Investment Rating - The report suggests a focus on cloud vendors and companies with exceeding expectations in the current market environment [3]. Core Insights - The report highlights a divergence in market performance, with consumer companies facing pressure while AI technology companies continue to show mixed results. Concerns about AI valuation bubbles persist, but leading tech companies like Microsoft, Google, and Meta maintain strong cash flows, suggesting a stable outlook for cloud vendors [3]. - The gaming demand remains robust, although there is a short-term lack of new game releases. Attention is drawn to the progress of key game tests and launches, which could drive revenue growth for related companies [3]. - The report emphasizes the importance of monitoring quarterly reports from major Chinese companies like Tencent, JD, Baidu, and Alibaba, as well as the ongoing value in sectors like PDD and the gaming industry [3]. Summary by Sections 1.1 Consumer & Internet - **Education**: The education index fell by 3.59%, with notable performance differences among companies. The implementation of a spring and autumn break system in Sichuan is expected to impact the sector positively [11][18]. - **Luxury & Gaming**: The luxury goods and gaming sectors are closely tied to macroeconomic conditions. Recent Q3 earnings from major gaming companies exceeded expectations, benefiting from a longer holiday schedule in 2026 [19][24]. - **Coffee & Tea**: The coffee sector remains vibrant, while the tea sector faces challenges due to reduced delivery platform subsidies and seasonal competition [3][27]. - **E-commerce**: The e-commerce sector is under pressure, with a lackluster performance during the Double Eleven shopping festival [3][35]. 1.2 Platform & Technology - **Streaming Platforms**: The streaming sector is driven by domestic demand, with platforms like Spotify reporting better-than-expected earnings [3][42]. - **Virtual Assets & Internet Brokers**: The cryptocurrency market is experiencing volatility, with a significant drop in global market value. However, there are potential buying opportunities following recent corrections [3][43]. - **Automotive Services**: The automotive aftermarket is projected to decline, with a year-over-year decrease of 4% expected by October 2025 [3][61]. 1.3 Media - The media sector is experiencing mixed performance, with streaming services facing challenges but also opportunities for growth through strategic partnerships and content offerings [3][41].

Core Viewpoint - Galaxy Entertainment reported strong financial results for 3Q25, with net revenue and adjusted EBITDA both increasing by 14% year-over-year, aligning with expectations. The company maintains a positive outlook with a target price of HK$50, indicating a 30% upside potential, and continues to hold a Buy rating [1][5]. Financial Performance - The company's rolling chip volume increased by 46% year-over-year, mass gaming revenue rose by 13% year-over-year, and slot revenue grew by 14% year-over-year. Total gross gaming revenue, mass market revenue, slot machine revenue, and VIP rolling chip volume have recovered to 90%, 138%, 125%, and 41% of 3Q19 levels, respectively. EBITDA has recovered to 81% of the 2019 level [2]. New Developments - The majority of Capella at Galaxy Macau and Horizon Plus have opened, with all facilities expected to be fully operational by early next year. The upgrade program for StarWorld is anticipated to be completed by 2026, while the construction of Galaxy Macau Phase 4 is expected to finish in 2027, featuring several high-end hotel brands, a theater with approximately 5,000 seats, green gardens, a water resort deck, and a casino [3]. Non-Gaming Initiatives - In the first nine months of 2025, the company hosted around 260 entertainment, sports, arts and culture, and MICE events, leading to a 41% year-over-year increase in foot traffic at Galaxy Macau. Additionally, the company has established a four-year strategic partnership with the Ultimate Fighting Championship, renewed a three-year strategic partnership with Tencent Music, and renewed a three-year cooperation agreement with Damai Entertainment under Alibaba Group and Macau Pass for event ticketing [4].

