Core Viewpoint - The company achieved a net revenue of HKD 13.833 billion in Q4 2025, representing a year-on-year increase of 22.5%. Adjusted EBITDA reached HKD 4.296 billion, up 32.7% year-on-year. For the full year 2025, net revenue totaled HKD 49.242 billion, a 13.4% increase, with adjusted EBITDA of HKD 14.502 billion, up 19.0% year-on-year [1] Financial Performance - Q4 2025 net revenue was HKD 13.833 billion, a 22.5% increase year-on-year. Adjusted EBITDA for the same period was HKD 4.296 billion, reflecting a 32.7% year-on-year growth [1] - For the full year 2025, net revenue reached HKD 49.242 billion, a 13.4% increase year-on-year, with adjusted EBITDA of HKD 14.502 billion, up 19.0% year-on-year [1] Business Segments - The company's VIP and mass market gaming segments showed record recovery, with Q4 2025 VIP gaming revenue at HKD 3.109 billion and mass gaming revenue at HKD 10.011 billion. Total gaming revenue reached HKD 13.950 billion, recovering to 48.1%, 136.6%, and 96.6% of 2019 levels respectively, marking new highs for recovery in 2023 [1] - The company expects its market share to rise to approximately 22% in Q4 2025, indicating stable growth in market share [1] Non-Gaming Initiatives - The company is actively optimizing non-gaming projects and enhancing shareholder returns. In 2025, the number of visitors to Macau is projected to increase by 15% to 40.1 million, setting a new historical record [2] - The company is focusing on high-end mass and ultra-high-end gaming segments, with the opening of the Capella in May 2025 and a significant contribution expected from this segment [3] - The company hosted around 350 events in 2025, including concerts and large-scale activities, and is progressing with the renovation of its facilities, including hotel rooms and dining areas [3] Shareholder Returns - The board of directors proposed a final dividend of HKD 0.80 per share for the year ending December 31, 2025, up from HKD 0.50 per share in 2024. The total dividend for 2025 is expected to be HKD 1.50 per share, compared to HKD 1.00 per share in 2024, with a payout ratio exceeding 60% [4] - The company anticipates net profits of HKD 11.604 billion and HKD 12.496 billion for 2026 and 2027, respectively, with current price-to-earnings ratios of 15.8X and 14.6X [4]

Core Viewpoint - The report from Haitong International indicates that SJM Holdings (00200) experienced a slight decline in market share in Q4 2025, while showing improvement compared to Q4 2024, with a strong start to 2026 and steady recovery in industry demand [1] Group 1: Financial Performance - In Q4 2025, SJM Holdings reported operating revenue of $1.29 billion, an increase of 8.6% year-on-year; adjusted EBITDA reached $300 million, up 11% year-on-year, with an adjusted EBITDA margin of 23.2%, improving by 0.5 percentage points [2] - The company's operating revenue for 2025 was $5.16 billion, reflecting an 11.3% year-on-year increase; adjusted EBITDA was $1.32 billion, up 15.5% year-on-year, with an adjusted EBITDA margin of 25.5%, an increase of 0.9 percentage points [2] Group 2: Macau Market Performance - SJM Holdings' operating revenue in Macau for Q4 was $1.1 billion, a year-on-year increase of 11.1% and a slight quarter-on-quarter increase of 0.1%; the contributions from gaming and non-gaming segments were $930 million and $180 million, respectively, with year-on-year changes of +11.5% and +8.8% [3] - The operating revenue from different properties was $700 million from Grand Lisboa, $360 million from Lisboa Palace, and $30 million from other properties, with year-on-year changes of +17.7%, +5.4%, and -18.9% respectively [3] Group 3: Betting Trends - Total betting amount in Macau reached $11.76 billion, a year-on-year increase of 1.7% and a quarter-on-quarter increase of 8.0%; the breakdown for VIP, mass market, and slot machines was $6.28 billion, $2.83 billion, and $2.66 billion, with year-on-year changes of -2.0%, +8.5%, and +3.9% respectively [4] - The VIP win rate for SJM Holdings was 3.18%, exceeding the expected range of 2.85% to 3.15% [4] Group 4: Revenue Growth and Margins - The gross gaming revenue in Macau was $1.16 billion, a year-on-year increase of 9.9%, but below the industry average growth of 15%; the gross revenue from VIP, mass market, and slot machines was $200 million, $850 million, and $80 million, with year-on-year changes of +31.1%, +7.9%, and -8.8% respectively [5] - Adjusted EBITDA for Macau was $280 million, a year-on-year increase of 24%, but a quarter-on-quarter decline of 11.2%, with an adjusted EBITDA margin of 25.5%, up 2.7 percentage points year-on-year [6]

