Investment Rating - The report maintains a "Positive" outlook on the overseas pharmaceutical sector, highlighting significant developments and collaborations in the industry [1]. Core Insights - The collaboration between Insilico Medicine and Heng Tai Biologics to develop an innovative brain-penetrating NLRP3 inhibitor is a key highlight, with potential applications in treating central nervous system diseases [2][7]. - The approval of full circulation for Fuhong Hanlin's H shares is noted, which involves a significant number of shares and stakeholders [2][7]. - The report emphasizes the strong revenue growth projections for companies like MicroPort Robotics and King’s Ray Biotech, with expected revenue increases of approximately 110%-120% year-on-year for 2025 [6][10]. Summary by Sections 1. Overseas Pharmaceuticals - Insilico Medicine and Heng Tai Biologics have entered a partnership to develop ISM8969, a novel oral NLRP3 inhibitor, with a 50% global rights share and potential milestone payments exceeding HKD 500 million [2][7]. - Fuhong Hanlin's H shares have received approval for full circulation, involving 182,645,856 shares, which represents about 33.61% of the company's total issued shares [2][7]. 2. Company Performance Updates - MicroPort Robotics anticipates a revenue increase of 110%-120% for 2025, with adjusted net losses expected to narrow by over 50% [6][10]. - King’s Ray Biotech's joint venture, Legend Biotech, is projected to generate approximately USD 555 million in trade sales for the quarter ending December 31, 2025 [6][10]. 3. Recent Developments in Overseas Pharmaceutical Companies - GSK has reached an agreement to acquire RAPT Therapeutics for approximately USD 2.2 billion, focusing on a long-acting IgE monoclonal antibody currently in clinical trials [3][8]. - Corvus has reported positive results from a Phase I trial of its ITK inhibitor for moderate to severe atopic dermatitis, showing good safety and efficacy [3][9]. - Eli Lilly's FRα ADC has received breakthrough therapy designation from the FDA for treating platinum-resistant ovarian cancer [3][9]. 4. Recommendations - The report suggests monitoring innovative drug companies with active commercialization and business development opportunities, including companies like BeiGene, Innovent Biologics, and Fuhong Hanlin [13]. - It also highlights the importance of ongoing clinical progress in innovative pipelines for pharmaceutical companies transitioning towards innovation [13].

同業受品牌費用及地緣局勢影響，集團料獲得較多投資者青睞於2025 年12 月，同業美高梅中國(2282 HK)宣佈與母公司美高梅國際(MGM US)簽定新的品牌協議，新合約收取的品牌費用由原先每月綜合收 益淨額的1.75%，大增一倍至3.5%，於2026 年1 月生效，為期最多不超過20 年，令市場對需要支付品牌 費用的同業，包括金沙中國(1928 HK)及永利澳門(1128 HK)的戒心增加。再加上地緣局勢的考慮，預期 在同業之中，銀河娛樂可獲得較多投資者的青睞。 估值仍處於疫情前區間的偏低水平 按彭博綜合預測，集團現價相當於10.6 倍的2026 年EV/EBITDA，而在疫情前，集團的EV/EBITDA 估 值大多數時間處於10.0 至14.0 倍的區間之中，目前的估值仍處於此區間的偏低水平。隨著業績逐步改 善，估值有進一步重新上調的空間。 机构：信达国际 研究员：彭日飛 2025 年第四季市場份額有所增加，2026 年有望進一步提高於2025 年第三季，銀河娛樂錄得淨收益122 億港元，按年上升14%，經調整EBITDA 為33 億港元，按年上升14%，淨贏率正常化後之經調整 EBITDA 則按年上升 ...