Core Viewpoint - Galaxy Entertainment's Q3 2025 performance aligns with market expectations, showing a revenue of HKD 12.163 billion, a 14% year-on-year increase and a 1% quarter-on-quarter increase, recovering to 96% of Q3 2019 levels [1] Financial Performance - Adjusted EBITDA for the company was HKD 3.341 billion, reflecting a 14% year-on-year increase but a 6% quarter-on-quarter decline, recovering to 81% of Q3 2019 levels, closely matching Bloomberg's expectation of HKD 3.321 billion [1] - The increase in operational expenditure and normalization of VIP business win rates are identified as key factors affecting performance [1] Development Trends - Galaxy aims for a total gaming revenue market share of 20-22%, with strong performance noted in October 2025 due to higher VIP business win rates [1] - Management observed an improvement in demand in the last weeks of October 2025, with expectations for a strong finish in Q4 2025 [1] - One-time marketing expenses during the summer led to a 300 basis point decline in profit margins, while average fixed operating costs remained stable compared to Q2 2025 [1] - The company plans to host large concerts and sports events in Macau, having signed partnerships with UFC, Tencent, and Damai for various events and services [1] - Galaxy intends to relocate some gaming tables from Galaxy Macau to the StarWorld Hotel, anticipating demand from existing satellite casino customers after the satellite casino's closure at the end of 2025 [1] - Phase 4 of Galaxy is expected to be completed by 2027, with Broadway potentially serving as future land reserves for redesign or reconstruction for Phase 5 expansion [1] - Despite delays in the legalization of Thai gambling, Galaxy remains interested in investment opportunities in Thailand [1] Earnings Forecast and Valuation - Due to increased operational expenditures, the adjusted EBITDA forecasts for 2025 and 2026 have been revised down by 1% and 3% to HKD 14.031 billion and HKD 14.923 billion, respectively [2] - The current stock price corresponds to 9 times the 2026 EV/Adjusted EBITDA, with a maintained "outperform" rating and a target price of HKD 44.80, indicating a 16% upside potential based on an 11 times 2026 EV/Adjusted EBITDA valuation [2]

Core Viewpoint - UBS reports that Galaxy Entertainment (00027) achieved an EBITDA of approximately HKD 3.3 billion in Q3, representing a year-on-year increase of 14% but a quarter-on-quarter decline of 6% [1] Financial Performance - EBITDA of HKD 3.3 billion aligns with UBS and market expectations, even when adjusting for VIP room win rate impacts [1] - Mass gaming revenue increased by 6% quarter-on-quarter, driven by the normalization of mass table win rates, outperforming the industry’s quarter-on-quarter growth of approximately 2-3% [1] - VIP gaming revenue grew by about 17% quarter-on-quarter; however, due to a win rate of only 3.1%, VIP revenue experienced a quarter-on-quarter decline of 15% from a high base [1] Operational Insights - The operation of the Capella Hotel is gradually stabilizing, leading to increased costs, with average daily operating expenses and reinvestment rates rising by 9% and 110 basis points quarter-on-quarter, respectively [1] - The luck-adjusted EBITDA margin (excluding construction business) remains around 27.5% [1] Investment Rating - UBS maintains a "Buy" rating for Galaxy Entertainment with a target price of HKD 46.9 [1]

Core Viewpoint - UBS reported that Galaxy Entertainment's (00027) Q3 EBITDA was approximately 3.3 billion HKD, representing a year-on-year increase of 14% but a quarter-on-quarter decline of 6% [1] Financial Performance - EBITDA of 3.3 billion HKD aligns with UBS and market expectations, even when adjusting for VIP room win rates [1] - Mass gaming revenue increased by 6% quarter-on-quarter, driven by the normalization of mass table win rates, outperforming the industry growth of approximately 2-3% [1] - VIP gaming revenue grew by about 17% quarter-on-quarter; however, due to a win rate of only 3.1%, VIP revenue saw a quarter-on-quarter decline of 15% from a high base [1] Operational Insights - The operation of the Galaxy Hotel is gradually stabilizing, leading to increased costs, with average daily operating expenses and reinvestment rates rising by 9% and 110 basis points quarter-on-quarter, respectively [1] - The luck-adjusted EBITDA margin (excluding construction business) remains around 27.5% [1] Investment Rating - UBS maintains a "Buy" rating for Galaxy Entertainment with a target price of 46.9 HKD [1]

Core Viewpoint - Galaxy Entertainment (00027) is expected to see a 5% quarter-on-quarter growth in normalized adjusted EBITDA for Q3 2025, despite a reduction of 140 million yuan due to Typhoon Haikui [1] Group 1: Financial Performance - The company reported strong performance in October, driven by robust foot traffic and exceptionally high win rates at VIP gaming tables, with this momentum continuing into November [1] - Management anticipates that Q4 2025 performance will slightly exceed typical seasonal fluctuations, primarily supported by high-end mass market and VIP room business [1] Group 2: Analyst Ratings - The rating for Galaxy Entertainment is maintained at "Buy," with the target price adjusted from 49 HKD to 47 HKD [1]

