Group 1 - The core viewpoint of the article is that Macau's gaming companies attribute the strong performance of gross gaming revenue (GGR) in recent months to several factors, including major events, wealth effects driven by the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, which have led more mainland travelers to choose Hong Kong and Macau as destinations [1] - For the upcoming Golden Week, gaming companies expect strong demand based on nearly full hotel bookings and communication with clients, while the National Games are not anticipated to have a significant impact on gaming revenue [1] - Overall, the industry expects strong growth momentum to continue for the remainder of the year, with Goldman Sachs projecting a 9% year-on-year increase in Macau's total gaming revenue for 2025, implying a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] Group 2 - Sands China (01928) is favored by Goldman Sachs as the stock price has not fully reflected its ability to regain market share and potential for dividend growth, despite recent adjustments in promotional activities and reinvestment rates that may pressure profit margins in Q3, with a target price of HKD 24.8 and a "Buy" rating [1] - Galaxy Entertainment (00027) is also viewed positively, with expectations of increased market share driven by the new hotel Capella and major events, receiving a target price of HKD 55.9 and a "Buy" rating [1] - MGM China (02282) is considered to have the most attractive valuation, with expectations to maintain a 15% to 16% market share and a dividend yield of 5.1%, also expected to absorb some gaming volume from the upcoming closure of satellite casinos, with a target price of HKD 20.4 and a "Buy" rating [1]

Core Viewpoint - Goldman Sachs reports that Macau gaming companies attribute the strong performance of gross gaming revenue (GGR) in recent months to a combination of major events, wealth effects driven by the stock market, relaxed visa policies, and ongoing security concerns in Thailand and the Philippines, leading more mainland travelers to choose Hong Kong and Macau as destinations [1] Industry Summary - The gaming industry anticipates strong growth momentum to continue for the remainder of the year, with expectations of a 9% year-on-year increase in Macau's total gaming revenue for 2025, translating to a 14% year-on-year growth from September to December this year, and a 7% growth in 2026 [1] Company Summary - Sands China (01928) is favored by Goldman Sachs due to its stock price not fully reflecting its ability to regain market share and potential for dividend growth, despite potential short-term profit margin pressure from recent promotional adjustments and reinvestment rates; target price set at HKD 24.8 with a "Buy" rating [1] - Galaxy Entertainment (00027) is also viewed positively, with expectations of market share growth driven by the new hotel Capella and major events; target price set at HKD 55.9 with a "Buy" rating [1] - MGM China (02282) is considered the most attractively valued, expected to maintain a 15% to 16% market share with a dividend yield of 5.1%, and likely to absorb some gaming volume from the upcoming closure of satellite casinos; target price set at HKD 20.4 with a "Buy" rating [1]

Investment Rating - The report indicates a positive outlook for the Macau gaming industry, expecting GGR growth momentum to continue into the second half of 2025, with overall performance anticipated to exceed that of the first half of 2025 [2][9]. Core Insights - The Macau gaming market has shown better-than-expected performance from June to August, achieving double-digit GGR growth driven by factors such as RMB appreciation, stock market recovery, and strong tourism demand [2][9]. - The premium mass segment is leading GGR growth, surpassing pre-pandemic levels, while the mass market has yet to recover fully [2][9]. - Companies are actively positioning themselves in the premium mass segment, enhancing their offerings with luxury accommodations and services, leading to intense competition [2][9]. Company Summaries SJM Holdings - The company saw an increase in market share in September, particularly on the Macau Peninsula, attributed to a rise in day-trip visitors [10]. - The mass market business performed exceptionally well, with high profit margins expected to boost EBITDA margins [10]. - Confidence in performance for Q3 2025 is high, with expectations to surpass Q2 and Q1 2025 levels [10]. Sands China - The company is focusing on building competitiveness in the premium mass segment, adding numerous rooms and facilities [11]. - It is the last among six gaming enterprises to target the premium mass segment, aiming to regain lost advantages over the past two years [11]. - Capital expenditures will be directed towards a new convention center and garden, with no short-term increase in room numbers [11]. MGM China - Growth trends are expected to continue into the second half of 2025, with positive hotel booking data for September and October [12]. - The company is actively gaining market share in the premium mass segment, which is anticipated to enhance EBITDA profit margins [12]. - New high-end villas and the upcoming Alpha Club targeting ultra-high-end clientele are expected to boost revenue and profit margins [12]. Galaxy Entertainment - The company performed well in August, benefiting from a concert, with stable sales data from shopping centers [13]. - It expects steady improvement in EBITDA profit margins and remains optimistic about next year's performance growth [13]. - The company is advancing a project to add 1,500 guest rooms, expected to be completed by 2027, enhancing its competitiveness in the premium mass segment [13]. Industry Events - Numerous entertainment and sports events in the second half of 2025 are expected to significantly contribute to tourism and GGR growth in Macau [14]. - Upcoming events include concerts by popular artists and the NBA China Games, which are anticipated to attract significant visitor numbers [14][16].

