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].

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment [1] Core Views - The company's performance slightly exceeded expectations, with cost control measures expected to continue reducing expense ratios and improving EBITDA profit margins [2] - In Q2 2024, the company achieved net revenue of HKD 10.92 billion, recovering to 82.8% of Q2 2019 levels, with gaming and non-gaming revenues at HKD 8.60 billion and HKD 1.48 billion respectively [2][3] - The company is focusing on enhancing its non-gaming family entertainment offerings to strengthen long-term competitiveness [3] Financial Forecasts - Revenue projections for 2024-2026 are HKD 45.62 billion, HKD 50.31 billion, and HKD 53.49 billion respectively, with adjusted property EBITDA forecasts of HKD 12.75 billion, HKD 15.38 billion, and HKD 16.66 billion [3] - The current stock price corresponds to EV/EBITDA multiples of 9.1, 7.6, and 7.0 for 2024, 2025, and 2026 respectively [3] - The target price is set at HKD 46.6 [3] Market Share and Performance - The company's total gaming revenue in Q2 2024 was HKD 10.34 billion, recovering to 68.0% of Q2 2019 levels, with market share increasing to 18.9% [3] - The VIP gaming revenue recovery is slower than the industry average, but the company has increased its market share by 1.5 percentage points to 10.8% [3] Investment in Infrastructure - The company invested HKD 1.1 billion in property renovations in Q2, with significant funds allocated to the construction of Galaxy Phase 3 and 4, aiming to attract high-value customers [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 43.54, equivalent to 14 times the 2024 EV/EBITDA [1][2]. Core Insights - The company's net revenue for Q2 2024 increased by 26.1% year-on-year and 3.5% quarter-on-quarter, reaching HKD 10.92 billion, recovering to 82.9% of the same period in 2019 [1]. - The VIP gaming table turnover rose by 58.9% year-on-year and 20.0% quarter-on-quarter, while mass gaming revenue grew by 31.9% year-on-year and 7.3% quarter-on-quarter [1]. - The adjusted EBITDA increased by 28.4% year-on-year and 12.0% quarter-on-quarter to HKD 3.18 billion, with an EBITDA margin of 29.1% [1]. - The company announced an interim dividend of HKD 0.5 per share, increasing the payout ratio to 50% [1]. - The company is expanding its offerings with the introduction of a new hotel brand and ongoing construction projects, which are expected to enhance its market position [1]. Financial Summary - Total net revenue for 2023 was HKD 35.68 billion, with a projected increase to HKD 43.91 billion in 2024, reflecting a growth rate of 23.1% [3][4]. - The EBITDA for 2023 was HKD 9.96 billion, with a forecasted increase to HKD 12.62 billion in 2024, indicating a growth of 26.8% [3][4]. - Net profit for 2023 was HKD 6.83 billion, expected to rise to HKD 9.72 billion in 2024, showing a growth of 42.3% [3][4]. - The company’s cash position remains strong, with net cash of HKD 25.2 billion, one of the strongest in the industry [1].

