智通财经网·2025-08-12 09:40Core Viewpoint - UBS reports that Galaxy Entertainment (00027) declared an interim dividend of HKD 0.7 per share, exceeding market expectations with a payout ratio of approximately 58%, compared to the expected 50%, which UBS views as a positive surprise, maintaining a "Buy" rating with a target price of HKD 43.9 [1] Financial Performance - Galaxy Entertainment's adjusted EBITDA for Q2 increased by 12% year-on-year to HKD 3.6 billion; when adjusting for VIP room win rate factors, EBITDA grew approximately 7% quarter-on-quarter to HKD 3.2 billion [1] - Despite an increase in market share, the EBITDA margin (excluding construction business) declined by 10 basis points quarter-on-quarter to 29.6% due to rising reinvestment rates [1] Revenue Breakdown - Mass gaming revenue grew approximately 7% quarter-on-quarter, outperforming the industry average growth of 4% [1] - VIP room betting volume increased by approximately 20% quarter-on-quarter, primarily driven by the soft opening of the Capella Hotel in early May [1] Operating Expenses - The company's daily operating expenses rose by 2% quarter-on-quarter, with reinvestment rates increasing by 120 basis points, reflecting higher promotional activities related to concerts and hotel openings in Q2 [1]