Group 1 - The core viewpoint of the article highlights a significant increase in Macau's gaming revenue, with July's gross gaming revenue (GGR) rising by 19.0% year-on-year to 22.1 billion MOP, reaching a post-pandemic high and recovering to 90% of the levels seen in the same period of 2019 [1] - Major gaming stocks in Macau, including Sands China, Galaxy Entertainment, Wynn Macau, and Melco International Development, experienced substantial gains in their stock prices, with increases ranging from 4.34% to 5.45% [1] - HSBC forecasts that the upcoming months will see a continuous influx of visitors due to a series of non-gaming activities, predicting that August's gaming revenue could reach between 21.6 billion to 22.7 billion MOP, reflecting a year-on-year increase of 9% to 15% [1] Group 2 - CITIC Securities notes that a variety of entertainment activities and newly opened or renovated properties are effectively attracting core gaming customers, suggesting potential structural improvements in the industry's win rate [1] - The demand-side changes are identified as a more critical reason for the improvement in gaming data, with Macau's gaming sector being a significant indicator of high-end discretionary spending, benefiting from a marginal improvement in consumption willingness among high-end consumers from mainland China [1] - Under a neutral assumption with no incremental positive or negative factors, CITIC Securities predicts an 8-10% growth in the industry's GGR by 2025 [1]

Core Viewpoint - The Macau gaming sector is experiencing a significant recovery, with July gross gaming revenue (GGR) reaching 22.1 billion MOP, a 19% year-on-year increase, marking the highest level since the pandemic and recovering to 90% of the 2019 levels [1] Group 1: Market Performance - Sands China (01928) shares rose by 5.45% to 21.28 HKD [1] - Galaxy Entertainment (00027) shares increased by 5.44% to 42.26 HKD [1] - Wynn Macau (01128) shares climbed by 4.51% to 6.95 HKD [1] - Melco International Development (00200) shares grew by 4.34% to 5.05 HKD [1] Group 2: Future Projections - HSBC forecasts that the upcoming months will see a continuation of non-gaming activities attracting visitors, with August GGR expected to reach between 21.6 billion to 22.7 billion MOP, representing a year-on-year increase of 9% to 15% [1] - Citic Securities notes that the recovery in the gaming sector is primarily driven by changes in demand, with a projected GGR growth of 8-10% by 2025 under a neutral assumption [1]

Group 1 - The Hong Kong gaming stocks have seen a rise, with notable increases in shares such as Melco Resorts up 5%, Galaxy Entertainment up 1.37%, and Wynn Macau up 3.57% [1] - Multiple institutions have released reports expressing optimism about the gaming industry, with Morgan Stanley predicting a continuous increase in Macau's gaming revenue from 2025 to 2027 [1] - Since the last upgrade of Macau's gaming industry forecast, Morgan Stanley has revised its predictions for the third time within three months [1] Group 2 - Wynn Macau is set to release its financial report on August 20, with expectations of revenue reaching HKD 7.246 billion for Q2 2025 and an estimated earnings per share of HKD 0.09 [1] - Golden Entertainment plans to hold a board meeting on August 25 to approve its interim results [1] - Amax Holdings is scheduled to hold a board meeting on August 28 to approve its interim results [1]

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment, highlighting the resilience of the gaming industry and the long-term growth potential of the company [6]. Core Insights - Galaxy Entertainment achieved a net revenue of HKD 12 billion in Q2 2025, representing an 8% quarter-on-quarter increase and a 10% year-on-year increase. The adjusted EBITDA was HKD 3.2 billion, with a 7% quarter-on-quarter increase but a 1% year-on-year decline. Key revenue metrics have recovered to 82%, 130%, 138%, and 31% of 2019 levels for total gross revenue, mass market revenue, slot machine revenue, and VIP turnover, respectively [6][8]. - The company has a net cash position of HKD 30.3 billion as of June 30, 2025, and announced an interim dividend of HKD 0.70 per share, with a payout ratio of 58%, up from 50% in 2024 [6][8]. Summary by Sections 1. Overseas Social Services - Galaxy Entertainment's Q2 2025 performance shows a recovery in various revenue streams, with EBITDA returning to 79% of 2019 levels. The Capella Hotel is in trial operation, with full opening expected soon. The Macau Galaxy Phase IV project is progressing, with completion expected in 2027 [6][8]. 2. Overseas Pharmaceuticals - The 2025 medical insurance directory and commercial insurance innovative drug directory preliminary review has been published, with 534 out of 718 submissions passing the initial review. The new directory includes several CAR-T products and other innovative drugs [10][12]. 3. Domestic Pharmaceutical Companies - Crystal Holdings expects a revenue of at least HKD 500 million in H1 2025, a year-on-year increase of approximately 387%. In contrast, Jinxin Reproductive expects a net loss of no more than HKD 1.09 billion due to asset impairments [11][12]. 4. Overseas Pharmaceutical Company Updates - Insmed's DPP-1 inhibitor, BRINSUPRI, has received FDA approval for treating non-cystic fibrosis bronchiectasis. Novartis's BAFF-R monoclonal antibody has met primary endpoints in two Phase III studies for treating active Sjögren's syndrome [13][14]. 5. Investment Recommendations - The report suggests focusing on innovative drugs and pharmaceutical companies with strong clinical pipelines, including companies like BeiGene, Innovent Biologics, and others [15]. 6. Market Performance - The Hang Seng Healthcare Index rose by 3.50%, outperforming the Hang Seng Index by 1.75 percentage points, indicating a positive market sentiment towards healthcare stocks [8].

