First Read: Galaxy Entertainment "Key takeaways from Q126 earnings call" (Buy)

Research evidence excerpt

First Read: Galaxy Entertainment "Key takeaways from Q126 earnings call" (Buy)

Global Research

12 May 2026ab

First Read

EquitiesGalaxy Entertainment

Key takeaways from Q126 earnings call Hong Kong

Casinos

12-month rating Buy

Premium segments will remain a strategic focus

During the earnings call, GEG's Chairman Francis Lui reiterates the group's capital 12m price target HK$46.00

allocation strategy, emphasising a balanced capital allocation approach aimed at

preserving future optionality. Management believes this strategy will enable the

Price (12 May 2026) HK$32.34

company to balance between dividend sustainability, investment needs and resilience

against unforeseeable circumstances. Meanwhile, premium segments will remain a RIC: 0027.HK BBG: 27 HK

strategic focus. Management indicates that VIP and premium mass contribution has Trading data and key metrics

exceeded 50% of their gaming revenue, and has recently expanded the no. of private

52-wk range HK$43.90-31.40

salons at Horizon Plus to enrich premium gaming offerings. With Galaxy Macau Phase 4

Market cap. HK$141b/US$18.1b

scheduled to complete in 2027, management sounded confident on the project return

Shares o/s 4,374m (ORD)

profile and its ability to further strengthen Galaxy's competitiveness. Importantly,

management reiterates their focus to compete on quality of products and services, not Free float 49%

price, and supported by targeted reinvestments and yield optimisation through data-led Avg. daily volume ('000) 11,589

segmentation. Avg. daily value (m) HK$415.3

Common s/h equity (12/25E) HK$83.1b

Upcoming world cup impact likely manageable P/BV (12/25E) 1.7x

Management noted solid trends during April and May Golden Week, and foresees Net debt to EBITDA (12/25E) NM