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Galaxy Entertainment Group (HK:0027)
:0027
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Galaxy Entertainment Group
(OTC:0027)
Rating:78Outperform
Price Target:
HK$40.00
▼(-1.82% Downside)
Positive Factors
Earnings
Galaxy's 2Q25 Corp. EBITDA is expected to grow 8% YoY, which is 11% above consensus expectations.
Expansion
Strong net cash of over HKD16bn supports expansion, enabling new luxury hotels to further add capacity.
Market Share
Galaxy gained market share supported by the newly added capacity at Capella.
Negative Factors
Financial Performance
1Q25 hold-adjusted corporate EBITDA was 4% below MSe.
Revenue
Mass GGR excl. City Clubs dropped 6% QoQ, at 120% of 1Q19, vs -2% of the industry.
Galaxy Entertainment Group (0027) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$178.15B
Dividend Yield2.45%
Average Volume (3M)14.15M
Price to Earnings (P/E)20.3
Beta (1Y)0.86
Revenue Growth17.34%
EPS Growth28.21%
CountryHK
Employees21,100
SectorConsumer Cyclical
Sector Strength72
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.47
Shares Outstanding4,374,894,500
10 Day Avg. Volume14,205,462
30 Day Avg. Volume14,148,714
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$45.06Price Target Upside10.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Galaxy Entertainment Group Business Overview & Revenue Model
Company DescriptionGalaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China. The company operates casino games of chance or games of other forms; and provides hospitality and related services. It owns and operates Galaxy Macau, an integrated resort; Broadway Macau, a landmark entertainment and food street destination; StarWorld Macau, a five-star hotel located in the Macau Peninsula; and City Club casinos. The company also manufactures, sells, and distributes construction materials, including concrete pipes and piles, asphalt, ready-mixed concrete, concrete products, cement, aggregates, and slag; provides property investment, handling, quality assurance, project management, and security services; and imports, exports, trades in, and transports construction materials. In addition, it is involved in quarrying, aircraft holding, and vessel holding activities. The company is based in Central, Hong Kong.
How the Company Makes MoneyGalaxy Entertainment Group generates revenue primarily from its casino operations, which include a wide range of gaming options such as VIP gaming, mass table games, and slot machines. The gaming revenue is the largest contributor to the company's earnings. In addition to gaming, the company earns income through its hospitality and entertainment services, which include hotel room bookings, food and beverage sales, retail shopping, and entertainment events. Significant partnerships with luxury brands and entertainment companies enhance its offerings and draw a diverse clientele, further boosting its revenue. The company's strategic location in Macau, a major global gambling hub, plays a crucial role in attracting tourists and gaming enthusiasts, thereby contributing to its financial success.
Galaxy Entertainment Group Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2024)
| % Change Since: 37.06%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue and EBITDA growth, strategic market penetration, and effective cost management, alongside increased dividends and visitation rates. However, there are challenges such as slight underperformance in gaming luck and intense market competition. Overall, the sentiment is positive with a focus on growth and confidence in the market.Q2-2024 Updates
Positive Updates
Significant Revenue and EBITDA Growth
GEG reported revenue of $10.9 billion, up 26% year-on-year and 3% quarter-on-quarter. Adjusted EBITDA was $3.2 billion, up 28% year-on-year and 12% quarter-on-quarter.
Strong Balance Sheet
GEG's balance sheet remained robust with net cash of $25.2 billion as of Q2 2024.
Market Penetration and Expansion
The Central Government expanded the IVS to 59 cities, making Macau more accessible to Mainland Chinese visitors.
Operational Efficiency and Cost Management
OpEx reduced by 2% compared to Q1, with staff costs only up 1% quarter-on-quarter. Staff numbers remained stable at approximately 20,000 people.
Visitation and Market Share Increase
In Q3, visitation to Galaxy Macau grew by over 30% compared to Q2, with August seeing a 50% increase over Q2's average.
Dividend Increase
An interim dividend of $0.50 per share was announced, reflecting strong confidence in Macau's market and GEG's future performance.
Negative Updates
Slightly Unlucky Q2 Performance
The company played slightly unlucky in Q2, decreasing adjusted EBITDA by $20 million.
Challenges in Market Competition
The market remains intensely competitive, requiring ongoing adjustments in reinvestment into customer segments.