Financial Performance - For the first half of 2024, the group's net revenue increased by 37% to HKD 21.5 billion, and adjusted EBITDA also rose by 37% to HKD 6 billion[4]. - In Q2 2024, the group's adjusted EBITDA was HKD 3.2 billion, representing a year-on-year increase of 28% and a quarter-on-quarter increase of 12%[4]. - The group reported a net profit attributable to shareholders of HKD 4.4 billion for the first half of 2024, up 52% year-on-year[4]. - Revenue for the six months ended June 30, 2024, reached HKD 21,470,552 thousand, a 36.6% increase from HKD 15,715,349 thousand in the same period of 2023[9]. - Net profit for the period was HKD 4,407,244 thousand, up 52.0% from HKD 2,897,450 thousand year-over-year[10]. - Basic earnings per share increased to HKD 100.3 from HKD 66.2, reflecting a 51.4% growth[9]. - Total comprehensive income for the period was HKD 4,259,060 thousand, compared to HKD 3,957,591 thousand in the previous year, marking a 7.6% increase[10]. - Adjusted EBITDA for the gaming and entertainment segment was HKD 5,723,987,000, while the construction materials segment reported HKD 366,164,000, leading to a total adjusted EBITDA of HKD 6,011,045,000 for 2024[19]. - The company recorded a net profit of HKD 4,407,244,000 for the six months ending June 30, 2024, compared to HKD 2,897,450,000 for the same period in 2023, indicating an increase of approximately 52%[19][20]. Cash and Investments - As of June 30, 2024, the group held cash and liquid investments of HKD 29 billion, resulting in a net amount of HKD 25.2 billion after deducting liabilities of HKD 3.8 billion[8]. - Cash and cash equivalents increased to HKD 17,372,495 thousand from HKD 14,511,770 thousand, indicating a 19.8% rise[11]. - The company maintains a conservative treasury policy, primarily investing surplus cash in time deposits and high-quality listed debt securities[51]. - The company has no leverage ratio and continues to monitor its borrowing levels closely to ensure smooth repayment of debts[50]. Dividends - The group announced an interim dividend of HKD 0.50 per share, to be distributed around October 25, 2024[8]. - The company declared a special dividend of HKD 0.30 per share, totaling approximately HKD 1.311 billion, payable on April 26, 2024[57]. - The interim dividend of HKD 0.50 per share is expected to total approximately HKD 2.190 billion, payable on October 25, 2024[57]. Market and Operations - The average occupancy rate of the seven hotels in Q2 2024 was 98%[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[9]. - The company plans to continue expanding its operations in Macau and Hong Kong, focusing on enhancing its gaming and entertainment offerings while also growing its construction materials business[19]. - The company is investing over HKD 33 billion in non-gaming initiatives to support the diversification of Macau's tourism products under the new license[47]. - The company plans to enhance its resort offerings by upgrading dining and retail options to maintain competitiveness and customer appeal[43]. Development Projects - The group is advancing the internal renovations and Phase 4 development of Galaxy Macau, focusing on non-gaming businesses and family-friendly facilities[3]. - The Galaxy Macau's new project, expected to open in mid-2025, will feature approximately 100 luxury sky villas and suites[44]. - The fourth phase development, covering approximately 600,000 square meters, aims to introduce several high-end hotel brands and is expected to be completed by 2027[45]. Regulatory and Economic Environment - The government has expanded the individual visit scheme to 59 applicable cities, covering a total population of approximately 500 million[2]. - The company plans to support the Macau government's economic diversification efforts and attract more overseas tourists through its investment commitments[12]. - Macau's tourism demand is expected to continue growing, supported by improved transportation links and government initiatives to attract international visitors[46]. Accounting and Compliance - The company has adopted revised accounting standards in 2024, which are not expected to have a significant impact on its financial performance and position[15]. - The company is currently evaluating the impact of new accounting standards and amendments that will take effect in the coming years[16]. - The company's financial statements for the six months ended June 30, 2024, were prepared in accordance with Hong Kong Financial Reporting Standards[13]. Visitor Statistics - The number of visitors to Macau in the first half of 2024 was 16.7 million, a 44% increase compared to the previous year[30].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 50.97, representing a potential upside of 30.86% from the current stock price of HKD 38.95 [1][2]. Core Insights - The company's Q1 2024 performance met expectations, with net revenue increasing by 49.6% year-on-year to HKD 10.55 billion, recovering to 80.9% of the 2019 level [1]. - The VIP gaming table turnover rose by 78.5% year-on-year, while mass gaming revenue increased by 57.0% year-on-year, although it saw a slight decline of 1.3% quarter-on-quarter due to lower win rates [1]. - The adjusted EBITDA grew by 48.7% year-on-year to HKD 2.84 billion, with an EBITDA margin of 26.9% [1]. - The company holds a strong balance sheet with net cash of HKD 25 billion, the strongest in the industry [1]. Financial Performance Summary - Total net revenue for 2023 was HKD 35.68 billion, with a projected increase to HKD 44.31 billion in 2024, reflecting a year-on-year growth of 24.2% [3][4]. - The EBITDA for 2023 was HKD 9.96 billion, expected to rise to HKD 12.79 billion in 2024, indicating a growth rate of 28.4% [3][4]. - Net profit for 2023 was HKD 6.83 billion, with projections of HKD 10.20 billion for 2024, showing a significant increase of 49.4% [3][4]. - The company’s earnings per share (EPS) is projected to grow from HKD 1.6 in 2023 to HKD 2.3 in 2024 [3][4]. Market Position and Future Developments - The company’s market share has shown signs of recovery in April and May, benefiting from an increase in sales personnel and the introduction of smart gaming tables [1]. - The company plans to launch a new hotel brand, Capella, in mid-2025 and is progressing with the construction of the fourth phase of its Macau project, expected to be completed by 2027 [1]. - The company is focusing on enhancing its dining and retail offerings and has a strong interest in expanding into Thailand [1].

