銀河娛樂集團有限公 司 2024 年報 2024 願景 銀娛的願景是： 成為亞洲首屈一指的博彩及娛樂企業。通過實踐我們的經營理念，我們將可以 達成我們所訂下的願景。 銀娛的經營理念 洞悉本地市場 深明中華文化，對亞洲及中國旅客喜好有透徹了解，為 銀娛一大競爭優勢 專業經驗 透過審慎的資本開支計劃、憑著在建築及酒店業的專業 經驗及嚴密監控的發展計劃，致力為股東帶來投資回報 定位清晰 將銀娛定位為領先的綜合博彩及休閒娛樂設施營運商 需求主導策略 密切注意市場發展並迅速作出謹慎的應變 目錄 2005年7月 銀娛成為首間在香港交易所上市的博彩 營運商。 2006年10月 | 03 | 公司資料 | 64 | 五年賬目摘要 | | --- | --- | --- | --- | | 04 | 公司簡介 | 65 | 獨立核數師報告 | | 06 | 財務及營運摘要 | 70 | 綜合損益表 | | 10 | 主席報告 | 71 | 綜合全面收益表 | | 13 | 二零二五年股東週年大會及末期股息財務日誌 | 72 | 綜合資產負債表 | | 14 | 選定主要獎項 | 74 | 綜合現金流量表 | | 20 | 管理 ...

Investment Rating - The investment rating for Galaxy Entertainment is "Buy" (maintained) [1] Core Views - The company's performance exceeded expectations, and there is optimism for continued growth in 2025, particularly in EBITDA profit margins [5] - The recovery in gaming revenue is attributed to non-gaming activities such as concerts, which have attracted high-net-worth clients [5] - The company is exploring upgrades for its hotel offerings to enhance revenue generation [5] Financial Projections - Total revenue is projected to grow from HKD 35,684 million in 2023 to HKD 53,525.8 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 6.3% [1][6] - Adjusted property EBITDA is expected to increase from HKD 9,955 million in 2023 to HKD 16,663.4 million in 2026, with a significant year-on-year growth of 34.5% in 2024 [1][6] - The earnings per share (EPS) is forecasted to rise from HKD 1.56 in 2023 to HKD 3.24 in 2026 [1][6] Market Position - The company achieved a total gaming revenue of HKD 110.3 billion in Q4 2024, recovering to 76.3% of the levels seen in Q4 2019 [5] - The market share for the company's mass gaming segment increased to 22.5%, while the overall gaming market share rose to 19.8% [5] - The company is expected to maintain stable operating costs, which will support profit margin recovery to pre-pandemic levels [5]

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment [1] Core Views - The company's performance exceeded expectations, and there is optimism for continued EBITDA margin improvement in 2025 [5] - The recovery in gaming revenue is attributed to non-gaming activities, such as concerts, which have attracted high-net-worth clients [5] - The company is exploring upgrades for its hotel offerings to enhance revenue generation [5] Financial Projections - Total revenue is projected to grow from HKD 35,684 million in 2023 to HKD 53,525.8 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 6.3% [1][6] - Adjusted property EBITDA is expected to increase from HKD 9,955 million in 2023 to HKD 16,663.4 million in 2026, with a significant growth rate of 20.6% in 2025 [1][6] - The earnings per share (EPS) is forecasted to rise from HKD 1.56 in 2023 to HKD 3.24 in 2026 [1][6] Market Position - The company achieved a total gaming revenue of HKD 110.3 billion in Q4 2024, recovering to 76.3% of the Q4 2019 level [5] - The market share for the company's mass gaming segment increased to 22.5%, while total gaming revenue market share rose to 19.8% [5] - The company is expected to maintain stable operating costs, contributing to improved profit margins [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 47.25, representing a potential upside of 48.11% from the current stock price of HKD 31.90 [1]. Core Insights - The company's Q4 2024 performance met expectations, with a year-to-date low double-digit growth forecast. The net revenue for Q4 was HKD 11.29 billion, recovering to 87.1% of the 2019 level, with a year-on-year increase of 9.4% and a quarter-on-quarter increase of 5.9% [2][3]. - The introduction of smart gaming tables and the launch of new products, particularly the Capella Hotel and Resort, are expected to enhance market share. The company has a strong balance sheet with net cash of HKD 27.1 billion, the strongest in the industry [2][3]. Financial Summary - Total net revenue is projected to grow from HKD 35.68 billion in 2023 to HKD 55.18 billion by 2027, reflecting a compound annual growth rate (CAGR) of 10.3% [2][3]. - EBITDA is expected to increase from HKD 9.96 billion in 2023 to HKD 16.89 billion in 2027, with an EBITDA margin improving from 27.9% to 30.6% over the same period [2][3]. - Net profit is forecasted to rise from HKD 6.83 billion in 2023 to HKD 12.62 billion in 2027, with a net profit margin increasing from 19.1% to 22.9% [2][3]. Operational Highlights - The company reported a strong performance in its flagship properties, with net revenues for Galaxy Macau and StarWorld Hotel increasing by 12% and 3% year-on-year, respectively [2]. - The occupancy rates for Galaxy Macau and StarWorld Hotel were reported at 98% and 100%, respectively, indicating robust demand [2]. - The company is advancing its development projects, including the introduction of the Capella Hotel and Resort in mid-2025 and the ongoing construction of the fourth phase of Galaxy Macau, expected to be completed by 2027 [2][3].