(Stock Code: 27) （股份代號：27） NOTIFICATION LETTER 通 知 函 件 Dear Non-registered holder(Note), Galaxy Entertainment Group Limited (the "Company") – Notice of Publication of 2025 Interim Report ("Current Corporate Communication") (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） 各位非登記持有人附註： 銀河娛樂集團有限公司（「本公司」） – 2025 中期報告（「本次公司通訊」）之發佈通知 本公司的本次公司通訊的英文及中文版本已上載於本公司網站www.galaxyentertainment.com及香港交易及 結算所有限公司（「香港交易所」）網站www.hkexnews.hk。 閣下可在本公司網站主頁「投資者關係」一 欄內或在香港交易所網站開啟並瀏覽本次公司通訊。 閣下須使用Adobe® Reader®開啟有關文件。 ...

(Stock Code: 27) （股份代號：27） (Incorporated in Hong Kong with limited liability) （於香港註冊成立之有限公司） 本公司的本次公司通訊的英文及中文版本已上載於本公司網站www.galaxyentertainment.com及香港交易及 結算所有限公司（「香港交易所」）網站www.hkexnews.hk。 閣下可在本公司網站主頁「投資者關係」一 欄內或在香港交易所網站開啟並瀏覽本次公司通訊。 閣下須使用Adobe® Reader®開啟有關文件。 NOTIFICATION LETTER 通 知 函 件 Dear Shareholder, Galaxy Entertainment Group Limited (the "Company") – Notice of Publication of 2025 Interim Report ("Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Comm ...

