JPMorgan recommends the order as GALAXY ENT (00027), followed by WYNN MACAU (01128), SANDS CHINA (01928), and MGM CHINA (02282), then SJM HOLDINGS (00880), and finally MELCO INT'L DEV (00200).
According to the Zhito Finance APP, JPMorgan released a research report forecasting that the total Gambling revenue (GGR) for the first 15 days of December this year will be 8.55 billion Macau Patacas, or about 0.57 billion Macau Patacas per day, indicating that last week's yield remained stable week-on-week at about 0.578 billion Macau Patacas per day, with mid-market GGR approximately 105%-110% of pre-pandemic levels, while the recovery rate of VIP Business revenue is only a low 20%, slightly below the recovery rate in the third quarter, with the relevant data fully in line with expectations.
The firm stated that despite the low valuation of the Macau Stocks Industry, the market's beta value may still be the biggest driving force for Macau Stocks due to a lack of positive catalysts in the short term. Therefore, emphasis will be placed on stock selections with alpha (α) opportunities, and GALAXY ENT (00027) is expected to be the top pick for 2025 due to its unique profitability momentum, especially in the fourth quarter of 2024. It also mentioned that its valuation is unexpectedly low, with the recommendation order being GALAXY ENT (00027), followed by WYNN MACAU (01128), SANDS CHINA (01928), and MGM CHINA (02282), then SJM HOLDINGS (00880), and finally MELCO INT'L DEV (00200).
