the number of vehicles exceeded 1.75 million, with year-on-year increases of 101.5% and 60.6% respectively, reaching record highs.
The deputy director of the Hengqin Border Checkpoint of the Zhuhai Border Control Station explained that since this year, passenger traffic at Hengqin Port has continued to rise. The average number of inbound and outbound visitors per day in the first half of the year was less than 40,000, and now it has an average of about 45,000 visitors per day. In particular, since October, cultural tourism activities have been abundant in Macau, attracting many mainland tourists to visit Macau via Hengqin Port. At the same time, with the implementation of a series of policies in Hengqin, the demand for Macao residents to work and settle in Hengqin is also growing.
According to the latest data released by the Macau Gaming Supervision and Coordination Bureau, gross gaming revenue in November 2023 was 16.043 billion patacas, up 4.35 times from the previous year, down 17.7% from MOP 19.501 billion in October this year, which is basically in line with Citi's previous forecast of MOP 16 billion. Macau's gross gaming revenue for the first 11 months of 2023 was MOP 164.492 billion, an increase of 3.25 times over the previous year.
As can be seen, compared to MOP 22.877 billion in November 2019 before the pandemic, Macau's gaming revenue in November 2023 has recovered to 70.1%.
According to the Daimo report, gross gaming revenue for December is expected to be 17.1 billion patacas, equivalent to 75% of the same period in 2019. The average daily gaming revenue is 552 million patacas, similar to the average level of summer vacation in August. The bank estimates that overall gross gaming revenue for the fourth quarter increased 8% quarterly and midfield gaming gross revenue increased 7% quarterly, equivalent to 73% and 101% in the same period in 2019, respectively.
Furthermore, the bank estimates that gaming property EBITDA rose 11% quarterly to US$2 billion in the fourth quarter, equivalent to 85% in the same period in 2019. The bank expects overall gross gaming revenue to rise 330% year on year this year, and midfield gaming gross revenue to rise 332% year on year, equivalent to 62% and 88% in 2019.
Jefferies said earlier that due to increased concerns about economic growth and the potential impact on overseas travel, gaming stock valuations continue to be out of touch with profits, but the bank still maintains its opinion that mainland residents still regard Macau as their travel destination. The bank said that among gaming stocks, it is still optimistic about Galaxy Entertainment and Sands China.
Related concept stocks:
Sands China Limited (01928): The Group will invest 3.8 billion US dollars (an average annual average of 380 million US dollars) over the next ten years to develop non-gaming elements, of which 2.7 billion US dollars are capital expenses, mainly used to develop 18,000 square meters of exhibition facilities adjacent to the Venetian Cotai Expo Center, and plans to renovate the tropical garden located on the south side of Londoners in Macau; upgrade the Cotai Arena, etc.; the remaining 1.1 billion US dollars will be used for daily non-gaming operating expenses. It will mainly be used to host events that attract international visitors, such as exhibitions, sports, entertainment, and art.
MGM China (02282): The company is a company engaged in the development and operation of casino lucky gambling business. It is also engaged in other casino gaming, related hotel and resort facilities, and the development of integrated resort businesses. The company's casino business includes VIP (VIP) gaming business, home casino gaming business, and slot machine business.
City of Dreams International Development (00200): City Boya (Macau) Co., Ltd., a subsidiary of City Boya Entertainment, was granted a 10-year gaming license to operate Lucky Gaming in Macau casinos, which officially came into effect on January 1, 2023.
Galaxy Entertainment (00027): The company develops and operates hotels, gaming and integrated resort facilities in Macau. The company's Galaxy Macau Group includes five hotels: The Ritz-Carlton Macau, Banyan Tree Macau, Macau JW Marriott Hotel, Macau Okura Hotel, and Galaxy Hotel.