00200 Overview

Hong Kong Stock Market Performance: The Hong Kong stock market opened higher but closed lower, with the HSI down 384 points (1.4%) at 26,381, and total market turnover at HKD259.277 billion.

CKI Holdings' Stock Surge: A consortium led by CKI Holdings sold UKPN, resulting in a 4.5% increase in its stock price, while CKH Holdings and Power Assets also saw significant gains.

Tech Sector Declines: Alibaba's stock fell 3.6% after a report predicted weak quarterly profits, while other tech stocks like Tencent and Meituan also experienced declines.

Pharmaceuticals and Consumer Stocks Drop: Various pharmaceutical and consumer stocks saw significant losses, with declines ranging from 3.3% to 9.2% across multiple companies.

Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first 22 days of February reached MOP14.3 billion, with a daily average of MOP650 million, falling short of JPMorgan's expectations during the Lunar New Year period.

Forecast Adjustments: Due to mixed performance, JPMorgan revised its February GGR forecast to a flat to 2% increase year-on-year, down from a previous estimate of 2-5% growth, while maintaining a 12-13% growth expectation for the first two months of 2026.

Casino Stock Preferences: JPMorgan updated its preference order for Macau casino stocks, ranking Galaxy Entertainment as the top pick, followed by MGM China and Sands China, all rated Overweight, while Melco Resorts and SJM Holdings were rated Underweight.

Market Reactions: The report noted a decline in casino stocks, with Sands China slipping 2.5% after Citi cut its GGR forecast, reflecting broader market concerns about the gaming sector's performance.

Macau GGR Performance: UBS reported that Macau's average daily Gross Gaming Revenue (GGR) during the Lunar New Year holiday was approximately MOP786 million, falling short of market expectations of MOP900-950 million, although it accelerated towards the end of the holiday.

Year-on-Year Comparison: The GGR run-rate increased to MOP1.2-1.3 billion per day in the last three days of the holiday, marking a 10-15% year-on-year increase, but the average daily GGR for the month to date remains down about 8% year-on-year and 11% month-on-month.

UBS Stock Recommendations: UBS identified Melco Resorts, WYNN Macau, and MGM China as top picks in the Macau gaming sector, with all receiving a "Buy" rating and specific target prices set for each stock.

Investment Ratings Overview: The report includes investment ratings and target prices for various Macau gaming stocks, with Melco Resorts at US$9.5, WYNN Macau at HK$8.9, MGM China at HK$18.5, and Galaxy Entertainment at HK$46.9, among others.

Stock Performance: Galaxy Entertainment (00027.HK) saw a decrease of 0.975%, while Sands China Ltd (01928.HK) dropped by 2.474%. Other companies like MGM China and Wynn Macau also experienced declines in their stock prices.

Short Selling Data: Galaxy Entertainment had a short selling amount of $24.63M with a ratio of 19.415%, while Sands China Ltd had $35.30M in short selling with a ratio of 20.788%.

Analyst Ratings: Most companies listed, including Galaxy Entertainment, Sands China, and MGM China, received an "Overweight" rating, indicating a positive outlook from analysts.

Market Predictions: JPMorgan predicts a maximum 5% increase in Macau's February GGR, naming Galaxy Entertainment as a top pick, while UBS expects Sands China’s share price to react positively to its dividend announcement.

Macau's GGR Performance: Macau's gross gaming revenue (GGR) for the first half of February reached MOP8.8 billion, with a daily run-rate decline to MOP543 million, compared to MOP625 million in the first week of February and MOP730 million in January.

Future GGR Projections: JP Morgan forecasts that GGR will fluctuate in the coming weeks, with expected daily run-rates of MOP850 million-MOP1 billion during the Lunar New Year period and MOP750 million-MOP800 million in the following week.

February GGR Growth Expectations: The broker anticipates a 2-5% year-over-year growth for February's GGR, estimating it to be between MOP20.1 billion and MOP20.7 billion, with a daily run-rate of MOP720 million-MOP740 million.

Investment Recommendations: JP Morgan recommends focusing on individual stocks, naming GALAXY ENT as the top pick with an Overweight rating, followed by MGM CHINA, SANDS CHINA LTD, WYNN MACAU, Melco Resorts & Entertainment, MELCO INT'L DEV, and SJM HOLDINGS.

Melco's Decision on City of Dreams Manila: Melco has decided to abandon the sale of the City of Dreams Manila project, as no buyer was found that met the property's value expectations.

Lawrence Ho's Remarks: Lawrence Ho, Chairman and CEO of Melco, stated that while the sale process has concluded, he remains optimistic about the business's recovery and indicated that the situation may be reevaluated in the future.