On May 13, it was reported that gaming stocks were higher in early trading. As of press release,$WYNN MACAU (01128.HK)$rose 3.88% to HK$8.30;$SJM HOLDINGS (00880.HK)$up 4.14% to HK$3.02;$MGM CHINA (02282.HK)$rose 2.33% to HK$14.92;$SANDS CHINA LTD (01928.HK)$increased by 2.74% to HK$20.6;$GALAXY ENT (00027.HK)$It rose 1.88% to HK$38.00.
According to the news, the Macquarie Research Report indicated that the average daily revenue (ADR) of the Macau gaming industry for the first 5 days of May was 910 million patacas (same below). The bank believes that although many travellers' itineraries have been cancelled due to the recent bad weather in Macau and Guangdong, the ADR level since May is still 47% higher than the previous month. The bank assumes that ADR for the rest of May will reach 580 million to 650 million yuan. Coupled with third-party data estimates, Macau's total gaming revenue in May will reach 19.6 billion to 21.5 billion yuan, or 76% to 83% of 2019 levels.
Furthermore, the new travel policy for mainland residents to Hong Kong and Macau officially came into effect on May 6. Galaxy Securities believes that this will have a significant positive impact on the Macau gaming industry in the short, medium and long term. In particular, its current rule that group travelers can travel multiple times between Hengqin and Macau will greatly enhance the long-term space of the Macau travel market, and there is a possibility that it will be further liberalized to free travelers in the future. Furthermore, the increase in the length of stay of business travelers is expected to provide important support for the growth of middle and high-end midmarket spending.