The Zhitong Finance App learned that the East Asia Securities Research Department published a report stating that the current price valuation of Macau gaming stocks is attractive, giving the Macau gaming industry an “increase” rating. Investors can give priority to gaming stocks with market share growth potential and valuations that are discounted compared to peers. As the mainland economy gradually stabilizes, demand for mainland travel is steady, and traffic gradually returns to normal, it is expected that Macau's gaming revenue may increase to MOP 233 billion this year, an increase of nearly 28% over last year, and return to about 80% in 2019.

The report predicts that the number of inbound visitors to Macau will return to the level of 72% in 2019 in 2023, and can further recover to the level of 86% in 2019 this year. At the same time, gross gaming revenue contributed by each traveler is expected to increase by 6% this year compared to last year, similar to the nominal 6.3% increase in disposable income of mainland residents in the first three quarters of last year compared to last year.

The report points out that gross gaming revenue continues to rise, and profits from Macau gaming stocks are expected to continue to recover in the short term. In addition, the US has an opportunity to cut interest rates this year, and reducing refinancing costs is beneficial to expanding the net profit margin of Macau gaming stocks. Some gambling companies may even resume symbolic dividends this year.

The report mentioned that in the first three quarters of 2023, gross gaming revenue from midfielders accounted for 75% of total gross gaming revenue, compared to only about 54% in the same period in 2019. Due to the high profit margin of gross revenue from midfield gaming, the EBITDA recovery of Macau gaming stocks will also be faster than gross gaming revenue. It is expected that the EBITDA of the industry in 2024 will recover to 95% in 2019.