Company Information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) Galaxy Entertainment Group's Board of Directors comprises a Chairman, Executive Directors, Non-Executive Directors, and Independent Non-Executive Directors, with committees ensuring sound corporate governance - Board members include Chairman Mr. Lui Che Woo, Executive Directors Mr. Francis Lui Yiu Tung, Ms. Jenny Tsang, Ms. Joanna Lui, and several Non-Executive and Independent Non-Executive Directors[9](index=9&type=chunk) - Established Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, with Independent Non-Executive Directors serving as chairmen or key members in each committee[9](index=9&type=chunk) [Company Contact and Listing Information](index=5&type=section&id=Company%20Contact%20and%20Listing%20Information) The company disclosed key corporate information, including its independent auditor, registered office, share registrar, principal bankers, legal advisors, listing code, and investor relations contact details - Independent auditor is PricewaterhouseCoopers[10](index=10&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code **27**[10](index=10&type=chunk) - Investor relations contact details include telephone (852) 3150 1111, fax (852) 3150 1100, and email ir@galaxyentertainment.com[11](index=11&type=chunk) Company Profile [Vision and Operating Philosophy](index=2&type=section&id=Vision%20and%20Operating%20Philosophy) Galaxy Entertainment Group's vision is to become Asia's leading gaming and entertainment enterprise, achieving this through its operating philosophy - Vision: To be Asia's leading gaming and entertainment enterprise[3](index=3&type=chunk)[5](index=5&type=chunk) - Operating philosophy includes: deep understanding of local market, professional experience, clear positioning, and demand-driven strategy[4](index=4&type=chunk)[6](index=6&type=chunk) [Core Business and Properties](index=6&type=section&id=Core%20Business%20and%20Properties) The Group primarily develops and operates integrated resorts, retail, dining, hotel, and gaming facilities in Macau, with three flagship projects: "Galaxy Macau™", StarWorld Hotel, and "Broadway Macau™" - The Group is a world-leading resort, hotel, and gaming enterprise, primarily operating integrated resorts in Macau[14](index=14&type=chunk) - "Galaxy Macau™" is one of the world's largest integrated resorts, spanning **1.4 million square meters**, offering approximately **4,700 rooms, suites, and villas**, along with diverse retail, dining, entertainment, leisure, and MICE facilities[14](index=14&type=chunk)[17](index=17&type=chunk)[20](index=20&type=chunk) - StarWorld Hotel, opened in **2006**, is the Group's first five-star hotel, located in the heart of Macau Peninsula, featuring over **500 luxurious rooms and suites**[18](index=18&type=chunk)[21](index=21&type=chunk) - "Broadway Macau™", opened in **2015**, is connected to "Galaxy Macau™" via a sky bridge, offering approximately **310 rooms and suites**, and features the **2,500-seat** "Broadway Theatre" and a variety of local delicacies[26](index=26&type=chunk) [Future Development Opportunities](index=8&type=section&id=Future%20Development%20Opportunities) The Group is actively advancing several future development projects, including the upcoming full opening of Capella at Galaxy Macau, the Cotai Phase 4 expansion plan, and continuously exploring development opportunities in the Greater Bay Area and overseas markets - Capella at Galaxy Macau provided an exclusive preview in **May 2025**, with a full public opening expected in the coming months, offering approximately **100 ultra-luxury suites** and Capella Sky Villas[23](index=23&type=chunk) - Cotai Phase 4 plan will expand the footprint by **600,000 square meters**, including multiple high-end hotel brands, a theater with approximately **5,000 seats**, diverse dining, retail, non-gaming facilities, gardens, water play zones, and a casino, bringing the total hotel room and suite supply to approximately **7,000** upon completion[24](index=24&type=chunk) - The Group will continue to explore development opportunities in the Greater Bay Area and overseas, including a strategic investment in Société des Bains de Mer et du Cercle des Étrangers à Monaco, and is committed to youth education development in Macau and mainland China[25](index=25&type=chunk) Financial and Operational Highlights [Group Performance](index=9&type=section&id=Group%20Performance) In the first half of 2025, the Group achieved robust growth in both net revenue and adjusted EBITDA, with a significant increase in profit attributable to shareholders, maintaining a highly liquid balance sheet, and declaring an interim dividend Group's Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 23,200 | 21,470 | +8 | | Adjusted EBITDA | 6,900 | 6,011 | +14 | | Profit Attributable to Shareholders | 5,200 | 4,387 | +19 | | Cash and Liquid Investments (as of June 30) | 30,700 | 28,968 | +6 | | Net Cash (as of June 30) | 30,300 | 25,131 | +20.5 | | Interim Dividend (HKD per share) | 0.70 | 0.50 | +40 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 737 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 6.1 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) ["Galaxy Macau™" Performance](index=9&type=section&id=Galaxy%20Macau%E2%84%A2%20Performance) "Galaxy Macau™" achieved strong growth in H1 2025, with significant increases in both net revenue and adjusted EBITDA, maintaining high hotel occupancy, and growing non-gaming revenue "Galaxy Macau™" Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 19,100 | 16,958 | +13 | | Adjusted EBITDA | 6,300 | 5,395 | +18 | | Average Hotel Occupancy Rate | 98% | - | - | | Non-Gaming Revenue | 2,800 | 2,697 | +4 | - In H1 2025, the gaming business experienced a higher-than-normal net win rate, increasing adjusted EBITDA by approximately **HKD 755 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 5.6 billion**, a **3% year-on-year increase**[32](index=32&type=chunk) [StarWorld Hotel Performance](index=9&type=section&id=StarWorld%20Hotel%20Performance) StarWorld Hotel's net revenue and adjusted EBITDA both decreased in H1 2025, primarily due to a lower-than-normal gaming net win rate, though hotel occupancy remained at 100% StarWorld Hotel Key Financial Data for H1 2025 | Metric | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 2,400 | 2,692 | -10 | | Adjusted EBITDA | 653 | 825 | -21 | | Hotel Occupancy Rate | 100% | - | - | | Non-Gaming Revenue | 248 | 267 | -7 | - In H1 2025, the gaming business experienced a lower-than-normal net win rate, decreasing adjusted EBITDA by approximately **HKD 18 million**; after normalizing the net win rate, adjusted EBITDA was **HKD 671 million**, a **14% year-on-year decrease**[32](index=32&type=chunk) ["Broadway Macau™", City Clubs, and Construction Materials Business Performance](index=9&type=section&id=Broadway%20Macau%E2%84%A2%2C%20City%20Clubs%2C%20and%20Construction%20Materials%20Business%20Performance) Adjusted EBITDA for "Broadway Macau™" and City Clubs both decreased, while the construction materials business saw growth in adjusted EBITDA, benefiting from improved sales in mainland China Adjusted EBITDA for Other Businesses in H1 2025 | Business | 2025 H1 (HKD Million) | 2024 H1 (HKD Million) | | :--- | :--- | :--- | | "Broadway Macau™" | 6 | 12 | | City Clubs | 3 | 9 | | Construction Materials Business | 423 | 365 | - Construction materials business adjusted EBITDA increased by **16% year-on-year**, primarily benefiting from improved sales in mainland China[32](index=32&type=chunk) [Recent Developments](index=10&type=section&id=Recent%20Developments) The Group continues to advance multiple development projects, including the exclusive preview of Capella at Galaxy Macau, enhancement of Cotai Phase 3 facilities, focus on non-gaming development for Cotai Phase 4, and exploration of overseas market opportunities such as Thailand - Capella at Galaxy Macau provided an exclusive private preview in May[33](index=33&type=chunk) - Cotai Phase 3 continues to enhance the performance of Galaxy International Convention Center, Galaxy Arena, Raffles at Galaxy Macau, and Andaz Macau[33](index=33&type=chunk) - Cotai Phase 4 project focuses on non-gaming businesses, primarily targeting entertainment and family-friendly facilities, in addition to a casino[33](index=33&type=chunk) - The Group continues to explore development opportunities in overseas markets, including Thailand[33](index=33&type=chunk

