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].

Group 1 - The core viewpoint of the news is that Galaxy Entertainment's Q3 2025 performance shows a year-on-year increase in net revenue and adjusted EBITDA, despite some quarterly declines due to various factors [1] - Galaxy Entertainment's net revenue for Q3 2025 reached HKD 12.2 billion, a 14% increase year-on-year and a 1% increase quarter-on-quarter [1] - Adjusted EBITDA for the group was HKD 3.3 billion, up 14% year-on-year but down 6% quarter-on-quarter, while the adjusted EBITDA for "Galaxy Macau™" was HKD 3.1 billion, reflecting a 20% year-on-year increase but an 8% quarterly decline [1] Group 2 - According to a report from Citi, the dividend payout ratio for Galaxy Entertainment is expected to rise from 32% in 2023 to 58% by the first half of 2025, with a stable assumption of 60% payout ratio [2] - The company has a strong cash position that can meet new investment demands and potential business impacts, maintaining flexibility in capital utilization [2] - Citi maintains a "Outperform" rating with a target price of HKD 50, highlighting that hosting major events will help the company secure stable market share revenue and that there is room for an increase in the dividend payout ratio [2]

Core Insights - Galaxy Entertainment reported a total gaming revenue of HKD 12.2 billion for Q3 2025, representing a year-on-year increase of 21% and a quarter-on-quarter increase of 2% [1] - The group's net revenue for Q3 2025 was HKD 12.2 billion, up 14% year-on-year and 1% quarter-on-quarter [1] - Mass gaming revenue totaled HKD 9.5 billion, reflecting a 13% year-on-year increase and a 7% quarter-on-quarter increase [1] - VIP gaming revenue reached HKD 2 billion, showing a significant year-on-year increase of 86%, but a quarter-on-quarter decline of 15% [1] - Slot machine gaming revenue amounted to HKD 738 million, with an 11% year-on-year increase and a 6% quarter-on-quarter decline [1] Financial Performance - The main revenue and profit contributor for the group was "Galaxy Macau™," which generated net revenue of HKD 10.1 billion in Q3 2025, up 20% year-on-year and 1% quarter-on-quarter [1] - Adjusted EBITDA for Q3 2025 was HKD 3.1 billion, reflecting a 20% year-on-year increase but an 8% quarter-on-quarter decline [1] - The high win rate in the "Galaxy Macau™" gaming business contributed an additional HKD 18 million to adjusted EBITDA [1] - After normalizing the win rate, adjusted EBITDA was HKD 3.1 billion, representing an 11% year-on-year increase and a 5% quarter-on-quarter increase [1]

Core Viewpoint - Galaxy Entertainment Group reported a 14% year-on-year increase in net revenue to HKD 12.2 billion for the third quarter of 2025, with adjusted EBITDA rising 14% to HKD 3.3 billion, despite challenges from seasonal factors and a typhoon impacting operations [2][11][14]. Financial Performance - The group achieved a net revenue of HKD 12.2 billion for Q3 2025, up 14% year-on-year and 1% quarter-on-quarter [11][14]. - Adjusted EBITDA for Q3 2025 was HKD 3.3 billion, reflecting a 14% increase year-on-year but a 6% decrease quarter-on-quarter [11][14]. - The adjusted EBITDA normalized after accounting for high net win rates was HKD 3.3 billion, up 7% year-on-year and 5% quarter-on-quarter [11][14]. Operational Highlights - The group maintained a strong balance sheet with cash and liquid investments totaling HKD 36.8 billion, resulting in a net amount of HKD 34.8 billion after deducting liabilities [3][22]. - The average hotel occupancy rate for nine hotels in Q3 2025 was 98% [24]. - The group hosted approximately 260 entertainment, sports, arts, and cultural events in the first nine months of 2025, contributing to a 41% year-on-year increase in visitor traffic to "Galaxy Macau" [3][12]. Strategic Developments - The group is advancing the fourth phase of its renovation project, which includes high-end hotel brands, a theater with approximately 5,000 seats, and various non-gaming facilities, aiming for completion by 2027 [6][35]. - A strategic partnership with UFC has been established to bring UFC events to Galaxy Arena, alongside a three-year collaboration with Tencent Music for diverse music events [4][41]. Market Overview - Macau's total gaming revenue for Q3 2025 was HKD 60.7 billion, a 13% year-on-year increase, with visitor arrivals reaching 10.5 million, up 14% year-on-year [12][19]. - The group continues to focus on diversifying its non-gaming business through major entertainment events, supporting Macau's goal of becoming a "City of Entertainment" [3][41].

