Core Viewpoint - The company reported a strong performance in Q4 2025, with net revenue increasing by 22.5% year-on-year and 13.7% quarter-on-quarter, reaching HKD 13.83 billion, driven primarily by "Galaxy Macau" [1] Group 1: Financial Performance - VIP gaming revenue surged by 182.6% year-on-year and 52.1% quarter-on-quarter, recovering to 48.1% of 2019 levels, partly benefiting from a higher net win rate [1] - Mass gaming revenue grew by 15.0% year-on-year and 5.8% quarter-on-quarter, reaching 136.6% of 2019 levels [1] - Adjusted EBITDA increased by 32.7% year-on-year and 28.6% quarter-on-quarter to HKD 4.3 billion, recovering to 99.6% of 2019 levels, with an EBITDA margin of 31.1%, up 2.4% year-on-year and 3.6% quarter-on-quarter [1] - The market share during the period was estimated at 22%, and the overall performance met expectations [1] - The company maintained a strong balance sheet with net cash of HKD 35 billion, the strongest in the industry [1] Group 2: Segment Performance - "Galaxy Macau" and StarWorld Hotel reported net revenues of HKD 11.8 billion and HKD 1.3 billion, respectively, with year-on-year growth of 28.8% and a slight decrease of 1.1%, and quarter-on-quarter growth of 16.7% and 1.0% [2] - Adjusted EBITDA for "Galaxy Macau" and StarWorld Hotel was HKD 4.0 billion and HKD 360 million, respectively, with year-on-year growth of 41% and a decrease of 2%, and quarter-on-quarter growth of 31% and a decrease of 3.5% [2] - The EBITDA margins for "Galaxy Macau" and StarWorld Hotel were 34.1% and 27.9%, respectively [2] - Hotel occupancy rates were 99% for "Galaxy Macau" and 100% for StarWorld Hotel [2] Group 3: Future Developments and Market Outlook - The opening of the new hotel brand, Capella Hotels and Resorts, in February 2026 is expected to drive growth, with ongoing construction of the fourth phase of "Galaxy Macau" projected to be completed by 2027 [2] - The fourth phase will cover approximately 600,000 square meters and introduce several high-end hotel brands, along with various non-gaming facilities [2] - The company has stabilized its promotional expenses and has increased its dividend payout ratio three times over the past three years to 61% [3] - The target price is set at HKD 51.05, equivalent to 13 times the 2026 EV/EBITDA, reflecting confidence in the company's long-term growth prospects [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.05, representing a potential upside of 29.63% from the current stock price of HKD 39.38 [2][4]. Core Insights - The company reported a 33% year-on-year growth in EBITDA for Q4 2025, with a payout ratio increased to 61% [2]. - The overall performance for Q4 2025 met expectations, driven by increased foot traffic, improvements in high-end and VIP business, and the relaxation of visa policies [4]. - The company has a strong balance sheet with net cash of HKD 35 billion, positioning it as one of the strongest in the industry [4]. Financial Summary - Total net revenue for 2024 is projected at HKD 43,432 million, increasing to HKD 61,854.3 million by 2028, reflecting a compound annual growth rate (CAGR) of 10.8% [3][5]. - EBITDA is expected to grow from HKD 12,188 million in 2024 to HKD 18,753.5 million in 2028, with an EBITDA margin projected to improve from 28.1% to 30.3% over the same period [5]. - Net profit is forecasted to rise from HKD 8,759.2 million in 2024 to HKD 13,935.4 million in 2028, indicating a robust growth trajectory [3][5]. Operational Highlights - The company achieved a net revenue of HKD 13.83 billion in Q4 2025, a 22.5% year-on-year increase, with VIP gaming revenue soaring by 182.6% [4]. - The occupancy rates for the "Galaxy Macau" and the StarWorld Hotel were reported at 99% and 100%, respectively, indicating strong demand [4]. - The company is advancing the construction of the fourth phase of "Galaxy Macau," expected to be completed by 2027, which will introduce several high-end hotel brands and additional facilities [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.05, representing a potential upside of 29.63% from the current stock price of HKD 39.38 [2][4]. Core Insights - The company reported a 33% year-on-year growth in EBITDA for Q4 2025, with a payout ratio increased to 61% [2]. - The overall performance for Q4 2025 met expectations, driven by increased foot traffic, improvements in high-end and VIP business, and the relaxation of visa policies [4]. - The company has a strong balance sheet with net cash of HKD 35 billion, positioning it as one of the strongest in the industry [4]. Financial Summary - Total net revenue for 2024 is projected at HKD 43,432 million, increasing to HKD 61,854.3 million by 2028, with a compound annual growth rate (CAGR) of 10.8% [3][5]. - EBITDA is expected to grow from HKD 12,188 million in 2024 to HKD 18,753.5 million in 2028, reflecting a CAGR of 12.1% [3][5]. - Net profit is forecasted to rise from HKD 8,759.2 million in 2024 to HKD 13,935.4 million in 2028, with a CAGR of 11.9% [3][5]. - The company’s earnings per share (EPS) is projected to increase from HKD 2.0 in 2024 to HKD 3.2 in 2028 [3][5]. Operational Highlights - The company’s market share is estimated to reach 22%, with significant contributions from the "Galaxy Macau" and the StarWorld Hotel, which reported net revenue growth of 28.8% and a slight decrease of 1.1% respectively [4]. - The EBITDA margin for "Galaxy Macau" is reported at 34.1%, while the StarWorld Hotel's EBITDA margin stands at 27.9% [4]. - The company is continuing to develop its fourth phase of "Galaxy Macau," expected to be completed by 2027, which will introduce several high-end hotel brands and additional facilities [4].

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].