May GGR beat expectations – According to the Gaming Inspection and Coordination Bureau (DICJ), GGR in May reached MOP22.6bn, up 6.7% YoY and 13.7% MoM, exceeding the market expectation of +5% YoY, driven by record‑breaking visitor traffic during the Labour Day Holiday. This implies daily GGR of MOP729mn, up 10% MoM. Accumulated GGR in the first five months of 2026 reached MOP108.4bn, up 10.9% YoY, representing 45.9% of the government’s full‑year forecast of MOP236bn, processing in a healthy pace.

Strong Golden Week traffic boosts performance – Macau welcomed approximately 873k total visitor arrivals during the five‑day Labour Day holiday (1‑5 May), up 2.7% YoY, with 2 May recording 248k arrivals, the highest single‑day total on record. Mainland China tourists accounted for 725k trips, up 6.9% YoY, representing 83% of total arrivals. Average hotel occupancy reached 92.7% over the holiday, peaking at 98.3% on 2 May. The strong visitation was further supported by several large‑scale entertainment events held in Macau during the month, including the IVE concert at Sands China and the EXO concert at Galaxy Entertainment, which were believed  to have brought in more non-gaming revenue.

Our view:

June GGR is expected to moderate due to the FIFA World Cup (11 June – 19 July), which may temporarily divert some premium customers. We expect June and July GGR to decline modestly on a YoY basis. A flattish trend is seen for June‑July, with LSD growth pace likely for the remainder of the year.

We continue to favour Galaxy Entertainment (27 HK, HK$32.12, HK$140.7bn) as our top pick driven by 8% YoY EBITDA growth in 1Q26 (mass recovery at 139% of 1Q19 levels) and a potential interim dividend hike. Sands China (1928 HK, HK$16.03, HK$129.7bn) and Wynn Macau (1128 HK, HK$5.95, HK$31.4bn) are favoured for their attractive dividend yields of 4%+ and 6%+, respectively. Galaxy Entertainment, Sands China and Wynn Macau are trading at 13x/14x/12x for FY26E P/E, respectively. (Amelia Deng)