Changes in Hong Kong stocks | Gaming stocks continue to fall Macau gaming profit margins under pressure, institutions expect industry EBITDA to fall sequentially in the third quarter

The Zhitong Finance App learned that gaming stocks continued to decline. As of press release, Galaxy Entertainment (00027) fell 4.29% to HK$35.7; Sands China (01928) fell 4.17% to HK$18.4; MGM China (02282) fell 3.87% to HK$10.44; and Wynn Macau (01128) fell 3.26% to HK$6.24.

According to the news, Macquarie released a research report saying that due to a decrease in overall promotion activities and macroeconomic impact on demand, Macau's third-quarter gaming revenue and gaming industry EBITDA forecasts were lowered by 5% and 8%, respectively. The bank expects that the market share of Macau Expo, Wynn Macau, and Sands China will increase quarterly in the third quarter, while MGM China, GEG, and Macau Expo Asia will record declines. The bank also pointed out that the retail industry in Macau continued to face challenges in the third quarter, but passenger traffic and retail sentiment improved during the National Day Golden Week.

According to the Lyon Research Report, gaming stocks will start announcing the third quarter results at the end of October. Due to the 1.5% month-on-month decline in gaming revenue in the third quarter in Macau and continued pressure on profit margins, the industry's Ebitda is forecast to fall 10% month-on-month to US$1,748 million. Morgan Stanley said that Macau gaming companies' property EBITDA is expected to fall 8% quarterly to US$1.71 billion in the third quarter (while gaming revenue for the third quarter only fell 1% quarterly), falling short of expectations, falling 3% compared to the second quarter; returning to 79% in the third quarter of 2019.