Zhi Tong Cai Jing·2026-02-27 03:55Core Viewpoint - The report from Citi highlights that Galaxy Entertainment (00027) experienced a significant year-on-year increase of 33% in adjusted EBITDA for Q4 of FY2025, reaching HKD 4.3 billion, surpassing both Citi's and market expectations by 3% [1] Financial Performance - Adjusted EBITDA for Q4 FY2025 rose to HKD 4.3 billion, marking a 33% increase year-on-year [1] - The final dividend increased by 60% to HKD 0.8 per share, with the annual payout ratio expanding by 1,100 basis points to 61% [1] Market Position - Citi maintains confidence in Galaxy Entertainment's competitive position in the Macau market, believing it can effectively defend its market share [1] - The company is expected to have further room for dividend increases due to anticipated capital expenditures reaching a peak this year [1] Profitability Metrics - Despite a higher-than-usual win rate in the VIP segment contributing HKD 731 million to EBITDA, the adjusted profit margin remained stable at 27.2% due to increased competitive pressure [1] Investment Rating - Citi continues to rate Galaxy Entertainment as "Outperform" and has set a target price of HKD 49.5, considering the company a preferred stock in the industry [1]