Financial Performance - Adjusted EBITDA for the year reached HKD 12.2 billion, an increase of 22% year-on-year[2] - Net profit attributable to shareholders for the year was HKD 8.8 billion, up 28% year-on-year[2] - The group's total net income for the year was HKD 43.4 billion, an increase of 22% year-on-year[12] - In Q4, the group's net income was HKD 11.3 billion, up 9% year-on-year and 6% quarter-on-quarter[12] - Q4 adjusted EBITDA was HKD 3.2 billion, a 15% increase year-on-year and a 10% increase quarter-on-quarter[12] - The company reported a net profit of HKD 8,814,404 thousand for the year ended December 31, 2024, compared to HKD 6,873,976 thousand in 2023, which is an increase of 28.2%[29][31] - The company reported a pre-tax profit of HKD 8,759,247 for 2024, up from HKD 6,827,956 in 2023, indicating a growth of 28.4%[38] - The group's net revenue for 2024 was HKD 43.43 billion, a year-on-year increase of 22%[46] - Adjusted EBITDA for 2024 was HKD 12.19 billion, reflecting a 22% year-on-year growth[47] Visitor Statistics - The number of international visitors to Macau increased by 66% year-on-year to 2.4 million[3] - The number of visitors to Macau in 2024 was 34.9 million, a 24% increase year-on-year, recovering to 89% of 2019 levels[44] - The total number of international visitors to Macau increased by 66% from 1.5 million in 2023 to 2.4 million in 2024[44] Cash and Investments - Total cash and liquid investments amounted to HKD 31.3 billion, with a net amount of HKD 27.1 billion after deducting liabilities of HKD 4.2 billion[3] - Cash and liquid investments as of December 31, 2024, amounted to HKD 31.3 billion, with a net amount of HKD 27.1 billion after deducting liabilities[12] - Cash and cash equivalents rose significantly to HKD 20.39 billion in 2024, up from HKD 14.51 billion in 2023, marking an increase of 40.4%[16] - The company maintains a net cash position as of December 31, 2024, with no leverage ratio reported[81] Dividends - The board proposed a final dividend of HKD 0.50 per share, reflecting confidence in the long-term prospects of Macau and the group[3] - The board proposed a final dividend of HKD 0.50 per share, expected to be distributed around June 2025[12] - The company declared a special dividend of HKD 0.30 per share, totaling HKD 1,311,091, compared to HKD 0.20 per share in 2023[36] - The company declared a final dividend of HKD 0.50 per share, totaling approximately HKD 21.90 billion, to be paid in June 2025[43] - The total dividend for the year ending December 31, 2024, will be HKD 1.00 per share, combining the interim and proposed final dividends[89] Assets and Liabilities - Total assets increased to HKD 94.58 billion in 2024 from HKD 87.22 billion in 2023, representing a growth of 8.5%[16] - Total liabilities as of December 31, 2024, were HKD 18,186,407, an increase from HKD 15,998,364 in 2023[33] - The company’s total liabilities increased to HKD 18.19 billion in 2024 from HKD 15.99 billion in 2023, reflecting a rise of 13.7%[16] - Total equity increased to HKD 76.39 billion in 2024 from HKD 71.22 billion in 2023, an increase of 7.7%[16] Gaming Operations - Total revenue for the gaming operations business reached HKD 41,145,377 thousand in 2024, up from HKD 31,722,235 thousand in 2023, representing a growth of 29.5%[25] - Net revenue from gaming operations after commissions and incentives was HKD 33,826,345 thousand in 2024, compared to HKD 27,289,868 thousand in 2023, an increase of 24.1%[25] - The total gaming revenue for 2024 reached HKD 41.15 billion, up 30% compared to the previous year[46] - Adjusted EBITDA for the gaming and entertainment segment was