Revenue Performance - In Q3 2025, MGM China achieved total revenue of HKD 8.51 billion, a year-on-year increase of 17.4%[1] - Adjusted EBITDA for Q3 2025 reached HKD 2.37 billion, up 19.6% year-on-year, with an adjusted EBITDA margin of 27.9%, an increase of 0.52 percentage points year-on-year[1][5] - Total revenue for the year-to-date reached HKD 25.17 billion, a 7.3% year-on-year increase[1] Business Segmentation - Gaming and non-gaming segments contributed HKD 7.41 billion and HKD 1.1 billion respectively, with year-on-year changes of +18.8% and +8.9%[2] - By property, MGM Macau and MGM Cotai generated total revenues of HKD 3.39 billion and HKD 5.12 billion, reflecting year-on-year increases of 11.6% and 21.5% respectively[2] Betting and Revenue Growth - Total betting amount reached HKD 77.45 billion, a 20.7% year-on-year increase, although it declined 10.1% quarter-on-quarter[3] - The company's gross gaming revenue (GGR) was HKD 9.5 billion, up 20.0% year-on-year, surpassing the industry growth rate of 12.5%[4][12] Market Share and Future Outlook - MGM China's market share in Q3 2025 was 15.5%, down 1.1 percentage points from Q2 2025 but up 0.7 percentage points from Q3 2024[6][14] - The company anticipates a visitor increase of 11% during the Golden Week holiday, with a projected 20% rise in gross gaming revenue[6][15] Risks - Potential risks include lower-than-expected macroeconomic growth, stricter gaming regulations in Macau, and increased competition in overseas gaming markets[7][16]

Group 1 - The gaming stocks continued to decline, with Sands China down 5.41% to HKD 19.05, Melco International Development down 4.05% to HKD 4.98, Wynn Macau down 3.65% to HKD 6.34, and MGM China down 3.16% to HKD 14.4 [1] - Morgan Stanley reported that Macau's total gaming revenue (GGR) for the first five days of October reached MOP 5.5 billion, with an average daily revenue of MOP 1.1 billion, marking the best performance for the Golden Week in five years. However, this represents only a 3% year-on-year increase, which is below expectations [1] - UBS noted that Wynn Macau's market share significantly increased in September, rising by approximately 200 basis points month-on-month, contributing to a quarterly increase of 150 basis points in market share. The second-highest increase was observed in SJM, which saw a month-on-month increase of about 50 basis points, but a decline of 30 basis points in the third quarter [1] Group 2 - The visitor volume from October 1 to 5 remained flat, further dragging down GGR growth, as a typhoon caused a 25% drop in visitor numbers on October 5 [1] - Morgan Stanley expects GGR for October to grow by 11% to 13% year-on-year, reaching MOP 23 billion, which would be the highest in six years [1] - Compared to market expectations, the market shares of Galaxy Entertainment and Wynn were higher than anticipated, while MGM, Sands China, and SJM were below expectations [1]

Investment Rating - The report assigns a positive outlook for Galaxy Entertainment, indicating confidence in its long-term prospects with an interim dividend of HKD0.70 per share, reflecting a dividend payout ratio of 58% [5][12]. Core Insights - Galaxy Entertainment reported a net revenue of HKD12.04 billion for Q2 2025, representing a year-on-year increase of 10.3% and a quarter-on-quarter increase of 7.5% [2][7]. - The adjusted EBITDA for Q2 2025 reached HKD3.57 billion, up 12.4% year-on-year, with an adjusted EBITDA margin of 29.6%, an increase of 0.5 percentage points year-on-year [4][11]. - The company's market share increased to 20.2% in Q2 2025, up from 19.5% in Q1 2025, indicating a strengthening position in the market [5][12]. Revenue Breakdown - In Q2 2025, gaming revenue increased by 12.3% year-on-year, contributing HKD9.66 billion, while non-gaming revenue reached HKD1.61 billion, up 8.4% year-on-year [2][8]. - The total betting amount for the company reached HKD119.45 billion, an increase of 18.4% year-on-year, with VIP betting accounting for 46.7% of the total [3][9]. Performance Metrics - The company's gross gaming revenue (GGR) for Q2 2025 was HKD12.01 billion, reflecting an 11.8% year-on-year increase, which outpaced the industry growth rate of 8.3% [10]. - The adjusted EBITDA for Galaxy Macau and StarWorld Macau was HKD3.33 billion and HKD0.3 billion respectively, with respective adjusted EBITDA margins of 33.3% and 25.9% [4][11].