Corporate Vision and Strategy - Galaxy Entertainment Group's vision is to become Asia's premier gaming and entertainment enterprise, leveraging deep insights into local markets and Chinese culture to maintain a competitive edge[2] - The company's vision is to become "Asia's leading gaming and entertainment enterprise" and it aims to achieve this through its operational philosophy outlined in the annual report[70] - The company successfully launched Phase 3 projects in 2023, including the Galaxy International Convention Center, Galaxy Arena, Andaz Macau, and Raffles at Galaxy Macau, focusing on non-gaming elements to align with Macau's government policies[70] - Phase 4 projects have commenced, further expanding the company's non-gaming facilities to attract a more diverse customer base and support Macau's vision as a "World Center of Tourism and Leisure"[70] Macau Operations and Facilities - The company operates three flagship projects in Macau, including the "Macau Galaxy™" integrated resort, which spans 1.4 million square meters and features seven world-class hotels with approximately 4,750 rooms[6][7] - "Macau Galaxy™" includes the Galaxy International Convention Center, offering 40,000 square meters of event space, capable of hosting up to 16,000 guests for cocktail events[7] - The Galaxy Arena, part of "Macau Galaxy™," is Macau's largest indoor arena, accommodating up to 16,000 guests and equipped with advanced audiovisual technology[8] - The resort's "Sky Wave" water park covers 75,000 square meters, featuring a 575-meter-long "Sky River" and a wave pool with artificial waves up to 1.5 meters high[7] - Galaxy Fashion Mall, within "Macau Galaxy™," spans over 100,000 square meters and houses more than 200 international luxury and lifestyle brands[7] - The resort offers over 120 dining options, ranging from Michelin-starred restaurants to local culinary experiences[7] - The Galaxy Cinema, equipped with 3D and 4K laser projection systems, provides an unparalleled movie experience across 10 independent theaters[7] - The company's third phase expansion, including the Galaxy International Convention Center and Raffles at Galaxy Macau, opened in 2023, further enhancing its offerings[7] - The company is advancing the development of Phase 4 in Cotai, which will expand its footprint by 600,000 square meters and add approximately 7,500 hotel rooms and suites upon completion[11] - The company completed several development projects in 2023, including the opening of Raffles at Galaxy Macau, the Sky Club high-limit gaming area, and the Galaxy International Convention Center[25] - The company plans to expand its international presence with new offices in Tokyo, Seoul, and Bangkok, aiming to attract high-end international tourists[25] - The company's properties, including Banyan Tree Macau, Galaxy Hotel, Okura Macau, and The Ritz-Carlton Macau, received Forbes Travel Guide Five-Star awards[27] - Galaxy Macau was ranked second in the Asia-Pacific region for Best Integrated Resort and third for Best Hotel in Macau by Travel + Leisure[29] - The company's properties received multiple sustainability awards, including the EarthCheck Gold Certification for Banyan Tree Macau and the Macau Environmental Protection Hotel Award - Gold Award for several properties[29] - Galaxy Entertainment Group's restaurants, including 8½ Otto e Mezzo Bombana and Lai Heen, received Michelin stars and Forbes Travel Guide Five-Star awards[31] - The company's resorts feature over 120 restaurants, offering the widest variety of Pan-Asian and international cuisine in Macau[30] Financial Performance - Net revenue for the group increased by 211% year-on-year to HKD 35.7 billion[14] - Adjusted EBITDA for the group reached HKD 10 billion, compared to a loss of HKD 600 million in 2022[14] - Shareholders' profit attributable was HKD 6.8 billion, compared to a loss of HKD 3.4 billion in 