Group 1 - UBS report indicates that the upcoming Federal Reserve interest rate cuts will benefit Hong Kong real estate but negatively impact Hong Kong banks [1] - The bank maintains a cautious stance on bank stocks, currently underweighting them, and has placed Hang Seng Bank on its least favored list [1] - UBS continues to favor Hong Kong property developers and has a positive outlook on Wynn Macau and Galaxy Entertainment due to improved demand from high-end clientele and attractive dividend yields [1] Group 2 - In the first half of the year, approximately 98% of the 49 Hong Kong-listed companies covered by UBS have reported earnings, with an overall net profit decline of 7% year-on-year despite a 4% increase in revenue [2] - More than half of the companies met expectations, but those falling short slightly outnumbered those exceeding expectations; the financial sector performed well due to favorable market conditions and better-than-expected non-interest income [2] - The upcoming interest rate cuts are expected to reverse the outperformance of bank stocks, which have outperformed Hong Kong real estate stocks by 80% since the HIBOR uptrend began in December 2021 [2]

Group 1 - The upcoming interest rate cuts by the Federal Reserve are expected to benefit Hong Kong real estate while negatively impacting Hong Kong banks [1] - UBS maintains a cautious stance on banks, currently underweighting bank stocks and listing Hang Seng Bank as one of the least favored [1] - The firm continues to favor Hong Kong property developers as the interest rate cut cycle approaches, predicting a reversal of the trend where banks have outperformed property developers since 2022 [1] Group 2 - In the first half of the year, 98% of the 49 Hong Kong-listed companies covered by UBS reported a net profit decline of 7% year-on-year, despite a 4% increase in revenue [2] - The financial sector performed well, benefiting from favorable market conditions and better-than-expected non-interest income, while sectors like Macau gaming and airlines faced more companies falling short of expectations [2] - UBS has included Wynn Macau and Galaxy Entertainment in its top recommendations due to improved demand from high-end customers and sustainable revenue momentum [2]