Core Viewpoint - Galaxy Entertainment reported a mixed performance in 2Q25, with net revenue growth but lower-than-expected EBITDA, leading to revised earnings forecasts and a lowered target price while maintaining a Buy rating [1][4]. Financial Performance - 2Q25 net revenue reached HK$12.0 billion, reflecting an 8% quarter-over-quarter increase and a 10% year-over-year increase [1]. - Normalized adjusted EBITDA was HK$3.2 billion, showing a 7% increase QoQ but a 1% decrease YoY, attributed to a lower mass market hold rate [1]. - Total gross gaming revenue, mass market revenue, slot machine revenue, and VIP rolling chip volume recovered to 82%, 130%, 138%, and 31% of 2Q19 levels, respectively [2]. - EBITDA recovery was at 79% of the 2019 level [2]. Dividend and Cash Position - As of June 30, 2025, the company's net cash stood at HK$30.3 billion [4]. - The interim dividend is set at HK$0.70 per share, with a payout ratio increased to 58% from 50% in 2024 [4]. New Developments - The Capella Hotel, a 95-all-suite project, has been in trial operation since May, with full opening expected soon [3]. - Construction of Phase 4 of Galaxy Macau is progressing, with completion scheduled for 2027, featuring high-end hotel brands, a theater with approximately 5,000 seats, green gardens, a water resort deck, and a casino [3]. Investment Outlook - The target price has been revised down from HK$55 to HK$50, indicating a 24% upside potential, while the Buy rating is maintained due to the resilience of the gaming business and long-term growth potential [1][4].

Core Viewpoint - Galaxy Entertainment's Q2 2025 financial results show strong recovery in gaming operations, driven by the concert economy, but stock performance was muted due to profit-taking and operational pressures at the StarWorld Hotel [1][2]. Group 1: Financial Performance - Q2 2025 gaming gross gaming revenue (GGR) reached HKD 12 billion, up 16% year-on-year and 10% quarter-on-quarter, recovering to 82% of Q2 2019 levels [1]. - VIP gaming revenue was HKD 2.4 billion, up 73% year-on-year and 22% quarter-on-quarter, recovering to 33% of Q2 2019 levels [1]. - Mass gaming revenue was HKD 8.8 billion, up 6% year-on-year and 7% quarter-on-quarter, recovering to 130% of Q2 2019 levels [1]. - Slot machine revenue was HKD 800 million, up 19% year-on-year and 8% quarter-on-quarter, recovering to 139% of Q2 2019 levels [1]. - Adjusted EBITDA for Q2 2025 was HKD 3.6 billion, up 12% year-on-year and 8% quarter-on-quarter, recovering to 82% of Q2 2019 levels [1]. Group 2: Entertainment and Customer Traffic - In the first half of 2025, Galaxy hosted 190 entertainment, sports, and exhibition events, resulting in a 65% year-on-year increase in customer traffic [2]. - Notable events included the World Table Tennis Championships and concerts by major artists, leading to a peak daily visitor count of 123,000 [2]. - The company is advancing the upgrade of the StarWorld Hotel and the construction of Phase IV in Cotai, which will feature a theater, water park, and family-friendly facilities, expected to open in 2027 [2]. Group 3: Future Outlook and Valuation - The entertainment momentum is expected to continue into the second half of 2025, with various events planned that could enhance customer traffic across the Cotai area [3]. - The target price for Galaxy has been raised to HKD 49.5, reflecting a valuation premium due to its strong market position and diversified non-gaming offerings [3]. - GGR forecasts for 2025-2027 have been increased by 1.6%, 5.6%, and 2.7% to HKD 459 billion, HKD 529 billion, and HKD 568 billion respectively [3].

