Lyon released a report stating that the market is overly concerned about the Macau gambling industry, so the total gambling revenue in August increased by 6% month-on-month. The dividend of the gambling stocks also surprised, and the RMB has appreciated by 3% since July. It is expected that the hotel booking situation during the Golden Week in October in Macau is also quite stable.

Lyon stated that after the gambling stocks announced their second quarter performance, they lowered their gambling revenue forecast for fiscal year 2024 and 2025 by 2%, to 28.4 billion and 29.6 billion USD, respectively. The EBITDA forecast was also reduced by 3% to 4%. Among the companies covered in the industry, five companies were rated as "outperform the market," one was rated as "hold," and the target price was generally lowered. Galaxy Ent (00027.HK) and MGM China (02282) remain the top choices in the industry.

Lyon issued a research report, and the investment ratings and target prices for the gambling stocks are as follows:

Stock | Investment Rating | Target Price (HKD)

MGM China (02282.HK) | Outperform the market | HK$16.6 -> HK$13.6

Galaxy Ent (00027.HK) | Outperform the market | HK$40.4 -> HK$40.6

Sands China Ltd (01928.HK) | Outperform the market | HK$22.2 -> HK$19.8

Wynn Macau (01128.HK) | Outperform the market | HK$7.8 -> HK$7.4

sjm holdings (00880.HK) | hold | 2.6 yuan -> 2.4 yuan