Ubs Securities·2026-02-28 09:40Investment Rating - The report assigns a "Buy" rating to Galaxy Entertainment with a target price of HKD 46.9 [1] Core Insights - Galaxy Entertainment's adjusted EBITDA for Q4 last year was approximately HKD 4.3 billion, representing a year-on-year increase of about 33% and a quarter-on-quarter increase of about 29% [1] - After normalizing the net win rate, the EBITDA was around HKD 3.6 billion, showing a year-on-year growth of 9% and a quarter-on-quarter growth of 7%, which met expectations [1] - The total gaming revenue from the mass market increased by approximately 6% quarter-on-quarter, outperforming the industry trend of being roughly flat, partly driven by an increase in the win rate at mass gaming tables [1] - Galaxy Entertainment announced a final dividend of HKD 0.8 per share, exceeding the market expectation of HKD 0.65, bringing the total annual dividend to HKD 1.5 per share, which corresponds to a payout ratio of approximately 61% for the year, compared to an expected 50% for 2024 [1]