Core Insights - The company reported a net revenue increase of 14.0% year-on-year and 1.0% quarter-on-quarter, reaching HKD 12.16 billion, recovering to 95.7% of the same period in 2019 [1] - VIP gaming table turnover increased by 46.28% year-on-year and 16.6% quarter-on-quarter, recovering to 39.7% of the same period in 2019 [1] - Adjusted EBITDA grew by 13.6% year-on-year but decreased by 6.4% quarter-on-quarter to HKD 3.34 billion, recovering to 81.3% of the same period in 2019 [1] Financial Performance - The net revenue for "Galaxy Macau" and StarWorld Hotel increased by 20% and decreased by 6% year-on-year, respectively, with quarter-on-quarter growth of 1% and 8%, reaching HKD 10.1 billion and HKD 1.3 billion [2] - Adjusted EBITDA for "Galaxy Macau" and StarWorld Hotel was HKD 3.07 billion and HKD 370 million, showing year-on-year growth of 20% and a decrease of 7%, respectively [2] - The EBITDA margin for "Galaxy Macau" and StarWorld Hotel was 30.4% and 29.2%, respectively [2] Development Projects - The majority of facilities for the new hotel brand, Capella Hotels and Resorts, have opened, with positive customer feedback; remaining facilities, including a specialty restaurant, are expected to open early next year [2] - The fourth phase of "Galaxy Macau" construction is ongoing, expected to be completed by 2027, covering approximately 600,000 square meters and introducing several high-end hotel brands [2] - Capital expenditure for the year is expected to be significantly lower than the previously budgeted HKD 7 billion, with HKD 630 million spent during the period [2] Market Trends - The company recorded good performance in October and post-Golden Week, with retail performance showing quarter-on-quarter improvement [3] - Approximately 260 entertainment, sports, arts, culture, and exhibition events were held from January to September 2025, leading to a 41% year-on-year increase in foot traffic to "Galaxy Macau" [3] - The market share remained stable at around 19.6%, with short-term expectations to maintain above 20% [3] Investment Outlook - The company maintains a buy rating with a target price of HKD 50.06, equivalent to 13 times the 2026 EV/EBITDA [3] - Confidence in the company's long-term development is supported by strong product offerings, a solid balance sheet, and upcoming projects [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 50.06, representing a potential upside of 30.36% from the current stock price of HKD 38.40 [3]. Core Insights - The company's Q3 2025 performance met expectations, with net revenue increasing by 14.0% year-on-year and 1.0% quarter-on-quarter, reaching HKD 12.16 billion, recovering to 95.7% of the same period in 2019 [3]. - The VIP gaming table turnover increased by 46.28% year-on-year and 16.6% quarter-on-quarter, while mass gaming revenue grew by 12.8% year-on-year and 7.4% quarter-on-quarter [3]. - The adjusted EBITDA for the group grew by 13.6% year-on-year but decreased by 6.4% quarter-on-quarter to HKD 3.34 billion, recovering to 81.3% of the same period in 2019 [3]. - The company holds a strong balance sheet with net cash of HKD 34.8 billion, the strongest in the industry [3]. Financial Summary - Total net revenue is projected to grow from HKD 35,683.6 million in 2023 to HKD 55,764.5 million by 2027, reflecting a compound annual growth rate (CAGR) of 8.5% [2][4]. - EBITDA is expected to increase from HKD 9,955.0 million in 2023 to HKD 16,439.8 million in 2027, with an EBITDA margin improving from 27.9% to 29.5% over the same period [2][4]. - Net profit is forecasted to rise from HKD 6,828.0 million in 2023 to HKD 12,317.4 million in 2027, indicating a CAGR of 9.6% [2][4]. - The company plans to maintain a dividend payout, with dividends per share expected to increase from HKD 0.5 in 2023 to HKD 1.6 in 2027, resulting in a dividend yield of 4.3% by 2027 [2][4]. Operational Highlights - The performance of "Galaxy Macau™" and the StarWorld Hotel showed a net revenue increase of 20% and a decrease of 6% year-on-year, respectively, with hotel occupancy rates at 98% and 99% [3]. - The company is progressing with the construction of the fourth phase of "Galaxy Macau™," expected to be completed in 2027, which will introduce several high-end hotel brands and a theater with 5,000 seats [3]. - The company hosted approximately 260 entertainment, sports, arts, and cultural events from January to September 2025, leading to a 41% year-on-year increase in visitor traffic to "Galaxy Macau™" [3].