Company Guidance
During the Q2 2024 earnings call for Galaxy Entertainment Group (GEG), several key metrics and strategic initiatives were highlighted. GEG reported a revenue of $10.9 billion, marking a 26% year-on-year and 3% quarter-on-quarter increase, while adjusted EBITDA reached $3.2 billion, representing a 28% year-on-year and 12% quarter-on-quarter rise. The company maintained a strong balance sheet with a net cash position of $25.2 billion as of Q2 2024, and declared an interim dividend of $0.50 per share. GEG's Mass revenue was 114% of 2019 levels, with Galaxy Macau's Mass business achieving 134-137% of 2019's levels. Strategic initiatives included the installation of smart tables, which began in early July, and the expansion of facilities such as Capella at Galaxy Macau. GEG also noted a disciplined approach to cost management, with total OpEx down 2% from Q1 and staff costs representing around 75% of OpEx. The company remained committed to enhancing customer experience and capturing growth in the Asian market.Galaxy Entertainment Group Financial Statement Overview
Summary
Galaxy Entertainment Group demonstrates strong financial performance with robust recovery in revenue and profitability post-pandemic. The company maintains a solid balance sheet with low leverage, high equity ratio, and effective cash flow management. These factors position the company well for future growth and resilience in the volatile gambling and resort industry.Income Statement
Galaxy Entertainment Group has shown a strong recovery in revenue and profitability after pandemic-related challenges. The gross profit margin improved significantly, reaching 58.8% in 2024. Net profit margin also increased to 20.2%, indicating strong cost management and operational efficiency. Revenue growth has been robust, with a significant increase of 88.8% from 2023 to 2024, reflecting a strong rebound in the gambling and resort industry.85
Very Positive
Balance Sheet
The balance sheet reveals a strong equity position, with an equity ratio of 80.3% in 2024, suggesting financial stability and low leverage. The debt-to-equity ratio remains low at 0.06, indicating prudent financial management. Return on equity is impressive at 11.5%, highlighting effective use of shareholder funds to generate profits.80
Positive
Cash Flow
Cash flow from operations remained strong in 2024, with an operating cash flow to net income ratio of 1.32, indicating efficient cash generation from core operations. Free cash flow showed healthy growth of 18.6% from 2023 to 2024, supporting future investment and debt servicing. However, historical fluctuations in cash flow should be monitored.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.43B | 23.00B | 8.40B | 12.95B | 8.39B |
| Gross Profit | 25.54B | 8.97B | -779.32M | 3.43B | -2.31B |
| EBITDA | 12.62B | 9.91B | -1.16B | 3.47B | -1.36B |
| Net Income | 8.76B | 6.83B | -3.43B | 1.33B | -3.97B |
Balance Sheet | |||||
| Total Assets | 94.58B | 87.22B | 80.96B | 85.24B | 92.73B |
| Cash, Cash Equivalents and Short-Term Investments | 22.42B | 17.15B | 16.35B | 21.44B | 18.31B |
| Total Debt | 4.85B | 2.16B | 7.99B | 6.87B | 9.58B |
| Total Liabilities | 18.19B | 16.00B | 16.50B | 16.17B | 24.69B |
| Stockholders Equity | 75.95B | 70.76B | 63.91B | 68.42B | 67.42B |
Cash Flow | |||||
| Free Cash Flow | 6.68B | 5.63B | -8.04B | -10.39B | -13.40B |
| Operating Cash Flow | 11.55B | 11.59B | -2.98B | -3.49B | -7.63B |
| Investing Cash Flow | -4.75B | -10.67B | 3.04B | 4.58B | 9.50B |
| Financing Cash Flow | -1.98B | -7.81B | -155.89M | -2.41B | 6.77B |
Galaxy Entertainment Group Technical Analysis
Positive
40.74
Price Trends
36.20
Positive
33.06
Positive
32.74
Positive
Market Momentum
1.15
Negative
68.12
Neutral
84.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0027, the sentiment is Positive. The current price of 40.74 is above the 20-day moving average (MA) of 38.38, above the 50-day MA of 36.20, and above the 200-day MA of 32.74, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 84.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0027.
Galaxy Entertainment Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$178.15B | 20.34 | 11.92% | 2.45% | 17.34% | 28.21% | |
77 Outperform | $162.84B | 19.97 | 203.51% | 1.32% | 6.04% | 50.60% | |
66 Neutral | S$1.02B | 39.92 | 6.41% | 2.73% | 6.40% | -20.09% | |
65 Neutral | $33.01B | 10.25 | 4.14% | 16.27% | 172.71% | ||
64 Neutral | $20.66B | 24.20 | 5.24% | ― | 5.15% | -38.63% | |
63 Neutral | $61.48B | 14.23 | 452.88% | 3.75% | 5.59% | -4.38% | |
50 Neutral | $23.58B | 8,300.00 | 0.03% | ― | 31.24% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
HK:0027
Galaxy Entertainment Group
40.74
12.22
42.86%
HK:2282
MGM China Holdings
16.12
5.64
53.82%
HK:1128
Wynn Macau
6.28
1.22
24.18%
HK:1928
Sands China
20.12
6.78
50.84%
HK:0880
SJM Holdings
3.32
0.88
36.07%
HK:3918
NagaCorp
4.67
1.32
39.40%
Galaxy Entertainment Group Corporate Events
Galaxy Entertainment Group Schedules Key Board Meeting for Interim Results
Jul 29, 2025
Galaxy Entertainment Group Limited has announced a board meeting scheduled for August 12, 2025, to approve the unaudited interim results for the first half of the year and discuss potential dividends. This meeting is significant as it will provide insights into the company’s financial health and strategic decisions, impacting stakeholders’ perceptions and the company’s market positioning.
The most recent analyst rating on (HK:0027) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.
Galaxy Entertainment Group Grants 524,000 Share Awards to Employees
Jul 11, 2025
Galaxy Entertainment Group Limited has announced the grant of 524,000 share awards to certain employees, including an executive director, under its share award scheme. The awards are intended to incentivize employees and align their interests with shareholders, promoting long-term financial success. The grant does not include performance targets or clawback mechanisms, and the remuneration committee considers the terms fair and in line with market practices.
The most recent analyst rating on (HK:0027) stock is a Buy with a HK$51.50 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.