HKD 11,462,329 thousand for the year ended December 31, 2024, compared to HKD 9,417,222 thousand in 2023, reflecting a growth of 22%[29] Non-Gaming Initiatives - The company is focusing on developing non-gaming businesses in the fourth phase of its Cotai project, targeting entertainment and family-friendly facilities[12] - The company plans to invest over HKD 33 billion in non-gaming initiatives to enrich Macau's tourism offerings under the new gaming license[72] - The ongoing Phase 4 project will introduce several high-end hotel brands to Macau, a theater with up to 5,000 seats, diverse dining, retail, non-gaming facilities, and is targeted for completion in 2027[74] Operational Developments - The introduction of electronic gaming tables across all venues is expected to enhance operational efficiency and customer management[6] - The company is progressing with the internal renovations and Phase 4 development of Galaxy Macau, focusing on non-gaming facilities[6] - The Galaxy International Convention Center and Galaxy Theatre are undergoing upgrades, with a focus on high-end hotel brands and diverse non-gaming facilities[70] - The company is expanding its presence in Macau with the renovation of its tenth hotel, Galaxy Macau, expected to open in mid-2025, featuring approximately 100 luxury villas and suites[74] Market Position - Galaxy Macau has been recognized as the resort with the most Forbes Five-Star rated hotels for three consecutive years[6] - The company is focusing on enhancing its resorts with new dining and retail options to maintain competitiveness[67]

Group 1 - Morgan Stanley believes that while gaming stocks are undervalued, there is a lack of upward momentum in the short term, suggesting investors focus on individual stocks [1] - Galaxy Entertainment is highlighted as the top pick for gaming stocks in 2025 due to its EV/EBITDA valuation of approximately 9 times, with the opening of the Galaxy Macau and the fourth phase of the Silver River scheduled for 2025 and 2027 respectively [1] - Morgan Stanley has assigned a "Buy" rating to Galaxy Entertainment with a target price of 48 HKD [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 48.96, equivalent to 14 times the expected EV/EBITDA for 2025 [1]. Core Views - The company's Q3 2024 performance met expectations, with a net revenue increase of 10.5% year-on-year, although it decreased by 2.3% quarter-on-quarter [1]. - The introduction of smart gaming tables and the launch of new products are expected to help the company regain market share, which is estimated to exceed 20% [1][2]. - The company has a strong balance sheet and management execution capabilities, contributing to confidence in its long-term development [1]. Financial Summary - Total net revenue for 2022 was HKD 11,474 million, with a significant increase to HKD 35,683.6 million in 2023, and projected revenues of HKD 43,358.2 million for 2024 [2]. - EBITDA for 2023 was HKD 9,955 million, with forecasts of HKD 12,278.2 million for 2024 and HKD 14,220.4 million for 2025, indicating a growth trend [2]. - Net profit for 2023 was HKD 6,828 million, with projections of HKD 9,166.4 million for 2024 and HKD 10,301.6 million for 2025, reflecting a positive outlook [2]. Operational Highlights - The company's EBITDA margin is expected to improve, with rates projected at 28.3% for 2024 and 29.9% for 2025 [2]. - The occupancy rates for the "Galaxy Macau™" and StarWorld Hotel were reported at 98% and 100%, respectively, indicating strong demand [1]. - The company plans to continue expanding its offerings, including the development of new hotel brands and entertainment facilities [1].