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 45.50, indicating an upside potential of 12.6% from the current price of HKD 40.42 [5][8]. Core Insights - The company recorded a net revenue of HKD 12.2 billion for Q3 2025, representing a year-on-year increase of 14%. Adjusted EBITDA also rose by 14% to HKD 3.3 billion, with a normalized net win rate leading to a 7% increase in adjusted EBITDA [1]. - The company's market share is estimated to be around 20% for the full year of 2025, maintaining its position as the second-largest player in the industry. Management indicated an increase in market share for Q4 2025, with expectations for further growth in 2026 due to the utilization of new projects opening in December 2023 [1]. - Macau's gaming revenue is projected to grow by 9.1% year-on-year to MOP 247.4 billion in 2025, with a significant increase of 13.8% in the second half of 2025. The upcoming longer Spring Festival holiday in 2026 is expected to boost travel demand from mainland citizens, benefiting the tourism sector and the company [2]. - Competitors are facing increased brand fees and geopolitical concerns, which may lead to a preference for the company among investors. MGM China announced a new brand agreement that doubles its brand fees, raising market concerns for other competitors [3]. - The company's current valuation is at 10.6 times the 2026 EV/EBITDA, which is considered low compared to the pre-pandemic range of 10.0 to 14.0 times, suggesting potential for valuation re-rating as performance improves [4]. Financial Summary - Revenue projections for the company are as follows: FY22: HKD 11.474 billion, FY23: HKD 35.684 billion, FY24: HKD 43.432 billion, FY25E: HKD 48.574 billion, FY26E: HKD 52.232 billion [5]. - EBITDA projections are: FY22: HKD (0.553) billion, FY23: HKD 9.955 billion, FY24: HKD 12.188 billion, FY25E: HKD 14.020 billion, FY26E: HKD 14.971 billion [5].

Core Viewpoint - Morgan Stanley's research report indicates a slight decline in profit margins for the Macau gaming industry in Q4 2025 due to unfavorable business mix changes (higher proportion of VIP customers) and increased operating expenses [1] Industry Summary - The average adjusted property EBITDA for the industry is expected to increase by 4% quarter-on-quarter and 13% year-on-year in Q4, aligning with market expectations [1] Company Summary - Morgan Stanley is optimistic about Galaxy Entertainment and Sands China, both rated "Overweight" [1] - The rating for Melco Resorts China was downgraded to "In Line with the Market" in December due to high royalty expenses [1] - A "Underweight" rating was assigned to SJM Holdings [1]

Group 1 - The core viewpoint of the articles indicates a rebound in Hong Kong's gaming stocks, particularly in the Macau gaming sector, with significant increases in stock prices for companies like Melco International Development and Galaxy Entertainment [1] - According to a report by Jefferies, Macau's gaming revenue has shown strong growth, with an average daily revenue of 693 million MOP as of January 11, reflecting an 18% year-on-year increase [1] - Jefferies' industry survey suggests that Macau's gaming revenue is expected to grow by 15% to 21% year-on-year for the entire month of January [1] Group 2 - Specific stock performance includes Melco International Development rising by 3.5%, Galaxy Entertainment and Huayi Tencent Entertainment increasing by over 3%, and Sands China and Wynn Macau rising by over 2% [2] - The report highlights a shift in investor preference towards U.S. regional gaming stocks, although Jefferies maintains that the fundamentals of stocks primarily operating in Macau are superior to their peers [1] - Jefferies continues to favor Wynn and Sands in the U.S. market, as well as Galaxy Entertainment and Sands China in the Hong Kong market [1]

Group 1 - The Hong Kong gaming stocks, which have been experiencing a continuous decline, are now witnessing a rebound in the market [1] - Notable gains include SJM Holdings rising by 3.5%, while Galaxy Entertainment, Melco International Development, and MGM China all increased by over 3% [1] - Sands China and Wynn Macau saw increases of over 2%, and both Genting Hong Kong and Amax Holdings rose by 1% [1]

