The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it downgraded Galaxy Entertainment (00027) to “neutral” and downgraded Melco International Development (00200) to “reduced holdings,” based on disappointing recovery progress and a slight decline in EBITDA. The bank sees MGM China (02282) and Wynn Macau (01128) as “clear winners.”

According to the report, the current valuation of the Macau gaming industry is cheap, especially considering such a steady pace of recovery so far, but simply being cheap is not enough to drive up stock prices, unless there are more catalysts to drive reratings. The bank will continue to search for stocks that outperform the market, as the industry still lacks a catalyst from July to August. It is also believed that Melco International and GEG can be used as funding sources for the next two to three months.