The East Asia Securities Research Department has released a report stating that the current valuation of Macau gaming stocks is attractive. They have given the Macau gaming industry a "buy" rating, advising investors to prioritize gaming stocks with growth potential in market share and relative valuation discounts compared to their peers. With the mainland economy gradually stabilizing, robust outbound travel demand, and normalizing cross-border traffic, it is expected that Macau gaming revenue will increase to MOP 234 billion this year, a nearly 28% increase compared to last year, returning to about 80% of the level in 2019. The report predicts that Macau inbound tourist numbers will recover to 72% of 2019 levels by 2023, and further improve to 86% of 2019 levels this year. It also forecasts a 6% year-on-year increase in gaming gross revenue contributed by each tourist this year, similar to the 6.3% year-on-year nominal growth in disposable income of mainland residents in the first three quarters of last year. The report points out that as gaming gross revenue continues to rise, the short-term profitability of Macau gaming stocks is expected to continue to recover. Furthermore, with the possibility of the US reducing interest rates this year, reducing refinancing costs will help expand the net profit margin of Macau gaming stocks, and some gaming companies may even have the opportunity to resume symbolic dividends this year. The report mentions that in the first three quarters of 2023, gaming gross revenue from the mass market accounted for 75% of the total gaming gross revenue, compared to only about 54% in the same period in 2019. Due to the higher profit margin of mass market gaming gross revenue, the EBITDA recovery of Macau gaming stocks will outpace gaming gross revenue, and it is estimated that industry EBITDA in 2024 will recover to 95% of the level in 2019.