Dahua Jixian released a research report saying that to maintain “increase” in the Macau gaming industry, the preferred choice is to switch to Sands China (01928) and maintain the target price of HK$28.6. It is believed that the recovery of the group's gaming revenue will accelerate from the first quarter of next year.
According to the report, Macau's gaming revenue in October this year was 20.8 billion patacas (same below), up 7% year on year and 20% month on month, slightly better than market expectations, and recovered to 79% of 2019 levels. Due to the record-breaking performance during the Golden Week, this figure also hit a new high after the pandemic. In addition, the number of visitors to Australia last season also recovered to 93% of 2019 levels, but the share of overnight visitors declined quarterly.