2022[14] - Cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[14] - "Galaxy Macau™" net revenue increased by 274% year-on-year to HKD 27.7 billion, with adjusted EBITDA of HKD 9.1 billion[15] - "StarWorld Macau" net revenue surged by 343% year-on-year to HKD 4.6 billion, with adjusted EBITDA of HKD 1.3 billion[16] - The group's total gaming revenue increased from HKD 7.5 billion in 2022 to HKD 31.7 billion in 2023, driven by a significant rise in mass market gaming turnover[18] - Total gaming revenue increased significantly from HKD 6,258 million in 2022 to HKD 26,657 million in 2023, reflecting a strong recovery in the gaming sector[21] - Adjusted EBITDA for 2023 was HKD 1,278 million, compared to a negative HKD 527 million in 2022, with an adjusted EBITDA margin of 28%[22] - The company's cash and liquid investments totaled HKD 25 billion as of December 31, 2023, with net cash of HKD 23.5 billion[24] - Galaxy Entertainment Group announced a special dividend of HKD 0.30 per share, expected to be paid on April 26, 2024[24] - Group net revenue increased by 211% year-on-year to HKD 35.7 billion, with adjusted EBITDA reaching HKD 10 billion, compared to HKD (6) billion in 2022[33] - Galaxy Macau™ adjusted EBITDA was HKD 9.1 billion, up from HKD 295 million in 2022, with normalized adjusted EBITDA at HKD 9.3 billion, a 2,739% increase year-on-year[39] - Total gaming revenue for 2023 was HKD 317 billion, a 322% increase year-on-year, with mass market gaming revenue up 328% to HKD 265 billion[33] - StarWorld Hotel recorded net revenue of HKD 4.6 billion, a 343% increase year-on-year, with adjusted EBITDA of HKD 1.3 billion, compared to HKD (527) million in 2022[41] - Group cash and liquid investments stood at HKD 25 billion, with net cash of HKD 23.5 billion and liabilities of HKD 1.5 billion as of December 31, 2023[37] - The company declared a special dividend of HKD 0.20 per share on October 27, 2023, and announced another special dividend of HKD 0.30 per share to be paid around April 26, 2024[37] - Average hotel occupancy rate across seven hotels was 87% in 2023, with StarWorld Hotel achieving a 99% occupancy rate[40][41] - Mass market gaming turnover increased by 328% year-on-year to HKD 265 billion, while VIP gaming turnover rose by 273% to HKD 34 billion[33] - Slot machine gaming revenue increased by 340% year-on-year to HKD 1.8 billion, with a consistent net win rate of 3.5%[33] - Galaxy Macau™ mass market gaming turnover reached HKD 80.8 billion in 2023, with a net win rate of 27%, contributing HKD 21.8 billion in gaming revenue[40] - Macau StarWorld Hotel's total net revenue for Q4 2023 was HKD 1,255 million, with adjusted EBITDA of HKD 353 million and a margin of 28%[42] - Macau Broadway's net revenue in 2023 increased by 72% year-on-year to HKD 103 million, with adjusted EBITDA improving from HKD (62) million in 2022 to HKD (36) million[43] - City Clubs' net revenue in 2023 surged by 264% year-on-year to HKD 222 million, with adjusted EBITDA turning positive at HKD 15 million compared to HKD (21) million in 2022[44] - Galaxy Entertainment Group's construction materials business achieved adjusted EBITDA of HKD 698 million in 2023, up 23% year-on-year[45] - The company's net cash position remains strong at HKD 23.5 billion, with minimal debt[49] - During the Lunar New Year, the company's mid-mass gaming turnover and revenue reached 120% of 2019 levels, with total visitor arrivals to Macau reaching 1.4 million over 8 days[49] - The company announced a special dividend of HKD 0.30 per share, payable around April 26, 2024[48] - Total equity attributable to the company's shareholders increased to HKD 70.759 billion as of December 31, 2023, up 11% from HKD 63.914 billion as of December 31, 2022[51] - Total assets of the group increased to HKD 87.215 billion as of December 31, 2023, compared to HKD 80.961 billion as of December 31, 2022[51] - The