The Macao SAR government announced that with effect from March 3, the requirement to show negative nucleic acid test results for entering casinos will be lifted, but casinos will still need to continue to strictly implement other epidemic prevention measures.

Today, the gaming plate has emerged as a new force, rising to the top! Galaxy Entertainment and Melco International rose more than 6%, leading the plate.

According to Futuo Niuniu market data, the sector has risen 24% since February and nearly 4% this month.

With the receding of the epidemic, the landing of vaccines and the recovery of customs clearance, the gaming industry is about to recover, and many major banks have turned to be optimistic about the follow-up performance of the gaming industry. The following is the summary of the views of the major banks on the gambling section. I hope it will be helpful to the cattle friends.

JPMorgan Chase & Co: after the recent rise, Macau gaming stocks still have room to rise.

Macao announced that starting from March 3, there will be no need to show nucleic acid test results when entering entertainment venues. JPMorgan Chase & Co reported that the impact of this change on demand is limited, but there is positive progress in the direction, and Macau gaming stocks still have room to rise.

The bank said that since mid-July last year, almost no Macao locals have entered casinos since they were required to show negative nucleic acid test certificates when entering entertainment venues, and the new policy will help revive the demand of Macao locals. however, given that Macau's requirements for negative certificates for all visitors arriving in Macao remain unchanged, the change in this rule is unlikely to affect entry demand.

Xiaomo said that taking into account factors such as the expected return to normal in 2022 and the gradual recovery of gambling revenue.It is believed that after the recent rise, Macau gaming stocks still have room to rise.

Soochow Securities: vaccine landing promotes recovery, Macau gaming welcomes the dawn

Soochow Securities said that the resumption of customs clearance + vaccine landing, Macau gambling to welcome the dawn of recovery, the number of tourists bottomed out. In January, the number of tourists reached 557000, and the hotel occupancy rate has exceeded 50%, leading the gradual recovery of the gambling industry. Since February 23, all mainlanders entering Macao do not need to be quarantined. At the same time, COVID-19 vaccination will begin on March 3, and the impact of the epidemic will gradually fade. The dark moment for Macao's gaming industry is over, and recovery is just around the corner.

Under the circumstances that the management and control of the domestic epidemic situation is improving steadily, and the global scope is expected to recover to normal ahead of time, the business situation of all sectors of literature and tourism, which has been hit hard by the epidemic, has improved significantly.It is suggested that we should pay attention to the targets of post-epidemic demand recovery, such as hotels, scenic spots, gambling and other sectors with low valuation and high performance flexibility.

Credit Suisse: I believe that the gradual normalization of quarantine requirements will help to improve the gambling revenue moderately.

Credit Suisse previously reported that Macao's gambling revenue in February was slightly lower than expected, rising 136% year-on-year. Mainly driven by last year's low base, casinos were closed for 15 days in the same period last year. Even if the Lunar New year holidays are included, the average daily gambling income still increases by only 1 per cent a month to 261 million patacas. From January to February, gambling revenues were 30% in 2019, similar to 30-40% in October last year, reflecting a slow recovery.

The bank said March was a traditional off-season, but believed that the gradual normalization of quarantine requirements would help moderate betting gains.

Daiwa: reiterate its positive view on the industry and continue to be optimistic about enterprises with midfield and high-end midfield as the business center, as well as enterprises with less business in the Macao Peninsula.

Total gaming revenues in Macau fell 9 per cent year-on-year to 7.312 billion patacas in February, below market expectations of 5.2 per cent, Daiwa said. The bank believes that the surge in gaming revenue after the Lunar New year is only a short-term phenomenon and should be concerned about whether monthly gaming revenues will be significantly better than in the fourth quarter of last year without isolation between the mainland and Macau.

The bank reiterated its positive view on the industry。In terms of stock selection, we continue to be optimistic about enterprises with midfield and high-end midfield as the business center, as well as enterprises with less business in the Macao Peninsula.The first choice for the industry is Sands China, and it is believed that the group is the "dark horse" in the high-end midfield competition.

Tianfeng Securities: believes that Macau's gaming industry may recover faster than expected. Gross gaming revenue in Macao this year is expected to return to 50% of the level the year before last, and the midfield business is the key to profitability.

Tianfeng Securities previously reported that Macao announced on February 22nd that all mainland tourists did not need to be quarantined, and citizens began to be vaccinated against COVID-19.The bank believes that the dawn of Macau gaming plate is ahead and the future is coming.

Tianfeng Securities believes that the recovery of Macau's gaming industry may be faster than expected, mainly based on the following considerations:

From the cycle point of view, M1 as a leading indicator is closely related to gambling VIP business. The rebound in M1 growth reflects increased liquidity and is also conducive to gaming intermediaries doing business.

From the horizontal and vertical comparison, high-end consumer demand is expected to be further released. From the perspective of overseas gambling demand, it is expected that mainland China and global demand will be further released from Macao. From the perspective of consumption such as cosmetics and gold, the consumption stratification caused by the wealth effect is more obvious, and the growth rate is significantly higher than that of other retail categories.

From the perspective of competition, Macao is the best alternative destination for mainland tourists to travel abroad. It is expected that Macau's gaming industry will benefit from taking the lead in optimizing the competitive landscape brought about by immunization in 2021 and 2022, which will be reflected in both VIP and midfield business.

Tianfeng Securities believes that the midfield with higher profit margins is expected to drive Macau gaming companies to achieve profit growth.The bank forecasts that Macau's gaming industry will return to 50% in 2019 in 2021 and 83% in 2019 in 2022, while the midfield business with higher gross margins will be the most important driver of profit improvement.

The bank expects EBITDA to return to 72 per cent in 2019 and 127 per cent in 2019 after Macau gaming adjustment in 2021.

HSBC Securities: the increase in visa applications after the Lunar New year leads to the growth of Hao gambling income.

HSBC Securities issued a research reportVisa applications for Beijing and Guangzhou increased after the Lunar New year, while the performance of midfielders and VIPs also led to an increase in Macau's gross gaming revenue (GGR). However, the valuation of Hong Kong-listed Hao betting stocks was only reasonable and Melco Resorts and Entertainment Ltd was considered to be of higher investment value.

The first 21 days of February covered the Lunar New year holiday, with total gaming revenues of 5.8 billion patacas (patacas, the same below), the exchange said. It means that the average ADR has been 466 million yuan per day over the past six days, compared with 279 million yuan per day during Golden week in October last year and 188 million yuan per day the previous week. By market segment, VIP is up about 5 per cent on a month-on-month basis, while midfield is up 3-4 per cent.