UBS released a report, citing Macau’s visitor statistics for April. The average daily visitor arrivals faded about 1% MoM to an average of 87,000 per day, about 76% of the 2019 level, mainly dented by the decline in Hong Kong tourist arrivals. Due to the high base effects of the Easter holidays in March, the number of Hong Kong tourists dropped about 9% in April.
According to the report, Mainland China will add eight new cities for the Individual Visit Scheme (IVS) to Hong Kong and Macau, effective 27 May, which was expected to continue to juice the growth of Macau tourists. Assuming that the mass customers account for 85-90% of overall GGR, it was estimated that the mass per capita spend was flattish in April, at MOP6,100-6,500/ visitor (equivalent to 135-140% of 2019 level), reflecting resilient premium demand.
UBS remained bullish on the gaming sector, with GALAXY ENT (00027.HK) -0.900 (-2.258%) Short selling $87.05M; Ratio 19.053% and Melco (MLCO.US) as its top picks.
Shares | Investment Ratings | Target Prices (HK$)
Melco (MLCO.US) | Buy| US$11.4
MELCO INT'L DEV (00200.HK) -0.190 (-2.853%) Short selling $21.73M; Ratio 19.971% | Buy| 7.3
GALAXY ENT (00027.HK) -0.900 (-2.258%) Short selling $87.05M; Ratio 19.053% | Buy| 46.7
SANDS CHINA LTD (01928.HK) -0.540 (-2.703%) Short selling $220.48M; Ratio 40.260% | Buy| 26.9
WYNN MACAU (01128.HK) -0.230 (-2.934%) Short selling $11.57M; Ratio 10.118% | Buy| 8.6
SJM HOLDINGS (00880.HK) -0.070 (-2.295%) Short selling $3.15M; Ratio 9.399% | Buy| 3.4
MGM CHINA (02282.HK) -0.320 (-2.241%) Short selling $17.55M; Ratio 23.644% | Buy| 15.5
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-24 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