Core Viewpoint - Galaxy Entertainment Group reported a net revenue of HKD 12.2 billion for Q3 2025, representing a year-on-year increase of 14% and a quarter-on-quarter increase of 1% [1] Financial Performance - Adjusted EBITDA for the group was HKD 3.3 billion, up 14% year-on-year but down 6% quarter-on-quarter [1] - Adjusted EBITDA for "Galaxy Macau™" reached HKD 3.1 billion, marking a 20% increase year-on-year but an 8% decrease quarter-on-quarter [1] - Adjusted EBITDA for the StarWorld Hotel was HKD 369 million, down 7% year-on-year but up 22% quarter-on-quarter [1] - Adjusted EBITDA for "Broadway Macau™" was HKD 1 million, compared to HKD 11 million in Q3 2024 and HKD 4 million in Q2 2025 [1] - Over the past twelve months, the group's adjusted EBITDA totaled HKD 13.4 billion, reflecting a 14% year-on-year increase and a 3% quarter-on-quarter increase [1] Gaming Operations - In Q3 2025, the gaming business experienced a higher net win rate, contributing an additional HKD 14 million to adjusted EBITDA [1] - After normalizing the net win rate, the adjusted EBITDA was HKD 3.3 billion, which is a 7% increase year-on-year and a 5% increase quarter-on-quarter [1]

Core Viewpoint - Galaxy Entertainment Group reported a net revenue of HKD 12.2 billion for Q3 2025, representing a 14% year-on-year increase and a 1% quarter-on-quarter increase [1] Financial Performance - Adjusted EBITDA for the group was HKD 3.3 billion, up 14% year-on-year but down 6% quarter-on-quarter [1] - Adjusted EBITDA for "Galaxy Macau™" reached HKD 3.1 billion, marking a 20% year-on-year increase and an 8% quarter-on-quarter decrease [1] - Adjusted EBITDA for the Galaxy StarWorld Hotel was HKD 369 million, down 7% year-on-year but up 22% quarter-on-quarter [1] - Adjusted EBITDA for "Broadway Macau™" was HKD 1 million, compared to HKD 11 million in Q3 2024 and HKD 4 million in Q2 2025 [1] - Over the past twelve months, the group's adjusted EBITDA totaled HKD 13.4 billion, reflecting a 14% year-on-year increase and a 3% quarter-on-quarter increase [1] Gaming Operations - In Q3 2025, the gaming business's net win rate was higher than normal, contributing an additional HKD 14 million to adjusted EBITDA [1] - After normalizing the net win rate, adjusted EBITDA was HKD 3.3 billion, which is a 7% year-on-year increase and a 5% quarter-on-quarter increase [1]

Core Viewpoint - Galaxy Entertainment reported a 8.27% year-on-year increase in revenue to HKD 23.246 billion for the six months ending June 30, 2025, with a 19.44% increase in net profit attributable to shareholders to HKD 5.24 billion [1] Financial Performance - Revenue for the first half of 2025 was HKD 23.246 billion, up 8.27% year-on-year [1] - Net profit attributable to shareholders reached HKD 5.24 billion, reflecting a 19.44% increase compared to the previous year [1] - Basic earnings per share were HKD 1.198 [1] - The company proposed an interim dividend of HKD 0.7 per share [1] Segment Performance - "Galaxy Macau™" was the largest source of revenue and profit for the group, generating net revenue of HKD 19.1 billion, a 13% year-on-year increase [1] - Adjusted EBITDA for the first half of 2025 was HKD 6.3 billion, up 18% year-on-year [1] - The high net win rate in the gaming business contributed approximately HKD 755 million to the adjusted EBITDA increase [1] - After normalizing the net win rate, the adjusted EBITDA for the first half of 2025 would be HKD 5.6 billion, reflecting a 3% year-on-year increase [1]

Financial Performance - GEG's Q1 Net Revenue reached $11.2 billion, a 6% increase year-on-year but a 1% decrease quarter-on-quarter[3] - Adjusted EBITDA for Q1 was $3.3 billion, up 16% year-on-year and 2% quarter-on-quarter[3] - Galaxy Macau's Q1 Net Revenue was $9.1 billion, up 10% year-on-year, while Adjusted EBITDA was $3.0 billion, up 15% year-on-year[16] - StarWorld Macau's Q1 Net Revenue was $1.2 billion, down 9% year-on-year, and Adjusted EBITDA was $350 million, down 20% year-on-year[19] Balance Sheet and Dividends - The Group's cash and liquid investments increased to $33.0 billion, with a net position of $29.0 billion after deducting debt of $4.0 billion[6] - A final dividend of $0.50 per share was recommended, payable in June 2025[6] Operational Highlights - Galaxy Macau experienced a 64% year-on-year increase in foot traffic, attributed to diverse non-gaming amenities and entertainment offerings[7] - Hotel occupancy for Q1 across Galaxy Macau's seven hotels was 99%[16] - Hotel occupancy for Q1 at StarWorld Macau was 100%[19] Development and Expansion - Capella at Galaxy Macau soft launched in early May, adding a new ultra-luxury hotel brand to GEG's portfolio[11, 59] - Construction of Phase 4 is progressing, focusing on non-gaming amenities, entertainment, and family facilities, with completion scheduled for 2027[11, 65]

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].