Gold Wuhua News | Morgan Stanley's recent Research Reports indicate that the Macau gambling industry is expected to achieve slight but stable growth in 2025. The report estimates that the total gambling revenue (GGR) in Macau will reach 238 billion patacas in 2025, a year-on-year increase of 5%, while the earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to reach 8 billion USD, a year-on-year increase of 6%. Although market expectations for the gambling industry are relatively cautious, Morgan Stanley believes that as various gambling companies increase non-gambling investments and improve service quality, market share and profitability are expected to further improve.

Morgan Stanley believes that although the growth rate is relatively moderate, the market structure is gradually optimizing. The recovery of the gambling industry will benefit from the continuous growth of mainland Chinese tourists and the Macau government's proactive support policies for the gambling industry. In addition, as various gambling companies continue to launch new projects and facilities, such as Sands China's Londoner project and GALAXY ENT's Capella hotel, market competitiveness will be further enhanced.

Morgan Stanley has provided forecasts and Target Prices for the following companies.
The companies rated with 'Shareholding' are:
MGM CHINA (02282) Target Price adjusted from 17 HKD to 12.2 HKD;
Sands China (01928) Target Price adjusted from 23.5 HKD to 25 HKD;
WYNN MACAU (01128) Target Price adjusted from 8 HKD to 6.7 HKD;
The companies rated with 'Hold' are:
GALAXY ENT (00027) has adjusted its Target Price from HKD 29.5 to HKD 37.5;
MELCO INT'L DEV (00200) has adjusted its Target Price from USD 9.6 to USD 7.5;
SJM HOLDINGS (00880) is given a "Shareholding" rating, with the Target Price adjusted from HKD 2.25 to HKD 2.45.