Group 1 - The core viewpoint of the articles indicates that Macau's gaming revenue is expected to show strong growth starting in 2026, with recent data supporting this trend [1][2] - According to a report from Jefferies, Macau's gaming revenue averaged MOP 693 million per day as of January 11, reflecting an 18% year-on-year increase [1] - The industry survey suggests that January's gaming revenue could achieve a year-on-year growth of 15% to 21%, indicating a positive outlook for the sector [1] Group 2 - UBS noted that the average daily gaming revenue in Macau over the past seven days was approximately MOP 693 million, which is lower than the MOP 800 million average in the first four days of January [2] - Year-to-date, Macau's gaming revenue has reached a solid average of MOP 732 million per day, representing a year-on-year growth of about 24% and a month-on-month growth of approximately 9% [2] - This performance is significantly better than the seasonal growth of about 2% observed from 2015 to 2019 [2]

Core Insights - UBS reports that the average daily gaming revenue in Macau over the past seven days was approximately 693 million MOP, lower than the 800 million MOP in the first four days of the month [1] - Year-to-date, the average daily gaming revenue stands at about 732 million MOP, reflecting a year-on-year increase of approximately 24% and a month-on-month increase of about 9%, outperforming the seasonal growth of around 2% from 2015 to 2019 [1] Business Segment Performance - In the various business segments, the mass market gaming revenue daily run rate increased by 8% to 10% month-on-month, while the VIP room turnover grew by 6% to 8% [1] - The win rate for VIP rooms was reported at 2.7% to 2.9%, compared to a win rate below 3% in December [1] Market Expectations - The market anticipates an average daily gaming revenue of approximately 677 million MOP for January, which represents a year-on-year growth of about 15% [1] - To meet this expectation, the average daily run rate for the remaining 20 days of January needs to reach around 647 million MOP [1] Valuation Metrics - The gaming sector is currently trading at 8.8 times the estimated enterprise value/EBITDA for 2026, which is 0.6 standard deviations below its two-year average [1] - UBS prefers Galaxy Entertainment (00027) and Wynn Macau (01128) as top picks within this sector [1]

Group 1 - The core viewpoint of the articles indicates a rebound in Hong Kong gaming stocks, with notable increases in share prices for companies such as Melco International Development, Galaxy Entertainment, and MGM China [1] - According to a report by Jefferies, Macau's gaming revenue is expected to show strong growth, with an average daily revenue of MOP 693 million for the first seven days of January, representing an 18% year-on-year increase [1] - Jefferies' industry survey suggests that Macau's gaming revenue for January could achieve a year-on-year growth of 15% to 21% [1] Group 2 - Specific stock performance includes Melco International Development rising by 3.5%, Galaxy Entertainment and Huayi Brothers Media increasing by over 3%, and Sands China and Wynn Macau rising by over 2% [2] - The report highlights a shift in investor preference towards U.S. regional gaming stocks, although Jefferies maintains that the fundamentals of stocks primarily operating in Macau are superior to their peers [1] - Jefferies continues to favor Wynn and Sands in the U.S. market, as well as Galaxy Entertainment and Sands China in the Hong Kong market [1]

Group 1 - The core viewpoint of the article highlights a strong upward trend in Macau's gaming stocks, with significant increases in share prices for major companies such as Melco International Development, Galaxy Entertainment, MGM China, Sands China, and Wynn Macau [1] - According to a report by Jefferies, Macau's total gaming revenue is expected to show robust growth in early 2026, with an average daily revenue of MOP 693 million from January 1 to January 11, representing an 18% year-on-year increase [1] - UBS noted that due to calendar effects, the average daily gaming revenue in Macau over the past week was approximately MOP 693 million, lower than the MOP 800 million average in the first four days of January, but the total revenue for January so far stands at a solid average of MOP 732 million, reflecting a year-on-year growth of about 24% and a month-on-month growth of about 9% [1] Group 2 - Jefferies' industry survey indicates that the entire month of January is expected to achieve a year-on-year growth of 15% to 21%, despite a recent shift in investor preference towards U.S. regional gaming stocks [1] - The reported figures support Jefferies' view that stocks with primary operations in Macau have stronger fundamentals compared to their peers [1] - The monthly growth rate of Macau's gaming revenue in January is significantly better than the seasonal performance observed from 2015 to 2019, which averaged around 2% month-on-month growth [1]