Zhi Tong Cai Jing·2026-03-02 02:30Core Viewpoint - The report from Daiwa Capital Markets maintains a "Buy" rating for Galaxy Entertainment (00027) and raises the target price by 4% to HKD 49, reflecting strong performance in the gaming sector [1] Group 1: Financial Performance - In Q4 of the previous year, Galaxy Entertainment's gaming revenue increased by 14% quarter-on-quarter, outperforming the industry growth rate of approximately 6% [1] - The gaming revenue has recovered to about 97% of the levels seen in 2019, indicating a strong rebound in performance [1] - The market share for Galaxy Entertainment's gaming revenue increased by 1.6 percentage points to 21.8% quarter-on-quarter [1] Group 2: Profitability and EBITDA - Despite strong growth in gaming revenue and market share, the adjusted normalized EBITDA margin decreased by 1.6 percentage points quarter-on-quarter, which is a disappointing aspect of the performance [1] - Daiwa Capital Markets has adjusted its EBITDA forecasts for Galaxy Entertainment for 2026 and 2027 upwards by 1% each [1] Group 3: Future Outlook - Data from the recent Lunar New Year holiday shows encouraging results, outperforming both last year's Lunar New Year and the October Golden Week [1] - Management anticipates maintaining a positive momentum through March and the first quarter overall, and they are committed to continuously reviewing the dividend policy [1]