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].

GALAXY ENTERTAINMENT GROUP LIMITED 銀河娛樂集團有限公 司 呂耀東先生 ( 副主席 ) 徐應強先生 鄧呂慧瑜女士 非執行董事 張惠彬博士 獨立非執行董事 顏志宏先生 葉樹林博士 黃龍德教授 萬卓祺先生 董事會設立 5 個委員會。下表提供各董事會成員在這些委員會中所擔任的職位。 | | 委員會 | 審核 | 企業管治 | 執行 | 提名 | 薪酬 | | --- | --- | --- | --- | --- | --- | --- | | 董事 | | 委員會 | 委員會 | 董事會 | 委員會 | 委員會 | | 呂耀東先生 | | | C | M | M | M | | 徐應強先生 | | | | M | | | | 鄧呂慧瑜女士 | | | | M | | | | 顏志宏先生 | | C | M | | | | | 葉樹林博士 | | M | | | C | C | | 黃龍德教授 | | M | M | | M | M | | 張惠彬博士 | | M | M | | | | （於香港註冊成立之有限公司） (Stock Code: 27) 董事名單與其角色和職能 銀河娛 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 GALAXY ENTERTAINMENT GROUP LIMITED 銀河娛樂集團有限公司 （於香港註冊成立之有限公司） 銀娛將繼續按照董事會制定的業務策略經營業務。董事會認為呂博士的辭世對本集團 的營運不會做成任何影響。 銀娛將適時委任新主席，並將就該委任刊發公佈。 董事會對呂博士的辭世表示最深切的哀悼，並向他的家屬致以最深切的慰問。 承董事會命 銀河娛樂集團有限公司 公司秘書 冼李美華 （股份代號：27） 呂志和博士辭世 銀河娛樂集團有限公司（「 銀娛 」，連同其附屬公司，統稱「 本集團 」）之董事會 （「 董事會 」）沉痛宣佈，銀娛之主席兼執行董事呂志和博士 （「 呂博士 」）於二零 二四年十一月七日安詳辭世，享年九十五歲。 呂博士是本集團的創辦人，為本集團作出了寶貴的貢獻。他的遠見、卓越的領導能力 和指導成為本集團發展和持續成功的基石。在呂博士的領導下，銀娛於二零零五年成 為首間於香港聯合交易所 ...

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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 GALAXY ENTERTAINMENT GROUP LIMITED 銀河娛樂集團有限公司 （於香港註冊成立之有限公司） （股份代號：27） 截至二零二四年九月三十日止第三季 的若干特定未經審核之主要業務表現指標之公佈 本公佈乃根據香港聯合交易所有限公司證券上市規則（「上市規則」）第 13.09(2)條及證 券及期貨條例（香港法例第 571 章）第XIVA部的內幕消息條文（定義見上市規則）而作 出。 銀河娛樂集團有限公司（「銀娛」或「本公司」）主席的信 今日我很高興向大家報告集團於二零二四年第三季度之財務業績。於二零二四年第三季度 集團淨收益按年上升 11%至 107 億港元，經調整 EBITDA 按年上升 6%至 29 億港元，其中 因淨贏率偏低導致經調整 EBITDA 減少約 1.65 億港元。 最近的國慶黃金周假期，我們很高興見到澳門入境旅客總數達 993,117 人次。這七天期間 每日平均旅客入 ...

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].