Core Viewpoint - The company reported a strong recovery in its business segments for the first half of 2025, with significant growth in net income and EBITDA, driven by robust performance in the mid-market gaming sector [1][2]. Financial Performance - In H1 2025, the company achieved net revenue of $292 million, a year-on-year increase of 19.9% [1] - EBITDA, excluding the impact of the Vladivostok project impairment, was $200 million, reflecting a year-on-year growth of 38.5% [1] - The overall gross gaming revenue (GGR) reached $332 million, up 17.2% year-on-year [1] - The mid-market gaming table GGR was $162 million, increasing by 24.0% year-on-year [1] - The company’s comprehensive gross margin improved to 80.7%, a 1.8% increase year-on-year, primarily due to faster growth in the mid-market gaming table segment [2] Business Segment Analysis - The mid-market gaming table segment showed a gross margin of 91.9%, up 0.3 percentage points year-on-year [2] - High-end VIP business GGR recovered to 138.8% of the same period in 2019, with a year-on-year increase of 89.0% [1][2] - The company’s administrative expenses were reduced by 35.6% year-on-year, contributing to improved EBITDA and net profit margins [2] Competitive Advantage - The company holds exclusive operating rights in the Phnom Penh area until 2045, enhancing its competitive position in Southeast Asia [3] - Cambodia's gaming tax rates are competitive, at 7% for mid-market GGR and 4% for non-mid-market GGR, allowing the company to offer attractive commission policies to high-end clients [3] Growth Outlook - The company is expected to maintain steady growth in the medium to long term, supported by ongoing foreign direct investment and increased tourism demand [3] - Projections for EBITDA from 2025 to 2027 are $401 million, $445 million, and $487 million, respectively [3] - The company is rated as a strong buy due to its exclusive operating rights and sustainable growth potential, with a 2025 EV/EBITDA of 7.4x and a P/E of 11.4x [3]