UBS Group released a report, stating that according to its channel survey, the average gross revenue of Macau gambling in the past seven days is about 514 million Macau patacas, which is about 65% of the second quarter of 2019. The gross revenue of mid-field gambling accounted for 90% to 95% of the second quarter of 2019. Compared with the average daily amount of 533 million Macau patacas in the previous six days, it decreased due to seasonal factors, VIP room win rate decline and the influence of the European Cup football. The average daily gross gambling revenue in this month decreased by 11% to 578 million Macau patacas per month, slightly worse than the 9% decrease per month from June 2015 to June 2019. Among them, the gross revenue of mid-field gambling decreased by 10% to 12% per month, and the gross revenue of VIP rooms decreased by 10% per month. The win rate in the VIP room was 2.6% to 2.8%.

In addition, according to the bank's tracking data of 33 Macau hotels, summer room rates have increased to HK$3,400 per night, up 4% per week and 15% per year. The bank expects the recent addition of 8 mainland cities for independent travel and increase in summer flights will support tourist growth.

The bank pointed out that the current valuation of Macau gambling stocks is equivalent to an estimated enterprise value-to-EBITDA multiple of about 9.5 times, which is 1.5 standard deviations lower than the historical average. The bank maintains a positive view on Macau gambling stocks and recommends Melco Resorts & Entertainment (MLCO.US) and Galaxy Entertainment Group Limited (00027.HK).