Core Viewpoint - Morgan Stanley has updated its forecasts for Galaxy Entertainment (00027) based on the company's mid-term performance, increasing the expected dividend payout ratio for 2025 to 2027 from 50% to 60%, resulting in a 19% increase in the predicted dividend per share [1] Financial Projections - EBITDA forecasts for Galaxy Entertainment for 2025 to 2027 have been reduced by 1% due to higher expected operating expenses [1] - Earnings per share forecasts have been adjusted from HKD 2.39, HKD 2.58, and HKD 2.73 to HKD 2.36, HKD 2.56, and HKD 2.72 respectively for the same period [1] - The target price for Galaxy Entertainment has been raised from HKD 40 to HKD 44 [1] Market Position and Risks - The opening of the Capella Hotel is expected to help Galaxy Entertainment increase its market share [1] - The company has been given a "in line with the market" rating, but there are warnings that if competitors resume dividends and the company's market share continues to weaken, some potential premiums may reverse [1]

Core Viewpoint - Morgan Stanley has updated its forecasts for Galaxy Entertainment (00027) based on the company's mid-term performance, increasing the dividend payout ratio from 50% to 60% for 2025 to 2027, resulting in a 19% increase in the predicted dividend per share [1] Financial Projections - EBITDA forecasts for Galaxy Entertainment for 2025 to 2027 have been reduced by 1% due to higher expected operating expenses [1] - Earnings per share forecasts have been adjusted from HKD 2.39, HKD 2.58, and HKD 2.73 to HKD 2.36, HKD 2.56, and HKD 2.72 for the respective years [1] - The target price for Galaxy Entertainment has been raised from HKD 40 to HKD 44 [1] Market Position and Risks - The opening of the Capella Hotel is expected to help Galaxy Entertainment increase its market share [1] - Morgan Stanley maintains a "market perform" rating but warns that if competitors resume dividends and the company's market share continues to weaken, some potential premium may reverse [1]

Group 1 - Morgan Stanley has raised Galaxy Entertainment's dividend payout ratio forecast for 2025 to 2027 to 60% and increased the per-share dividend forecast [1] - Despite slight downward adjustments to EBITDA and earnings per share forecasts for 2025 to 2027, the target price for Galaxy Entertainment has been raised to HKD 44 [1] - The opening of the Capella Hotel is expected to help Galaxy Entertainment increase its market share, maintaining a "market perform" rating [1] Group 2 - There is a risk of valuation premium decline if competitors resume dividend payouts and Galaxy Entertainment's market share continues to weaken [1]

Core Viewpoint - Morgan Stanley has updated its forecast for Galaxy Entertainment, raising the dividend payout ratio prediction for 2025 to 2027 from 50% to 60%, with a 19% increase in the per-share dividend forecast [1] Financial Projections - EBITDA forecasts for 2025 to 2027 have been reduced by 1% due to higher operating expense expectations [1] - Earnings per share (EPS) forecasts have been adjusted from HKD 2.39, 2.58, and 2.73 to HKD 2.36, 2.56, and 2.72 for the respective years [1] - The target price for Galaxy Entertainment has been raised from HKD 40 to HKD 44 [1] Market Position and Outlook - The opening of the Capella Hotel is expected to help Galaxy Entertainment increase its market share [1] - Morgan Stanley has assigned a "market perform" rating, but cautions that if competitors resume dividends while Galaxy's market share remains weak, some potential premium may reverse [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 銀河娛樂集團有限公司 | | | 呈交日期: | 2025年9月3日 | | | I. 法定/註冊股本變動 不適用 | | | | 備註： | | | | 銀河娛樂集團有限公司並無法定股本，及其股本並無股份面值。 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00027 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 4,374,894,550 ...

Group 1 - The core viewpoint of the report indicates that Macau's gaming revenue (GGR) reached a post-pandemic high in August, growing 12% year-on-year to MOP 22.2 billion, aligning with market expectations [1] - Compared to pre-pandemic levels, August's gaming revenue has recovered to 91% of the figures [1] - The report suggests that the performance in August reflects a turning point for the Macau gaming industry, driven by wealth effects and ample liquidity in the Hong Kong market [1] Group 2 - The company anticipates that the strong momentum will continue for some time, projecting a year-on-year growth of 15% in gaming revenue and 21% in EBITDA for the first quarter of next year [1] - In terms of stock recommendations, the company prefers Galaxy Entertainment and MGM China, with target prices set at HKD 54 and HKD 23 respectively [1] - Sands China is the second choice with a target price of HKD 24.5, all rated as "buy," while Melco International Development is rated as "sell" with a target price of HKD 4.5 [1]

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].