Company Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) Galaxy Entertainment Group's Board of Directors comprises a Chairman, Executive Directors, Non-Executive Directors, and Independent Non-Executive Directors, with committees ensuring sound corporate governance - Board members include Chairman Mr. Lui Che Woo, Executive Directors Mr. Francis Lui Yiu Tung, Ms. Jenny Tsang, Ms. Joanna Lui, and several Non-Executive and Independent Non-Executive Directors[9](index=9&type=chunk) - Established Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, with Independent Non-Executive Directors serving as chairmen or key members in each committee[9](index=9&type=chunk) [Company Contact and Listing Information](index=5&type=section&id=Company%20Contact%20and%20Listing%20Information) The company disclosed key corporate information, including its independent auditor, registered office, share registrar, principal bankers, legal advisors, listing code, and investor relations contact details - Independent auditor is PricewaterhouseCoopers[10](index=10&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code **27**[10](index=10&type=chunk) - Investor relations contact details include telephone (852) 3150 1111, fax (852) 3150 1100, and email ir@galaxyentertainment.com[11](index=11&type=chunk) Company Profile [Vision and Operating Philosophy](index=2&type=section&id=Vision%20and%20Operating%20Philosophy) Galaxy Entertainment Group's vision is to become Asia's leading gaming and entertainment enterprise, achieving this through its operating philosophy - Vision: To be Asia's leading gaming and entertainment enterprise[3](index=3&type=chunk)[5](index=5&type=chunk) - Operating philosophy includes: deep understanding of local market, professional experience, clear positioning, and demand-driven strategy[4](index=4&type=chunk)[6](index=6&type=chunk) [Core Business and Properties](index=6&type=section&id=Core%20Business%20and%20Properties) The Group primarily develops and operates integrated resorts, retail, dining, hotel, and gaming facilities in Macau, with three flagship projects: "Galaxy Macau™", StarWorld Hotel, and "Broadway Macau™" - The Group is a world-leading resort, hotel, and gaming enterprise, primarily operating integrated resorts in Macau[14](index=14&type=chunk) - "Galaxy Macau™" is one of the world's largest integrated resorts, spanning **1.4 million square meters**, offering approximately **4,700 rooms, suites, and villas**, along with diverse retail, dining, entertainment, leisure, and MICE facilities[14](index=14&type=chunk)[17](index=17&type=chunk)[20](index=20&type=chunk) - StarWorld Hotel, opened in **2006**, is the Group's first five-star hotel, located in the heart of Macau Peninsula, featuring over **500 luxurious rooms and suites**[18](index=18&type=chunk)[21](index=21&type=chunk) - "Broadway Macau™", opened in **2015**, is connected to "Galaxy Macau™" via a sky bridge, offering approximately **310 rooms and suites**, and features the **2,500-seat** "Broadway Theatre" and a variety of local delicacies[26](index=26&type=chunk) [Future Development Opportunities](index=8&type=section&id=Future%20Development%20Opportunities) The Group is actively advancing several future development projects, including the upcoming full opening of Capella at Galaxy Macau, the Cotai Phase 4 expansion plan, and continuously exploring development opportunities in the Greater Bay Area and overseas markets - Capella at Galaxy Macau provided an exclusive preview in **May 2025**, with a full public opening expected in the coming months, offering approximately **100 ultra-luxury suites** and Capella Sky Villas[23](index=23&type=chunk) - Cotai Phase 4 plan will expand the footprint by **600,000 square meters**, including multiple high-end hotel brands, a theater with approximately **5,000 seats**, diverse dining, retail, non-gaming facilities, gardens, water play zones, and a casino, bringing the total hotel room and suite supply to approximately **7,000** upon completion[24](index=24&type=chunk) - The Group will continue to explore development opportunities in the Greater Bay Area and overseas, including a strategic investment in Société des Bains de Mer et du Cercle des Étrangers à Monaco, and is committed to youth education development in Macau and mainland China[25](index=25&type=chunk) Financial and Operational Highlights [Group Performance](index=9&type=section&id=Group%20Performance) In the first half of 2025, the Group achieved robust growth in both net revenue and adjusted EBITDA, with a significant increase in profit attributable to shareholders, maintaining a highly liquid balance sheet, and declaring an interim dividend Group's Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 23,200 | 21,470 | +8 | | Adjusted EBITDA | 6,900 | 6,011 | +14 | | Profit Attributable to Shareholders | 5,200 | 4,387 | +19 | | Cash and Liquid Investments (as of June 30) | 30,700 | 28,968 | +6 | | Net Cash (as of June 30) | 30,300 | 25,131 | +20.5 | | Interim Dividend (HKD per share) | 0.70 | 0.50 | +40 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 737 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 6.1 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) ["Galaxy Macau™" Performance](index=9&type=section&id=Galaxy%20Macau%E2%84%A2%20Performance) "Galaxy Macau™" achieved strong growth in H1 2025, with significant increases in both net revenue and adjusted EBITDA, maintaining high hotel occupancy, and growing non-gaming revenue "Galaxy Macau™" Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 19,100 | 16,958 | +13 | | Adjusted EBITDA | 6,300 | 5,395 | +18 | | Average Hotel Occupancy Rate | 98% | - | - | | Non-Gaming Revenue | 2,800 | 2,697 | +4 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 755 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 5.6 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) [StarWorld Hotel Performance](index=9&type=section&id=StarWorld%20Hotel%20Performance) StarWorld Hotel's net revenue and adjusted EBITDA both decreased in H1 2025, primarily due to a lower-than-normal gaming net win rate, though hotel occupancy remained at 100% StarWorld Hotel Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 2,400 | 2,692 | -10 | | Adjusted EBITDA | 653 | 825 | -21 | | Hotel Occupancy Rate | 100% | - | - | | Non-Gaming Revenue | 248 | 267 | -7 | - In H1 2025, the gaming business experienced a lower-than-normal net win rate, decreasing adjusted EBITDA by approximately **HKD 18 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 671 million**, a **14% year-on-year decrease**[32](index=32&type=chunk) ["Broadway Macau™", City Clubs, and Construction Materials Business Performance](index=9&type=section&id=Broadway%20Macau%E2%84%A2%2C%20City%20Clubs%2C%20and%20Construction%20Materials%20Business%20Performance) Adjusted EBITDA for "Broadway Macau™" and City Clubs both decreased, while the construction materials business saw growth in adjusted EBITDA, benefiting from improved sales in mainland China Adjusted EBITDA for Other Businesses in H1 2025 | Business | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | | :--- | :--- | :--- | | "Broadway Macau™" | 6 | 12 | | City Clubs | 3 | 9 | | Construction Materials Business | 423 | 365 | - Construction materials business adjusted EBITDA increased by **16% year-on-year**, primarily benefiting from improved sales in mainland China[32](index=32&type=chunk) [Recent Developments](index=10&type=section&id=Recent%20Developments) The Group continues to advance multiple development projects, including the exclusive preview of Capella at Galaxy Macau, enhancement of Cotai Phase 3 facilities, focus on non-gaming development for Cotai Phase 4, and exploration of overseas market opportunities such as Thailand - Capella at Galaxy Macau provided an exclusive private preview in May[33](index=33&type=chunk) - Cotai Phase 3 continues to enhance the performance of Galaxy International Convention Center, Galaxy Arena, Raffles at Galaxy Macau, and Andaz Macau[33](index=33&type=chunk) - Cotai Phase 4 project focuses on non-gaming businesses, primarily targeting entertainment and family-friendly facilities, in addition to a casino[33](index=33&type=chunk) - The Group continues to explore development opportunities in overseas markets, including Thailand[33](index=33&type=chunk

