The Hong Kong-listed entities of Macau’s six casino concessionaires all saw their share prices notch strong gains on Wednesday, just hours after the Gaming Inspection and Coordination Bureau (DICJ) announced the highest monthly gross gaming revenues in three years.
As reported by Inside Asian Gaming, Macau’s casinos recorded GGR of MOP$11.58 billion (US$1.43 billion) in January, the highest monthly GGR figure since January 2020 following the removal of almost all remaining COVID-19 border restrictions on 8 January.
Stock prices quicky responded in kind, led by Melco International Development – parent company of Melco Resorts – which saw its shares climb 4.92% to HK$10.66. Since the Macau government announced on 6 January plans to dump border restrictions, Melco’s stocks have risen 17.9%.
Also climbing strongly on Wednesday was MGM Resorts, up 4.66% to HK$10.34, and Galaxy Entertainment Group, up 3.68% to HK$56.40.
Wynn Macau climbed 3.13% to HK$9.22, Sands China by 2.22% to HK$29.95 and SJM Holdings by 1.81% to HK$4.51.
In a Wednesday note, CBRE Research analyst John DeCree noted that daily run rate in January was likely tracking even higher than the monthly GGR figure implies, given the border only fully reopened on 8 January, with mass revenues recovering to around 70% of 2019 levels.
“This run-rate level of mass market GGR would put most operators on the path to meaningful EBITDA contribution and even positive cash flow in 1Q23 — ahead of expectations,” DeCree said.
“Assuming the recovery can continue to gain traction, our market wide estimates (and consensus estimates) are likely too conservative for 2023. As we enter the 4Q22 earnings cycle, we expect more commentary from Macau casino operators throughout February, giving us insight into whether January’s recovery trajectory is sustainable or even accelerating.”
Macau gaming stock movements on Wednesday:
|Concessionaire||Tuesday close (HK$)||Wednesday close (HK$)||Difference||% change|
|Melco Int’l Devt||$10.16||$10.66||$0.50||4.92%|
|Galaxy Ent Group||$54.40||$56.40||$2.00||3.68%|