group's investment in listed debt securities decreased significantly from HKD 9.019 billion as of December 31, 2022, to HKD 6.787 billion as of December 31, 2023[51] - The group holds 5,200,000 shares of Wynn Resorts, representing approximately 4.7% of its issued share capital, with a fair value of HKD 3.7 billion as of December 31, 2023[52] - The group's cash and bank balances (including time deposits) totaled HKD 14.5 billion as of December 31, 2023, compared to HKD 14.011 billion as of December 31, 2022[53] - Total debt of the group decreased to HKD 1.453 billion as of December 31, 2023, from HKD 7.505 billion as of December 31, 2022[53] - The group employed approximately 20,400 employees in Hong Kong, Macau, and Mainland China as of December 31, 2023, with employee costs (excluding director remuneration) amounting to HKD 7.049 billion[57] - The group provided guarantees of HKD 4.77 billion for credit facilities granted to subsidiaries, of which HKD 596 million was utilized as of December 31, 2023[56] - The company paid a special dividend of HKD 0.20 per share for the year ended December 31, 2023, totaling HKD 0.20 per share for the year (2022: HKD 0.30 per share)[111] - The company announced a special dividend of HKD 0.30 per share, totaling approximately HKD 1.31 billion, to be paid around April 26, 2024[111] - The distributable reserves of the company as of December 31, 2023, were HKD 83,340,567,000 (2022: HKD 84,224,270,000)[112] - The company's main business includes investment holding, casino operations, hotel services, and the manufacturing, sales, and distribution of construction materials in Hong Kong, Macau, and Mainland China[110] - The company voluntarily publishes unaudited quarterly financial data to allow stakeholders to better assess its performance[104] - The company has established various communication channels with shareholders and investors, including electronic delivery of company communications[104] - Shareholders holding at least 5% of the total voting rights can request the board to convene a general meeting[106] - Shareholders holding at least 2.5% of the total voting rights or at least 50 shareholders can request the company to circulate a statement of no more than 1,000 words regarding matters to be discussed at a general meeting[107] - The company's board of directors has the discretion to decide on dividend payments based on financial conditions, economic climate, and future expectations[111] - The company's distributable reserves decreased from HKD 84,224,270,000 in 2022 to HKD 83,340,567,000 in 2023[112] - The company achieved its annual environmental targets for 2023, reducing energy and water consumption by 3% and increasing waste diversion rate by 4-5%[114] - The company's local suppliers accounted for 62% of its total suppliers in 2023[118] - The company issued a total of 780,453 new ordinary shares due to the exercise of share options and allocated 3,894,565 new ordinary shares to satisfy share awards under the share incentive plan[119] - The trustee of the 2021 Share Incentive Plan purchased a total of 504,488 shares on the Hong Kong Stock Exchange at a total cost of approximately HKD 25.83 million[120] - The trustee of the 2014 Share Incentive Plan sold 320,216 forfeited shares, generating HKD 16.52 million[120] - The total remuneration for the Board of Directors is HKD 430,000 for the Chairman and HKD 390,000 for members[122] - The total remuneration for the Audit Committee is HKD 210,000 for the Chairman and HKD 170,000 for members[122] - The total remuneration for the Corporate Governance Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Nomination Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - The total remuneration for the Remuneration Committee is HKD 110,000 for the Chairman and HKD 85,000 for members[122] - Lui Che Woo holds 1,770,199,554 shares, representing 40.47% of the issued