Group 1 - UBS report indicates that the upcoming Federal Reserve interest rate cuts will benefit Hong Kong real estate but negatively impact Hong Kong banks [1] - The bank maintains a cautious stance on bank stocks, currently underweighting them, and has placed Hang Seng Bank on its least favored list [1] - UBS continues to favor Hong Kong property developers and has a positive outlook on Wynn Macau and Galaxy Entertainment due to improved demand from high-end clientele and attractive dividend yields [1] Group 2 - In the first half of the year, approximately 98% of the 49 Hong Kong-listed companies covered by UBS have reported earnings, with an overall net profit decline of 7% year-on-year despite a 4% increase in revenue [2] - More than half of the companies met expectations, but those falling short slightly outnumbered those exceeding expectations; the financial sector performed well due to favorable market conditions and better-than-expected non-interest income [2] - The upcoming interest rate cuts are expected to reverse the outperformance of bank stocks, which have outperformed Hong Kong real estate stocks by 80% since the HIBOR uptrend began in December 2021 [2]

Group 1 - The upcoming interest rate cuts by the Federal Reserve are expected to benefit Hong Kong real estate while negatively impacting Hong Kong banks [1] - UBS maintains a cautious stance on banks, currently underweighting bank stocks and listing Hang Seng Bank as one of the least favored [1] - The firm continues to favor Hong Kong property developers as the interest rate cut cycle approaches, predicting a reversal of the trend where banks have outperformed property developers since 2022 [1] Group 2 - In the first half of the year, 98% of the 49 Hong Kong-listed companies covered by UBS reported a net profit decline of 7% year-on-year, despite a 4% increase in revenue [2] - The financial sector performed well, benefiting from favorable market conditions and better-than-expected non-interest income, while sectors like Macau gaming and airlines faced more companies falling short of expectations [2] - UBS has included Wynn Macau and Galaxy Entertainment in its top recommendations due to improved demand from high-end customers and sustainable revenue momentum [2]

Core Viewpoint - Galaxy Entertainment (00027) is currently experiencing volatility in its stock price, trading between 41 and 42 HKD, with a trading volume of 139 million HKD, indicating a critical battle between bulls and bears as the market focuses on potential breakout directions [1][6]. Technical Analysis - The current support levels for Galaxy Entertainment are at 39.8 HKD (Support 1) and 38.9 HKD (Support 2), while resistance levels are at 42.8 HKD (Resistance 1) and 43.6 HKD (Resistance 2) [1]. - The stock price is slightly above the 10-day moving average of 40.99 HKD and has clearly surpassed the 30-day (39.73 HKD) and 60-day (37.71 HKD) moving averages, indicating a positive medium-term trend [1]. - The Relative Strength Index (RSI) is currently at 63, approaching the overbought zone, with several oscillators showing neutral to bullish signals, and momentum oscillators indicating a buy signal, reflecting a moderate upward trend [1]. Market Sentiment and Investment Flow - There has been a notable increase in the issuance of call warrants related to Galaxy Entertainment, with approximately 27 million warrants in circulation, reflecting strong investor interest [3]. - The stock has seen a rise from the low 20s to the recent 40s, driven by positive data from mainland tourists and Macau's gaming revenue growth, alongside tourism promotions and new hotel openings [3]. - The latest call warrant issued by the company has a strike price of 51.88 HKD, expiring in January next year, with a leverage of around 6 times, indicating strong investor engagement [3][4].

Core Viewpoint - Morgan Stanley has updated its forecasts for Galaxy Entertainment (00027) based on the company's mid-term performance, increasing the expected dividend payout ratio for 2025 to 2027 from 50% to 60%, resulting in a 19% increase in the predicted dividend per share [1] Financial Projections - EBITDA forecasts for Galaxy Entertainment for 2025 to 2027 have been reduced by 1% due to higher expected operating expenses [1] - Earnings per share forecasts have been adjusted from HKD 2.39, HKD 2.58, and HKD 2.73 to HKD 2.36, HKD 2.56, and HKD 2.72 respectively for the same period [1] - The target price for Galaxy Entertainment has been raised from HKD 40 to HKD 44 [1] Market Position and Risks - The opening of the Capella Hotel is expected to help Galaxy Entertainment increase its market share [1] - The company has been given a "in line with the market" rating, but there are warnings that if competitors resume dividends and the company's market share continues to weaken, some potential premiums may reverse [1]