GALAXY ENT(00027) 第一上海证券·2024-05-27 12:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 50.97, representing a potential upside of 30.86% from the current stock price of HKD 38.95 [1][2]. Core Insights - The company's Q1 2024 performance met expectations, with net revenue increasing by 49.6% year-on-year to HKD 10.55 billion, recovering to 80.9% of the 2019 level [1]. - The VIP gaming table turnover rose by 78.5% year-on-year, while mass gaming revenue increased by 57.0% year-on-year, although it saw a slight decline of 1.3% quarter-on-quarter due to lower win rates [1]. - The adjusted EBITDA grew by 48.7% year-on-year to HKD 2.84 billion, with an EBITDA margin of 26.9% [1]. - The company holds a strong balance sheet with net cash of HKD 25 billion, the strongest in the industry [1]. Financial Performance Summary - Total net revenue for 2023 was HKD 35.68 billion, with a projected increase to HKD 44.31 billion in 2024, reflecting a year-on-year growth of 24.2% [3][4]. - The EBITDA for 2023 was HKD 9.96 billion, expected to rise to HKD 12.79 billion in 2024, indicating a growth rate of 28.4% [3][4]. - Net profit for 2023 was HKD 6.83 billion, with projections of HKD 10.20 billion for 2024, showing a significant increase of 49.4% [3][4]. - The company’s earnings per share (EPS) is projected to grow from HKD 1.6 in 2023 to HKD 2.3 in 2024 [3][4]. Market Position and Future Developments - The company’s market share has shown signs of recovery in April and May, benefiting from an increase in sales personnel and the introduction of smart gaming tables [1]. - The company plans to launch a new hotel brand, Capella, in mid-2025 and is progressing with the construction of the fourth phase of its Macau project, expected to be completed by 2027 [1]. - The company is focusing on enhancing its dining and retail offerings and has a strong interest in expanding into Thailand [1].