Some analysts believe that for the casinos in Macau, the biggest impact of epidemic prevention restriction measures have ended in the first quarter. Investors have reasons for the industry.It seems to be slim.
According to the Wall Street Journal, Macau, the world's largest gambling center in January, has risen to the highest level in three years, thanks to relaxing the restrictions on tourists in mainland China; the mainland is the largest in Macau in Macau.Gambling source.The average daily number of tourists in February was about 57,000, 45088 in January, and less than 16,000 per day in 2022.
According to the estimation of Chenxing Company of the research institution, although there is such a growth, tourists from the mainland still have only 39%before the crown disease epidemic.
Morning Star Company Analyst Jennifer Song said that this is "an open door after China's re -opening."However, she believes that "the level of rising to 2019 still takes time, especially the mainland tourists."To a certain extent, it is due to some restrictions, such as restrictions on the number of travels to Macau in some parts of China.
It is boosted by China's re -open, and the stocks of the Hong Kong -listed Macau casino operators have risen in the first quarter to add icing on the cake to the double -digit increase in the past 12 months, even if these companies continue to announce their net losses.
It is reported that Wynn Macau is an exception, and the stock has fallen 11%in the season. One of the reasons is that investors are disappointed by the company's unexpected debt issuance plan announced in March.Aobo Holdings also declined against the market, and the stock fell 13%, partly because the fourth quarter profit was inferior to expectations.
Morning Star predicts that the increase in the income of MGM will be the top.As part of the renewal, this casino operator was approved an additional 200 gambling table last December.Morning Star also predicts that other companies with expansion plans, including Abo Holdings and Galaxy Entertainment, will increase market share in the middle and long term.
But Jennifer said that casino operators may need to wait longer before they can make up for the losses accumulated in the past three years due to restricted operations.She said that among the six major casino operators in Macau, only Galaxy Entertainment may be able to pay dividends this year, because its cash condition is better.
Investment bank Jefferies estimates that the total revenue of Macau gaming industry may reach 49%and 64%of the pre -epidemic level in 2023 and 2024, which is higher than last year.Jefferies analysts said in a recent report that they expect that the stock price of casino operators will continue to rise in the second half of 2023 and 2024. Promoting factor will be optimistic data, not valuation.
