In "The Big Banks," Citigroup: China's industrial profit growth should continue to drive Macau's gaming revenue, with a preference for Galaxy Entertainment Group and MGM CHINA

AASTOCKS
2025.10.21 02:53

The report from CLSA indicates that the biggest takeaway from the recent roadshow in Tokyo is that many investors agree with the bank's view that the growth of industrial profits in China should continue to drive Macau's gaming revenue. Meanwhile, stock investors still prefer high-quality companies. With the recent stock price correction, the sector is currently trading at 9.4 times the 2026 enterprise value multiple (EV/EBITDA), compared to the 11 to 12 times level set by the bank for Macau's "new normal."

CLSA maintains its existing forecasts and ratings. Galaxy Entertainment (00027.HK) and MGM China (02282.HK) are the bank's preferred targets

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