Macao has demonstrated a robust recovery from COVID-19 disruptions. As of the fourth quarter of 2024, the industry's gross gaming revenue reached 79.6% of 2019 levels, despite a decline in junket VIP income due to regulatory changes. We believe that Sands China's emphasis on the mass market, along with its largest room inventory in Macao and a proven track record in non-gaming activities, positions the company as a key beneficiary poised to capture further demand recovery in the region. With the adverse effects of renovation disruptions expected to conclude in the first half of 2025, we anticipate a reacceleration in sales growth and margin expansion starting in 2025.
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