First Read: Galaxy Entertainment "2026 AIC: Long-term growth driven by GM Ph4"

Research evidence excerpt

First Read: Galaxy Entertainment "2026 AIC: Long-term growth driven by GM Ph4"

Global Research

26 May 2026ab

First Read

EquitiesGalaxy Entertainment

2026 AIC: Long-term growth driven by GM Ph4 Hong Kong

Casinos

12-month rating Buy

Management focus on optimising room yields given limited room supply

We hosted Galaxy Entertainment at our 2026 Asia Investment Conference. 12m price target HK$46.00

Management reiterates their positive view towards Macau's growth outlook, and

expects the company to benefit from the incremental capacity at Galaxy Macau Phase 4

Price (26 May 2026) HK$31.62

by 2027. Given the limited availability of existing premium rooms, Galaxy has focused on

optimising room yields, including through targeting higher value overseas customers. RIC: 0027.HK BBG: 27 HK

Management indicates that competitive intensity has stabilised, as the company Trading data and key metrics

continued to focus on product and service quality, rather than price. Management has

52-wk range HK$43.90-31.62

remained disciplined on cost, with Q1 daily opex up a modest c10% vs 2019 to US

Market cap. HK$138b/US$17.6b

$3.7m/day, despite the additional capacity from GM Ph3 vs 2019. However, daily opex

Shares o/s 4,374m (ORD)

would likely be impacted by c2% salary hike from 1st April. In terms of capital allocation,

the company continues to emphasise a balanced approach towards growth and Free float 49%

shareholder return, and highlights the potential opportunity to revamp Broadway Hotel Avg. daily volume ('000) 13,111

following the GM Ph4 development. Avg. daily value (m) HK$456.4

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

P/BV (12/25E) 1.6x

Net debt to EBITDA (12/25E) NM

EPS (UBS, diluted) (HK$)

UBS Cons.

12/25E 2.73 2.44

12/26E 2.59 2.62

12/27E 2.43 2.79

Angus Chan

Analyst

angus.chan@ubs.com