Core Viewpoint - First Shanghai maintains a "Buy" rating for Galaxy Entertainment (00027) with a target price of HKD 50.06, citing strong product and service offerings, a robust balance sheet, and upcoming projects that will enhance market share [1] Group 1: Financial Performance - In Q3 2025, Galaxy's net revenue increased by 14.0% year-on-year and 1.0% quarter-on-quarter to HKD 12.16 billion, recovering to 95.7% of the 2019 level [2] - VIP gaming table turnover rose by 46.28% year-on-year and 16.6% quarter-on-quarter, recovering to 39.7% of the 2019 level [2] - Adjusted EBITDA grew by 13.6% year-on-year but decreased by 6.4% quarter-on-quarter to HKD 3.34 billion, with an EBITDA margin of 27.5% [2] Group 2: Hotel Performance - Net revenue for Macau Galaxy and StarWorld hotels grew by 20% and decreased by 6% year-on-year, respectively, with quarter-on-quarter growth of 1% and 8% to HKD 10.1 billion and HKD 1.3 billion [3] - Adjusted EBITDA for Macau Galaxy and StarWorld hotels was HKD 3.07 billion and HKD 370 million, with respective EBITDA margins of 30.4% and 29.2% [3] Group 3: Project Updates - The Capella Hotel and Resort, the tenth brand of Macau Galaxy, has most facilities open, with a remaining restaurant expected to open early next year [4] - The construction of the fourth phase of Macau Galaxy is ongoing, expected to be completed by 2027, covering approximately 600,000 square meters and introducing several high-end hotel brands [4] Group 4: Recent Developments - The group hosted around 260 entertainment, sports, arts, and cultural events from January to September 2025, leading to a 41% year-on-year increase in visitor traffic [5] - Daily operating expenses increased by 8% quarter-on-quarter to HKD 37 million, while market share remained stable at approximately 19.6% [5]

Core Viewpoint - First Shanghai maintains a "Buy" rating for Galaxy Entertainment (00027) with a target price of HKD 50.06, citing strong product and service offerings, a robust balance sheet, and upcoming projects that will enhance market share [1] Group 1: Q3 2025 Performance Overview - Galaxy's net revenue increased by 14.0% year-on-year and 1.0% quarter-on-quarter to HKD 12.16 billion, recovering to 95.7% of the 2019 level [1] - VIP gaming table turnover rose by 46.28% year-on-year and 16.6% quarter-on-quarter, recovering to 39.7% of the 2019 level [1] - Adjusted EBITDA grew by 13.6% year-on-year but decreased by 6.4% quarter-on-quarter to HKD 3.34 billion, with an EBITDA margin of 27.5% [1] Group 2: Macau Galaxy and StarWorld Hotel Performance - Macau Galaxy's net revenue grew by 20% year-on-year and 1% quarter-on-quarter to HKD 10.1 billion, recovering to 108% of the 2019 level [2] - StarWorld Hotel's net revenue decreased by 6% year-on-year but increased by 8% quarter-on-quarter to HKD 1.3 billion, recovering to 50% of the 2019 level [2] - Adjusted EBITDA for Macau Galaxy was HKD 3.07 billion (up 20% year-on-year) and for StarWorld was HKD 370 million (down 7% year-on-year) [2] Group 3: Updates on Macau Galaxy Phase 3 and 4 - The Capella Hotel and Resort, the tenth brand of Macau Galaxy, has most facilities open with positive customer feedback; remaining facilities are expected to open early next year [3] - Construction for Phase 4 is ongoing, expected to be completed by 2027, covering approximately 600,000 square meters with multiple high-end hotel brands and various entertainment facilities [3] - Capital expenditure for the year is expected to be significantly lower than the previously budgeted HKD 7 billion, with HKD 630 million spent in the period and a budget of approximately HKD 7 billion for next year [3] Group 4: Recent Performance - Retail performance showed quarter-on-quarter improvement, with approximately 260 events held from January to September 2025, increasing foot traffic by 41% year-on-year [4] - The market share remained stable at around 19.6%, with short-term expectations to maintain above 20% [4] - Daily operating expenses increased by 8% quarter-on-quarter to HKD 370 million [4]

