2026-02-28 09:40Investment Rating - The report maintains a "Outperform" rating for Galaxy Entertainment [1] Core Insights - For the fourth quarter of fiscal year 2025, adjusted EBITDA for Galaxy Entertainment surged 33% year-on-year to HKD 4.3 billion, exceeding both the firm's and market forecasts by 3% [1] - The final dividend increased by 60% to HKD 0.8, with the full-year payout ratio expanding by 1,100 basis points to 61% [1] - The firm believes that Galaxy Entertainment remains competitive in the Macau market and can effectively defend its market share, with further potential for dividend increases [1] Financial Performance - The report highlights that the high win rate in the VIP gaming segment positively impacted EBITDA by HKD 731 million, while the adjusted profit margin remained stable at 27.2% despite increasing competitive pressures [1] - It is anticipated that capital expenditures for Galaxy Entertainment will peak this year, allowing for sustainable expansion of the dividend payout ratio [1]