Date: 23 September 2024
Broker: MIB Securities (Hong Kong) Ltd

Strong Influx of Visitors in September 2024

Macau welcomed over 492,100 visitors from China between 14-19 September 2024, which equates to an average of approximately 98,400 visitors per day. Notably, Macau received more than 125,000 visitors on Sunday, 15 September, surpassing the Macau Tourism Office’s guidance of 100,000 daily visitors for the upcoming October Golden Week (GW) holiday.

Golden Week as a Key Growth Opportunity

The National Day Golden Week, running from 1-7 October, is one of the peak travel periods for Chinese tourists. Macau’s hotels are tracking occupancy and average daily rate (ADR) figures similar to those of Golden Week 2023, with ADR levels showing strength. Galaxy Entertainment (27 HK) is well-positioned to capitalize on this holiday traffic, thanks to its strong portfolio of non-gaming offerings, which have broad appeal to tourists.

Record Monthly Gaming Revenue

In May 2024, Macau recorded its highest gross gaming revenue (GGR) since January 2020, reaching MOP 20.1 billion, driven by holiday traffic during Labour Day. There is potential for further GGR recovery during the October Golden Week period, with Galaxy Entertainment expected to be a major beneficiary of this trend.

Broker’s Recommendation

As of 23 September 2024, Galaxy Entertainment (27 HK) has a target price (TP) of HKD 45.31, with 90.9% of analysts recommending a “Buy.” MIB Securities (Hong Kong) Ltd, however, does not currently rate the company.