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment [1] Core Views - The company's performance in Q3 2024 met expectations, with a net revenue of HKD 10.67 billion, recovering to 83.9% of Q3 2019 levels. The adjusted property EBITDA was HKD 3.1 billion, also recovering to 71.5% of the same period in 2019 [1][2] - The management is optimistic about the future market share growth, supported by strong performance during the Golden Week and the upcoming openings of new luxury properties [3] Financial Forecasts and Valuation - Total revenue projections for 2024, 2025, and 2026 are HKD 45.62 billion, HKD 50.31 billion, and HKD 53.49 billion, respectively, with year-on-year growth rates of 27.8%, 10.3%, and 6.3% [1][3] - Adjusted property EBITDA forecasts for the same years are HKD 12.75 billion, HKD 15.38 billion, and HKD 16.66 billion, with corresponding growth rates of 34.5%, 20.6%, and 8.3% [1][3] - The current stock price corresponds to EV/EBITDA multiples of 11.5, 9.5, and 8.8 for 2024, 2025, and 2026, respectively [3]

Core Viewpoint - Citigroup's research report indicates that Galaxy Entertainment's revenue in the third quarter increased by 11% year-on-year, reaching HKD 10.67 billion, with adjusted EBITDA growing by 6% to HKD 2.94 billion, exceeding expectations [1] Group 1: Financial Performance - Galaxy Entertainment's revenue for Q3 reached HKD 10.67 billion, reflecting an 11% year-on-year growth [1] - Adjusted EBITDA for the same period was HKD 2.94 billion, marking a 6% increase compared to the previous year [1] Group 2: Strategic Developments - The company management plans a significant upgrade to the Galaxy StarWorld Hotel, enhancing the main casino lobby and dining options [1] - Renovation progress at Galaxy Capella is on track, with the fourth phase development expected to include new luxury hotels, theaters, dining, and retail facilities, projected for completion in 2027 with a development area of approximately 600,000 square meters [1] Group 3: Events and Customer Engagement - Management noted that Andy Lau's concert at the Galaxy Arena attracted additional customers [1] - The upcoming UFC event in Q4 2024 is also anticipated to draw significant interest [1]

Business Overview - Galaxy Entertainment Group aims to be recognized as Asia's leading gaming and entertainment corporation[2]. - The company operates three flagship projects in Macau, including the Galaxy Macau, which spans 1.4 million square meters and features approximately 4,750 hotel rooms[10][11]. - The third phase of Galaxy Macau, including the Galaxy International Convention Center and additional hotels, opened in 2023, further expanding the project[11]. - Galaxy's business philosophy emphasizes local market insights and a focus on return on investment (ROI) with a prudent capital expenditure (CAPEX) plan[3][5]. - The company monitors market developments closely and adopts a demand-driven strategy for prudent expansion[4][5]. - Galaxy Entertainment is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng Index[10]. - The company has established a diverse range of retail, dining, entertainment, and leisure options, including over 200 international luxury brands in its retail space[11]. - Galaxy's commitment to shareholder returns is supported by its proven expertise in construction and hotel management[3][5]. - The company continues to leverage its deep understanding of Asian and Chinese customer preferences as a competitive advantage[3][5]. - Galaxy Entertainment Group's vision is to achieve its goals through adherence to its proven business philosophy[2]. Financial Performance - Net revenue for the first half of 2024 reached HKD 21.47 billion, a year-on-year increase of 37%[17]. - Adjusted EBITDA for the same period was HKD 6.01 billion, reflecting a 37% year-on-year growth[20]. - The group reported a net profit attributable to shareholders of HKD 4.4 billion, up 52% year-on-year[17]. - Non-gaming revenue increased to HKD 3.09 billion, a 34% rise compared to the previous year[20]. - The average hotel occupancy rate for the first half of 2024 was 97% across seven hotels[17]. - The group announced a special dividend of HKD 0.30 per share and a mid-term dividend of HKD 0.50 per share[17]. - The total net gaming revenue for the first half of 2024 was HKD 16.99 billion, compared to HKD 11.4 billion in the same period of 2023, reflecting a growth of 48%[24]. - The adjusted EBITDA margin for the first half of 2024 was 32%, slightly down from 34% in the first half of 2023[23]. - The group achieved nearly 100% occupancy rates in its hotels during