Core Viewpoint - Galaxy Entertainment's 2Q25 performance met market expectations, with net revenue of HKD 12.044 billion, a year-on-year increase of 10% and a quarter-on-quarter increase of 8%, recovering to 91% of 2Q19 levels [1] Financial Performance - Adjusted EBITDA for 2Q25 was HKD 3.569 billion, up 12% year-on-year and 8% quarter-on-quarter, aligning closely with Bloomberg's expectation of HKD 3.540 billion [1] - The company announced an interim dividend of HKD 0.70 per share, corresponding to a payout ratio of approximately 60% [1] Growth Drivers - The strong performance was attributed to the opening of the Capella hotel, which increased market share, and entertainment activities that boosted property visitation [1] - Cost control measures helped maintain stable daily operating costs [1] Management Insights - The management expects capital expenditure for 2025 to be HKD 7 billion, with HKD 3 billion spent in the first half of 2025 [1] - The company plans to continue hosting large concerts and entertainment events in Macau, recognizing the sustainability and return potential of integrated resorts [1] Market Positioning - The high-end gaming segment continues to outperform the regular gaming segment, driven by the opening of Capella [1] - The management anticipates that the StarWorld Hotel will benefit from the demand for satellite casinos, which are expected to close by the end of 2025 [1] Investment Outlook - Due to the better-than-expected performance of Capella, the adjusted EBITDA forecasts for 2025 and 2026 have been raised by 5% and 3% to HKD 14.524 billion and HKD 15.330 billion, respectively [2] - The target price has been increased by 6% to HKD 44.80, reflecting an 11% upside potential based on a 10x EV/adjusted EBITDA for 2025 [2]

Core Viewpoint - The company reported strong financial performance for Q2 2025, with significant year-on-year and quarter-on-quarter growth in net revenue and adjusted EBITDA, driven primarily by high-end gaming activities [1][2][4] Financial Performance - Net revenue for the company increased by 10.3% year-on-year and 7.5% quarter-on-quarter to HKD 12.04 billion, recovering to 91.4% of the same period in 2019 [1] - Adjusted EBITDA rose by 12.4% year-on-year and 8.3% quarter-on-quarter to HKD 3.57 billion, recovering to 82.4% of the same period in 2019, with an EBITDA margin of 29.6% [1] - The company announced an interim dividend of HKD 0.7 per share, with a payout ratio increased to 59%, marking it as the first in the industry to raise dividends [1] Segment Performance - "Galaxy Macau" and StarWorld Hotel reported net revenues of HKD 10 billion and HKD 1.17 billion respectively, with year-on-year growth of 16% and a decline of 11.5%, while quarter-on-quarter changes were 9% and a decrease of 5.7% [2] - Adjusted EBITDA for "Galaxy Macau" and StarWorld Hotel was HKD 3.33 billion and HKD 0.30 billion respectively, with year-on-year growth of 19.5% and a decline of 22.3%, and quarter-on-quarter changes of 10.2% and a decrease of 13.4% [2] - Hotel occupancy rates for "Galaxy Macau" and StarWorld Hotel were reported at 98% and 100% respectively [2] Development Projects - The company has commenced trial operations for its new hotel brand, Capella, which features approximately 95 luxury villas and suites, aiming to attract high-quality clientele [3] - Ongoing construction for the fourth phase of "Galaxy Macau" is expected to be completed by 2027, covering an area of approximately 600,000 square meters and introducing several high-end hotel brands [3] - The total capital expenditure budget for the year is set at HKD 7 billion, with HKD 1.5 billion already invested during the period [3] Market Dynamics - Large concerts and performances are contributing to overall revenue growth, while competition within the industry remains intense but manageable [4] - Retail sales remained stable, with rental income increasing by 1%, and future retail growth is expected to be steady [4] - The company is focusing on enhancing non-gaming facilities to cater to mid-market strategies, particularly at StarWorld Hotel [4] Investment Outlook - The company maintains a buy rating with a target price of HKD 49.81, reflecting confidence in its long-term growth prospects due to strong financials, robust management, and ongoing development projects [4]

