Citi wrote in its research report that Macau's GGR showed steady growth in 1Q25. As the introduction of new hotel rooms is expected to drive up costs even though the industry's reinvestment seems to remain at a reasonable level, the broker predicted operating expenses to increase during the period, and the operating de-leverage of which may lead to a 6% YoY decline in the industry's 1Q25 EBITDA to US$1.916 billion.

Citi's top picks for Macau casino stocks were GALAXY ENT (00027.HK)  -1.200 (-4.286%)    Short selling $147.87M; Ratio 54.468%   and MGM CHINA (02282.HK)  -0.140 (-1.460%)    Short selling $2.25M; Ratio 22.217%   , while its global top pick was Las Vegas Sands (LVS.US)      .

Related NewsHSBC Research: Visitation Uptick Fails to Boost MO GGR; MGM CHINA/ GALAXY ENT Preferred
Citi initiated a downside 30-day catalyst watch on SANDS CHINA LTD (01928.HK)  -0.340 (-2.534%)    Short selling $51.55M; Ratio 32.134%   . However, it kept a Buy rating on the group, expecting it to become a strong competitor in the premium hotel market after the full opening of Londoner Grand.

The broker also upgraded Melco Resorts & Entertainment (MLCO.US)      and WYNN MACAU (01128.HK)  -0.070 (-1.397%)    Short selling $2.78M; Ratio 11.793%   from Neutral to Buy, and trimmed SJM HOLDINGS (00880.HK)  -0.040 (-1.852%)    Short selling $1.57M; Ratio 22.375%   's target price from $2.05 to $1.7 to reflect more conservative EBITDA margin forecasts.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-04-15 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)