Jinwu Financial News | According to the First Shanghai Development Research Report, Aobo Holdings (00880)'s gross gaming revenue in the fourth quarter of 2023 increased 9.0% month-on-month to HK$6.74 billion (same figure) (recovering to 65.7% in the same period in 2019). EBITDA increased 23.8% month-on-month to 700 million yuan (recovering to 59.1% in the same period in 2019), and the performance of “Grand Lisboa” and other self-operated businesses was in line with expectations. Net profit loss continued to narrow slightly to -340 million yuan.
With Macau's recovery, the bank believes that the Group will also benefit; at the same time, climbing the “Grand Lisboa” slope will enhance the Group's long-term growth and competitive advantage; the bank continues to be optimistic about the future development of the Australian Expo. Maintain a buy rating. The target price is HK$3.28 (previously HK$2.3), based on 10.4 times the 2024 EBITDA valuation of Grand Lisboa, other self-promoted casinos and satellite casinos, and other businesses.