Ge Long Hui·2025-12-13 05:57Core Viewpoint - The overall recovery pace of the industry is accelerating, with growth resilience expected to continue until 2026. Galaxy Entertainment has three key highlights that provide both growth and defensive characteristics: low long-term debt ratio, sufficient cash reserves, and a project pipeline supporting future performance growth [1][5]. Group 1: Financial Performance - Galaxy Entertainment's gaming gross revenue (GGR) is projected to reach HKD 41.15 billion in 2024, representing a year-on-year increase of 29.7%, recovering to 69.3% of 2019 levels [2]. - Adjusted property EBITDA is expected to be HKD 12.19 billion in 2024, reflecting a year-on-year growth of 22.4%, returning to 74.0% of 2019 levels, with an adjusted EBITDA margin of 28.1% [2][5]. - The company anticipates net income for 2025-2027 to be HKD 48.297 billion, HKD 52.600 billion, and HKD 56.837 billion, respectively, with year-on-year growth rates of 11.2%, 8.9%, and 8.1% [5]. Group 2: Market Position and Strategy - Galaxy Entertainment ranks third in table share but holds the second position in gaming gross revenue share due to its operational excellence [1]. - The company is shifting focus from VIP business to high-end mass gaming, which is expected to drive future revenue growth, particularly in the high-end mass segment [2][4]. - The upcoming Galaxy Phase IV project is expected to add 1,500 hotel rooms, further enhancing the company's competitive edge [1][2]. Group 3: Industry Trends - The overall GGR in Macau is recovering, with a cumulative GGR of MOP 226.515 billion from January to November 2025, marking an 8.6% year-on-year increase and recovering to 84.0% of 2019 levels [3]. - The high-end mass gaming segment is leading the growth in gaming revenue, surpassing pre-pandemic levels, with intense competition among operators [4]. - The closure of satellite casinos by the end of the year will release 5.1% of market share, potentially benefiting other properties in the Macau Peninsula [3].