Group 1: Tencent Holdings - Company reported a 14.5% year-on-year revenue growth to 184.5 billion yuan in Q2 2025, with Non-IFRS net profit increasing by 10% to 63.05 billion yuan [1] - AI applications are accelerating in advertising, gaming, and cloud services, with video account advertising revenue growing by 50% and overseas gaming revenue increasing by 35% [1] - Capital expenditure is primarily focused on AI infrastructure, indicating significant potential for efficiency improvements in the future [1] Group 2: Huahong Semiconductor - Company is expected to benefit from short-term price recovery and full capacity utilization, with a strong competitive position in specialty foundry services [1] - Projected net profits for 2025-2027 are 90 million, 152 million, and 202 million USD respectively, with current stock price corresponding to PB ratios of 1.56, 1.52, and 1.48 [1] Group 3: Hong Kong Exchanges and Clearing - As of July 2023, the company's PE ratio is 38.24x, positioned at the 58th percentile historically since 2016, suggesting attractive valuation [1] - Anticipated increase in market liquidity due to ongoing connectivity policies, which may enhance overall market activity and valuation [1] Group 4: 361 Degrees - Company reported an 11% year-on-year revenue growth to 5.7 billion yuan in H1 2025, with a slight increase in gross margin to 41.5% [2] - Significant improvement in operating cash flow to 520 million yuan, attributed to better inventory management and aging structure [2] - Strong performance in footwear and children's clothing segments, with steady growth in e-commerce channels [2] Group 5: Hongteng Precision - Company experienced a 9% year-on-year revenue growth in Q2 2025, with net profit increasing by 13%, driven by rapid growth in cloud computing/AI server business (+28% YoY) [3] - Despite challenges in the smartphone sector, the company is strategically expanding into AI servers, automotive cables, and new consumer electronics projects [3] - Current valuation is considered attractive, with a target price raised to 4.96 HKD [3] Group 6: Kingdee International - Company reported a 22.1% year-on-year growth in cloud subscription revenue, accounting for 52.8% of total revenue in H1 2025 [5] - Significant improvement in cash flow and reduction in operating losses, with AI contract amounts exceeding 150 million yuan [5] - Positive outlook on AI commercialization and global expansion efforts [5] Group 7: Reading Group - Company reported a 23.9% year-on-year decline in total revenue to 3.191 billion yuan in H1 2025, with Non-IFRS net profit of 508 million yuan [6] - Rapid growth in IP derivative business, with GMV reaching 480 million yuan, nearing the total for the entire year of 2024 [6] - AI technology is enhancing creative, visualization, and translation processes, improving efficiency and reducing costs [6] Group 8: Galaxy Entertainment - Company reported a 10% year-on-year increase in total revenue to 11.2 billion HKD in Q2 2025, with adjusted EBITDA growing by 12% to 3.6 billion HKD [7] - Strong recovery in gaming business with a market share of 20.5%, supported by the opening of high-end hotel Capella [7] - Anticipated growth driven by a rich project pipeline, with Galaxy Phase IV expected to be completed by 2027 [7] Group 9: Galaxy Entertainment (Alternative Report) - Company reported a 10.3% year-on-year increase in net revenue to 12.04 billion HKD in Q2 2025, with adjusted EBITDA rising by 12.4% to 3.57 billion HKD [7] - VIP business saw a significant increase of 73.5%, with market share reaching 20.2%, up 0.7 percentage points from Q1 2025 [7] - Continued success in high-end projects, with Capella hotel performing exceptionally well [7]

Core Viewpoint - Macquarie's research report indicates that Galaxy Entertainment's net income for the second quarter increased by 10% year-on-year and 8% quarter-on-quarter, with gaming revenue rising by 16% year-on-year and 10% quarter-on-quarter, slightly below the firm's forecast by 1% [1] Financial Performance - Adjusted EBITDA increased by 12% year-on-year and 8% quarter-on-quarter, exceeding the firm's forecast by 2% [1] - The company declared an interim dividend of HKD 0.7, with a payout ratio of 58%, up from 50% in the same period last year, surpassing market expectations [1] Cash Flow and Dividend Outlook - The firm believes that Galaxy Entertainment has strong free cash flow and net cash accumulation capabilities, allowing it to maintain the current dividend payout ratio [1] - The expected payout ratio for the company in 2023 is 60%, translating to a cash dividend yield of 3.5% [1] Future Earnings Projections - Due to lower expectations for non-gaming revenue, the firm has slightly reduced its adjusted EBITDA forecasts for 2025 and 2026 by 0.1% and 0.5%, respectively, while increasing the 2027 forecast by 0.6% [1] - The target price for Galaxy Entertainment has been raised from HKD 53.6 to HKD 55.6, maintaining an "outperform" rating [1]