the second quarter of 2024[28]. - The group reported a net profit attributable to shareholders of HKD 4.4 billion, representing a 52% increase year-on-year[37]. - The total non-gaming revenue for the first half of 2024 was HKD 3.1 billion, contributing to the overall growth[41]. - The adjusted EBITDA for Galaxy Macau was HKD 5.4 billion, a 34% increase year-on-year[37]. - The net profit for the same period was HKD 4,407,244, representing a 52.0% increase from HKD 2,897,450 in 2023[64]. - The company reported a basic and diluted earnings per share of HKD 100.3, compared to HKD 66.2 for the same period last year[64]. Expansion Plans - The group plans to expand its footprint with the development of Phase IV, adding 600,000 square meters and increasing total hotel supply to approximately 7,500 rooms[15]. - The group continues to explore development opportunities in the Greater Bay Area and overseas markets[16]. - The group plans to fully install electronic gaming tables by the end of 2024, having already begun pilot testing in July 2024[29]. - Galaxy Entertainment Group plans to open the Galaxy Macau Capella by mid-2025, featuring approximately 100 luxury sky villas and suites[52]. - The fourth phase development, covering about 600,000 square meters, aims to introduce several high-end hotel brands and is expected to be completed by 2027[52]. - The company plans to invest over HKD 33 billion in non-gaming initiatives to support the diversification of Macau's tourism products[54]. Market and Visitor Trends - The number of visitors to Macau in the first half of 2024 was 16.7 million, a 44% increase compared to the previous year[36]. - The group is actively promoting Macau as a travel destination through overseas offices in Tokyo, Seoul, and Bangkok[54]. Shareholder Information - The group announced an interim dividend of HKD 0.50 per share, reflecting confidence in the long-term prospects of Macau and the company[28]. - The total equity attributable to equity holders as of June 30, 2024, was HKD 68,571,693, an increase from HKD 64,465,365 at the beginning of the period[69]. - The company declared a special dividend of HKD 0.30 per ordinary share, totaling HKD 1,311,091,000, compared to no dividend in the previous year[90]. - The total number of shares held by major shareholders includes 1,770,199,554 shares (40.47%) by Dr. Lui Che Woo and 1,814,384,709 shares (41.49%) by Mr. Lui Yiu Tung[115]. Financial Position and Assets - The group's total assets increased from HKD 83.6 billion in the first half of 2023 to HKD 91.6 billion in the first half of 2024[22]. - The group's cash and liquid investments totaled HKD 29 billion, with a net amount of HKD 25.2 billion after deducting liabilities[17]. - The group maintained a healthy balance sheet with cash and liquid investments of HKD 29.0 billion as of June 30, 2024[40]. - The total assets as of June 30, 2024, amounted to HKD 91,594,458 thousand, slightly down from HKD 87,215,455 thousand at the end of 2023[84]. - The company reported a total cash and bank balance of HKD 17.361 billion as of June 30, 2024, compared to HKD 14.500 billion at the end of 2023[57]. Operational Efficiency - Employee costs (excluding directors' remuneration) amounted to HKD 3,892,425, up from HKD 3,480,227 in the previous year[60]. - The company incurred finance costs of HKD 58,837, a decrease from HKD 122,915 in the previous year[64]. - The company’s financial expenses for the first half of 2024 totaled HKD 58,837 thousand, compared to HKD 71,798 thousand in the same period of 2023, indicating a decrease of approximately 18.0%[82]. Risk Management - The group faces various financial risks, including market risk (foreign exchange risk, interest rate risk, and other price risks), credit risk, and liquidity risk, with no changes in risk management objectives and policies since December 31, 2023[75]. - The company’s credit risk related to financial assets is considered low, with expected credit losses not being significant[94]. Corporate Governance - The group's interim results for the six months ended June 30, 2024, have been reviewed by the audit committee and the independent auditor, PwC, according to Hong Kong's review standards[133]. - The company has adopted the standard code of conduct for securities trading as per Appendix C3 of the listing rules, confirming compliance by all directors for the six months ended June 30, 2024[134]. - The company has complied with the corporate governance code in Appendix C1 of the listing rules, except for provision B.2.2, during the six months ended June 30, 2024[135].