Ge Long Hui·2025-08-12 08:56Core Viewpoint - UBS reported that Galaxy Entertainment's adjusted EBITDA for Q2 increased by 12% year-on-year to HKD 3.6 billion, indicating strong operational performance despite rising reinvestment rates [1] Financial Performance - Adjusted EBITDA, excluding VIP room win rate factors, grew approximately 7% quarter-on-quarter to HKD 3.2 billion [1] - EBITDA margin (excluding construction business) decreased by 10 basis points quarter-on-quarter to 29.6% due to increased reinvestment rates [1] - Daily operating expenses increased by 2% quarter-on-quarter, reflecting higher promotional activities related to concerts and hotel openings [1] Dividend Announcement - Galaxy Entertainment declared an interim dividend of HKD 0.7 per share, exceeding market expectations [1] - The payout ratio reached approximately 58%, compared to the market expectation of 50%, which is viewed as a positive surprise [1] Investment Rating - UBS maintains a "Buy" rating for Galaxy Entertainment with a target price of HKD 43.9 [1]