Galaxy Entertainment (27 HK) Buy: Maintaining cost discipline and long-term focus

研报英文原文证据摘录

Galaxy Entertainment (27 HK) Buy: Maintaining cost discipline and long-term focus

13 May 2026

Galaxy Entertainment (27 HK) EquitiesHotels Restaurants & Leisure

Buy: Maintaining cost discipline and long-term focus Hong Kong

◆ Galaxy maintains cost discipline while defending its market

MAINTAIN BUY

share via a targeted and efficient marketing strategy

TARGET PRICE (HKD) PREVIOUS TARGET (HKD)◆ VIP and premium mass constitute 53% of GGR, StarWorld is

transitioning to capture mid-end premium demand 48.50 48.50

◆ Retain Buy with unchanged TP of HKD48.50 SHARE PRICE (HKD) UPSIDE/DOWNSIDE

32.34 +50.0%

1Q26 margin beat: 1Q26 luck-adjusted EBITDA margin reached 23.7% versus (as of 12 May 2026)

c22% in 2025. Based on our estimate, reinvestment rate was down c2ppt MARKET DATA

sequentially, but Galaxy defended its market share at c20%. Management remains Market cap (HKDm) 141,625 Free float 38%

Market cap (USDm) 18,091 BBG 27 HK

targeted and disciplined in marketing strategy and expects opex to stay stable at 3m ADTV (USDm) 53 RIC 0027.HK

USD3.7m/day. Hence, we leave our estimates largely unchanged and think continual

FINANCIALS AND RATIOS (HKD)ramp up of Capella and Horizon Plus along with strict cost management will support Year to 12/2025a 12/2026e 12/2027e 12/2028e

EBITDA growth this year. In the medium term, Galaxy is still finalizing workforce HSBC EPS 2.64 2.69 2.91 3.09

HSBC EPS (prev) 2.64 2.69 2.92 3.10

plans for phase 4; hence, Galaxy thinks it is too early to forecast opex or margin level Change (%) 0.0 0.1 -0.5 -0.4

in 2027/2028. Our unchanged TP of HKD48.5 implies 50% upside; we retain Buy. Consensus EPS 2.53 2.66 2.83 3.07

PE (x) 12.3 12.0 11.1 10.5

Looking ahead: Strong momentum in the high-end segment has continued post Dividend yield (%) 4.6 5.0 5.5 5.8