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On July 7, Gelonghui reported that Hong Kong stocks related to gambling remained active, with MELCO INT'L DEV and SJM HOLDINGS rising over 2%, and PARADISE ENT and Sands China rising over 1%, especially MGM CHINA achieving five consecutive days of gains, setting a new high for the phase. In recent news, a latest research report by UBS Group indicated that the forecast for total gambling revenue (GGR) in Macau for 2025 to 2026 has been revised upward by 8 to 14% to reflect unexpectedly strong growth in the second quarter. Notably, the tariffs between China and the U.S. did not affect gambling demand, and visitor numbers in the second quarter also accelerated due to concerts. The demand for the second half of the year will continue to be supported by new hotels and new visa policies involving Zhuhai and Hengqin.
UBS Group has raised the Macau gaming revenue forecasts for this year and next year and increased the target prices for Macau Casino stocks, with the preferred choices being Galaxy Entertainment (00027.HK) and MGM CHINA (02282.HK).
The UBS Group research report indicates an upward revision of the forecast for Macau's total gaming revenue (GGR) for 2025 to 2026 by 8 to 14% to reflect unexpected growth in the next quarter. In this regard, US-China tariffs have not impacted gaming demand, and the number of visitors has also accelerated due to concerts, along with new hotels and new visa policies involving Zhuhai and Hengqin, which will continue to support demand growth in the second half of the year. The bank expects GGR to grow by 7% year-on-year in the second half, compared to 4% in the first half, resulting in an annual GGR increase of 6%. For 2026, an increase of 3% is expected due to the decline in demand from Satellite venues.