Galaxy Entertainment Group (0027) AI Stock Analysis

• Market Cap: HK$181.56B
• Dividend Yield: 2.41%
• Average Volume (3M): 12.24M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.84
• Revenue Growth: 4.94%
• EPS Growth: 15.35%
• Country: HK
• Employees: 21,100
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.68
• Shares Outstanding: 4,374,896,000
• 10 Day Avg. Volume: 9,865,890
• 30 Day Avg. Volume: 12,243,313
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$50.48
• Price Target Upside: 21.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: HK$40.00 ▼(-3.66% Downside)

Galaxy Entertainment Group scores strongly due to its robust financial recovery and solid technical indicators. The company benefits from strong revenue growth and profitability, supported by effective cost management and a strategic market position. The technical analysis indicates bullish trends, while the valuation remains fair, providing a balanced investment opportunity.

Positive Factors

Financial Performance

Galaxy Entertainment Group reported robust results with net revenue rising and adjusted EBITDA increasing, outpacing sector peers.

Growth Potential

Galaxy Entertainment Group is well-positioned for growth with ample funding to support ongoing investments.

Market Position

Galaxy Entertainment Group gained market share through the quarter, supported in part by the newly added capacity at Capella.

Negative Factors

Gaming Revenue

Mass GGR excl. City Clubs dropped 6% QoQ, at 120% of 1Q19, vs -2% of the industry.

Operational Performance

1Q25 hold-adjusted corporate EBITDA was HK$2,966mn (-9% QoQ, +7% YoY, 77% of 1Q19), 4% below MSe.

Galaxy Entertainment Group Business Overview & Revenue Model

Company Description

Galaxy 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 Money

Galaxy 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 41.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 41.52 is above the 20-day moving average (MA) of 40.70, above the 50-day MA of 39.29, and above the 200-day MA of 33.46, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 60.97 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	78 Outperform	HK$181.56B	18.89	12.59%	2.41%	4.94%	15.35%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
SJMHF	―	$2.66B	4,310.00	-0.12%	―	―	―
MCHVF	―	$7.72B	14.10	452.88%	3.52%	―	―
NGCRF	―	$3.58B	13.57	11.98%	1.26%	―	―
SCHYF	―	$20.70B	22.15	111.35%	2.55%	―	―
WYNMF	―	$4.56B	19.19		5.39%	―	―

Galaxy Entertainment Group Corporate Events

Galaxy Entertainment Group Announces Change in Company Secretary

Galaxy Entertainment Group Limited announced a change in its company secretary and authorized representative. Mrs. Sin Li Mei Wah, Jenifer will retire from her role, and Mr. Chong Wai Sang, a qualified lawyer with extensive experience in corporate and commercial legal matters, will take over the position effective 13 August 2025. This change is expected to support the company’s compliance and operational efficiency.

Galaxy Entertainment Group Reports Strong H1 2025 Results Amidst Global Challenges

Galaxy Entertainment Group reported robust financial performance for the first half of 2025, with significant growth in revenue and EBITDA despite global economic challenges. The company continues to strengthen its market position through strategic enhancements in its properties and hosting high-profile entertainment events, contributing to increased foot traffic and customer engagement. The closure of Waldo Casino will see employees reallocated within the company, while GEG’s recent accolades underscore its leadership in the integrated resort and gaming sectors.

Galaxy Entertainment Declares Interim Dividend for 2025

Galaxy Entertainment Group Limited has declared an interim dividend of HKD 0.7 per share for the financial year ending December 31, 2025, with the payment date set for October 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations positively.

Galaxy Entertainment Group Schedules Key Board Meeting for Interim Results

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.

Galaxy Entertainment Group Grants 524,000 Share Awards to Employees

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.