Four Macau gaming operators likely to pay dividends in 2024 – HSBC
HSBC Global Research predicts that MGM China, Wynn Macau, Galaxy, and Sands China will pay dividends in 2024, while Melco and SJM are likely to withhold dividends.
In a recent report on HSBC Global Investment Summit 2024 key takeaways, the financial services agency said that Macau’s gaming demand remains healthy, while gaming operators “remain committed to shareholder returns”.
Analysts Charlene Liu, Jessie Lu, and Lauren Cai maintain a ‘buy’ rating for MGM China and Galaxy, noting that both operators observed positive trends across all business segments, with notable upticks in VIP segment.
“With growing offerings of non-gaming events of a different nature, both[operators] expect to see travellers return more often to Macau and the seasonality trend to smoothen out,” the analysts said.
HSBC cited insights from senior management at MGM and Wynn regarding the Macau market, indicating that margins for the high-end mass segment could see more pressure from the intensified market competitions, but could ‘be buffered by operating leverage as top lines continues to grow’.
Earlier in March, MGM China announced a final dividend of HKD0.243 per share and a special dividend of HKD0.104 per share for 2023. Similarly, Wynn Macau declared a final dividend of HKD0.075 per share for the same fiscal year.
Commenting on these actions, brokerage firm J.P. Morgan noted that three out of six gaming operators in Macau are now paying dividends, and they anticipate Sands China to follow suit next year. However, Melco and SJM are projected to prioritise deleveraging efforts for some time.