Galaxy Entertainment (0027) First Take on 1Q: No surprises

Research evidence excerpt

Galaxy Entertainment (0027) First Take on 1Q: No surprises

J P M O R G A N Asia Pacific Equity Research

12 May 2026

Galaxy Entertainment (0027) Overweight

0027.HK, 27 HK

First Take on 1Q: No surprises Price (11 May 26):HK$32.06

Price Target (Dec-26):HK$52.00

Our First Take: Galaxy wrapped up Macau’s 1Q season with an in-line print – no

drama, no surprise, no catalyst. EBITDA came in ~2% above consensus, and

details were within expectations. 1Q is old news anyway and we view the results

as largely a non-event. Note that we already have May holiday reads (see our note)

and the industry is entering a slow season until the Summer holidays; nothing much

from tonight’s call (5.30pm HKT; by invitation only) should move the needle,

either. Despite our neutral sector view, Galaxy remains our top pick for its visible Head of Asia Gaming/Leisure and

long-term alpha, underpinned by Phase 4 (opening next year) boosting its footprint China Software/SaaS Research

by >40% – with a better quality offering. DS Kim AC

(852) 2800-8597

ds.kim@jpmorgan.com

Key Positives J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

Selina Li

(852) 2800-8530• Solid EBITDA. Headline EBITDA dropped 17% q/q, but sequential

momentum was distorted by an exceptional luck impact last quarter (+HK selina.c.li@jpmorgan.com

$731m vs. -HK$2m in 1Q). Luck-adjusted EBITDA was +21% y/y and flat q/q J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

at HK$3.6B, ~2% above consensus of HK$3.5B — achieved despite market Lindsey Qian

share loss (more below), thanks to best-in-class opex management: costs fell (86 21) 6106 6269

8% q/q (or +6% y/y, still well below the industry average of +14% in 1Q). lindsey.qian@jpmorgan.com

• Cash aplenty.