Core Viewpoint - The report from Credit Lyonnais highlights Galaxy Entertainment (00027) as having the most robust cash reserves among licensed gaming operators in Macau, with significant potential to leverage financial resources to enhance shareholder return on equity (ROE) [1][2] Group 1: Financial Position and Strategy - Galaxy Entertainment has a net cash position equivalent to 17% of its current market value, amounting to approximately HKD 30.3 billion (USD 3.9 billion) as of Q2 2025 [1] - The company is expected to deploy its capital flexibly, with potential strategies including investments in local opportunities and increasing dividends, which would enhance capital efficiency and ROE through financial leverage [1][2] - The forecasted annualized ROE for Galaxy Entertainment is projected to be around 13% for the period, which is lower than the 18-22% range observed from 2017 to 2019 [1][2] Group 2: Dividend Policy and Market Outlook - Investors have shown a preference for increased dividends, including special dividends, especially in light of the structural slowdown in industry growth [1] - Credit Lyonnais anticipates that Galaxy Entertainment will increase its dividend per share to HKD 1.434, HKD 1.503, and HKD 1.634 for the years 2025 to 2027, yielding dividend returns of 3.5%, 3.7%, and 4% respectively [2] - The company is also expected to retain funds to capitalize on investment opportunities in Thailand, where each gaming license entity is required to invest a minimum of THB 100 billion (approximately USD 3.1 billion) [2]