shares[125] - Lui Yiu Tung holds 1,814,384,709 shares, representing 41.49% of the issued shares[125] - Tang Lui Wai Yu holds 1,376,508,478 shares, representing 31.47% of the issued shares[125] - City Lion Profits Corp. holds 973,282,206 shares, representing 22.25% of the issued shares[128] - CWL Assets (PTC) Limited holds 1,362,225,231 shares, representing 31.15% of the issued shares[128] - Galaxy Entertainment Group adopted a new share option plan (2023 Share Option Plan) on May 22, 2023, replacing the 2021 Share Option Plan, which was terminated on the same day[130] - A total of 11,194,000 share options were granted under the 2023 Share Option Plan since its adoption[130] - The total number of shares that can be issued under the 2023 Share Option Plan and other share incentive plans, including the 2023 Share Award Scheme, is 436,914,130 shares, representing 10% of the issued shares as of May 22, 2023[131] - The maximum number of shares that can be issued to service providers under the 2023 Share Option Plan and other share incentive plans is 43,691,413 shares, representing 10% of the total authorized limit[131] - As of the annual report date, 11,169,000 share options granted under the 2023 Share Option Plan remain unexercised, representing approximately 0.26% of the issued shares[133] - A total of 3,035,500 share awards granted under the 2023 Share Award Scheme remain unvested, representing approximately 0.07% of the issued shares[133] - The total number of shares that can be issued under the 2023 Share Option Plan and the 2023 Share Award Scheme is 422,709,630 shares, representing approximately 9.67% of the issued shares[133] - Each participant can be granted share options and other incentives up to 1% of the total issued shares within any 12-month period[134] - The exercise period for share options must not exceed 10 years from the date of grant[134] - The 2023 Share Option Plan will be effective for 10 years from May 22, 2023, and will expire on May 22, 2033[135] - The total number of stock options granted in 2023 was 11,194,000, with a total of 7,668,000 options granted on December 29, 2023, at an exercise price of HKD 43.75[137] - The weighted average closing price of shares before the exercise date in 2023 was HKD 49.41[137] - The fair value of stock options granted during the year was calculated using the Black-Scholes model[140] - The total number of stock options held as of December 31, 2023, was 43,769,061, with 34,477,497 options held at the beginning of the year[137] - The exercise price for options granted on October 7, 2022, was HKD 48.65, with a vesting period of 50% on the first and second anniversaries of the grant date[140] - The weighted average closing price of shares before the exercise date in 2023 for certain options was HKD 52.90[139] - The total number of stock options exercised during the year was 780,453, while 1,121,983 options expired[137] - The vesting period for most stock options is one-third on each of the first, second, and third anniversaries of the grant date[140] - The total number of stock options granted to directors and their associates in 2023 was 281,000, with 276,000 granted to Lui Wai Ling on December 29, 2023[139] - The total number of stock options held by directors and their associates as of December 31, 2023, was 1,440,780[139] - 11,194,000 share options were granted on December 29, 2023, with an expected stock return standard deviation of 40.0% to 41.1% and an expected duration of 3.5 to 4.5 years[141] - The closing price of the company's shares on December 28, 2023, was HK$43.75, and the share options granted on December 29, 2023, had no performance targets or clawback mechanisms[142] - A total of 3,036,900 share awards were granted under the 2023 Share Award Plan, which was adopted on May 22, 2023, and will be effective for ten years[143] - The 2021 Share Award Plan was suspended on May