Core Viewpoint - Galaxy Entertainment (00027) reported a 5% quarter-over-quarter growth in normalized adjusted EBITDA for Q3 2025, despite a reduction of 140 million due to Typhoon Haikui [1] Group 1: Financial Performance - The company achieved impressive results in October, supported by strong customer traffic and exceptionally high win rates at VIP gaming tables [1] - The positive momentum is expected to continue into November [1] Group 2: Future Outlook - Management anticipates that Q4 2025 performance will slightly exceed typical seasonal fluctuations, primarily benefiting from high-end mass market and VIP room operations [1] - The target price has been adjusted from HKD 49 to HKD 47 while maintaining a "Buy" rating [1]

Core Viewpoint - UBS reported that Galaxy Entertainment's EBITDA for the third quarter was approximately HKD 3.3 billion, representing a year-on-year increase of 14% and a quarter-on-quarter decrease of 6%, aligning with the bank's and market expectations [1] Financial Performance - EBITDA, when adjusted for VIP room win rate impact, also recorded HKD 3.3 billion, consistent with expectations [1] - The operating expenses and reinvestment rate increased by 9% and 110 basis points quarter-on-quarter, respectively, due to the gradual ramp-up of operations at the Capella Hotel [1] - The adjusted EBITDA margin (excluding construction business) remained around 27.5% [1] Investment Rating - UBS maintains a "Buy" rating for Galaxy Entertainment with a target price of HKD 46.9 [1]

Group 1 - The US stock market experienced declines on November 7, 2025, with the Dow Jones falling by 0.8%, the S&P 500 down by 1.1%, and the Nasdaq decreasing by 1.9% [3] - The Golden Dragon Index, which reflects the performance of Chinese concept stocks, remained stable with a slight drop of less than 0.1% [3] Group 2 - The Hong Kong and mainland Chinese stock markets showed strong performance, with the A-share market rising for the second consecutive trading day. The Shanghai Composite Index increased by nearly 1% to close at 4,007 points, while the Shenzhen Component Index rose by 1.7% to 13,452 points, with total trading volume exceeding 2 trillion RMB [4] - The Hang Seng Index opened high, gaining 126 points and surpassing the 26,000-point mark, eventually closing up 550 points or 2.12% at 26,485 points. The Tech Index saw an increase of 2.7%, closing at 5,944 points, with total trading volume around 235 billion HKD [4] - Among the constituent stocks, China Hongqiao (01378.HK) performed the best with a nearly 10% increase, while SMIC (00981.HK) saw a rise of over 7.3%. Other tech stocks like Alibaba (09988.HK) and JD.com (09618.HK) also experienced gains of over 4% and 3.3%, respectively [4] - Only four constituent stocks declined, with Shenzhou (02313.HK) dropping nearly 2%, and others like Tingyi (00322.HK), New Oriental (09901.HK), and Galaxy Entertainment (00027.HK) falling by 1.4%, 0.9%, and 0.36% respectively [4] Group 3 - Following the recent surge, the Hang Seng Index stabilized above the 26,000-point level and remained above the 10-day and 20-day moving averages. However, trading volume did not increase, and the index approached resistance near 26,500 points, suggesting that without further positive news, the market may struggle to maintain levels above this point [5]

Group 1 - Goldman Sachs has adjusted Galaxy Entertainment's EBITDA forecast for 2025 to 2027 by 1-2%, raising the target price from HKD 53.2 to HKD 53.7, while maintaining a "Buy" rating, indicating potential upside in Q4 EBITDA [1] - Galaxy Entertainment's Q3 EBITDA decreased by 6% quarter-on-quarter to HKD 3.3 billion, aligning with market expectations, impacted by various factors including reduced contributions from construction business and high VIP win rates [1] - The adjusted EBITDA increased by 7% year-on-year and 5% quarter-on-quarter, with a stable profit margin of 27.4%, as accelerated gaming volume offset additional costs [1] Group 2 - The group's gaming revenue market share in Q3 was stable at 20.3%, slightly down from 20.4% in the previous quarter, with management noting strong gaming revenue momentum continuing into November [1] - Capital expenditures for the period were only HKD 600 million, with a cumulative total of HKD 2.6 billion for the first three quarters, leading to a downward revision of the annual guidance from HKD 7 billion to HKD 3.5 billion [2] - The group hosted approximately 260 events in the first three quarters, resulting in a 41% year-on-year increase in visitor traffic to Galaxy Macau, and plans to assist in hosting the National Games and collaborate with UFC and Tencent Music for various events [2]