Core Viewpoint - The company reported strong financial performance for Q2 2025, with significant year-on-year and quarter-on-quarter growth in net revenue and adjusted EBITDA, driven primarily by high-end gaming activities [1][2][4] Financial Performance - Net revenue for the company increased by 10.3% year-on-year and 7.5% quarter-on-quarter to HKD 12.04 billion, recovering to 91.4% of the same period in 2019 [1] - Adjusted EBITDA rose by 12.4% year-on-year and 8.3% quarter-on-quarter to HKD 3.57 billion, recovering to 82.4% of the same period in 2019, with an EBITDA margin of 29.6% [1] - The company announced an interim dividend of HKD 0.7 per share, with a payout ratio increased to 59%, marking it as the first in the industry to raise dividends [1] Segment Performance - "Galaxy Macau" and StarWorld Hotel reported net revenues of HKD 10 billion and HKD 1.17 billion respectively, with year-on-year growth of 16% and a decline of 11.5%, while quarter-on-quarter changes were 9% and a decrease of 5.7% [2] - Adjusted EBITDA for "Galaxy Macau" and StarWorld Hotel was HKD 3.33 billion and HKD 0.30 billion respectively, with year-on-year growth of 19.5% and a decline of 22.3%, and quarter-on-quarter changes of 10.2% and a decrease of 13.4% [2] - Hotel occupancy rates for "Galaxy Macau" and StarWorld Hotel were reported at 98% and 100% respectively [2] Development Projects - The company has commenced trial operations for its new hotel brand, Capella, which features approximately 95 luxury villas and suites, aiming to attract high-quality clientele [3] - Ongoing construction for the fourth phase of "Galaxy Macau" is expected to be completed by 2027, covering an area of approximately 600,000 square meters and introducing several high-end hotel brands [3] - The total capital expenditure budget for the year is set at HKD 7 billion, with HKD 1.5 billion already invested during the period [3] Market Dynamics - Large concerts and performances are contributing to overall revenue growth, while competition within the industry remains intense but manageable [4] - Retail sales remained stable, with rental income increasing by 1%, and future retail growth is expected to be steady [4] - The company is focusing on enhancing non-gaming facilities to cater to mid-market strategies, particularly at StarWorld Hotel [4] Investment Outlook - The company maintains a buy rating with a target price of HKD 49.81, reflecting confidence in its long-term growth prospects due to strong financials, robust management, and ongoing development projects [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 47.25, representing a potential upside of 48.11% from the current stock price of HKD 31.90 [1]. Core Insights - The company's Q4 2024 performance met expectations, with a year-to-date low double-digit growth forecast. The net revenue for Q4 was HKD 11.29 billion, recovering to 87.1% of the 2019 level, with a year-on-year increase of 9.4% and a quarter-on-quarter increase of 5.9% [2][3]. - The introduction of smart gaming tables and the launch of new products, particularly the Capella Hotel and Resort, are expected to enhance market share. The company has a strong balance sheet with net cash of HKD 27.1 billion, the strongest in the industry [2][3]. Financial Summary - Total net revenue is projected to grow from HKD 35.68 billion in 2023 to HKD 55.18 billion by 2027, reflecting a compound annual growth rate (CAGR) of 10.3% [2][3]. - EBITDA is expected to increase from HKD 9.96 billion in 2023 to HKD 16.89 billion in 2027, with an EBITDA margin improving from 27.9% to 30.6% over the same period [2][3]. - Net profit is forecasted to rise from HKD 6.83 billion in 2023 to HKD 12.62 billion in 2027, with a net profit margin increasing from 19.1% to 22.9% [2][3]. Operational Highlights - The company reported a strong performance in its flagship properties, with net revenues for Galaxy Macau and StarWorld Hotel increasing by 12% and 3% year-on-year, respectively [2]. - The occupancy rates for Galaxy Macau and StarWorld Hotel were reported at 98% and 100%, respectively, indicating robust demand [2]. - The company is advancing its development projects, including the introduction of the Capella Hotel and Resort in mid-2025 and the ongoing construction of the fourth phase of Galaxy Macau, expected to be completed by 2027 [2][3].