First Shanghai Securities·2026-03-04 11:33Company Performance - Galaxy Entertainment Group reported a 22.5% year-on-year increase in net revenue to HKD 13.83 billion, achieving 107% of the 2019 level[7] - VIP gaming revenue surged by 182.6% year-on-year, reaching 48.1% of the 2019 level, while mass gaming revenue increased by 15.0%[7] - Adjusted EBITDA rose by 32.7% year-on-year to HKD 4.3 billion, with an EBITDA margin of 31.1%, up 2.4% year-on-year[7] Dividend and Financial Health - The dividend payout ratio increased to 61%, reflecting a stable financial position with net cash holdings of HKD 35 billion[10] - The company has raised its dividend payout ratio three times over the past three years, indicating a commitment to shareholder returns[10] Future Outlook - The target price for Galaxy Entertainment is set at HKD 51.05, representing a potential upside of 29.63% from the current price of HKD 39.38[5] - The ongoing development of the Galaxy Macau Phase 4 project is expected to enhance market share and revenue growth, with completion anticipated in 2027[9] Risks - Key risks include potential economic downturns, policy changes, and increased competition from other operators[12]