In "The Big Banks," Citigroup: Galaxy Entertainment's profit margin in the third quarter may be under pressure, and the full-year earnings forecast is lowered by 4%

Citi published a research report indicating that Galaxy Entertainment (00027.HK) is still expected to face margin pressure in the third quarter. It currently forecasts a 10% year-on-year growth in adjusted EBITDA for the third quarter, with the adjusted EBITDA margin expected to reach 26.1% in the next quarter, narrowing by 1.5 percentage points compared to the same period last year.

Taking into account the reinvestment expenditures and operating costs of the gaming and construction businesses, Citi has lowered its forecasts for Galaxy Entertainment's full-year net income, adjusted EBITDA, and net profit by 0.3%, 2.6%, and 4%, respectively, while maintaining the forecasts for 2026 and 2027. The target price remains at HKD 50.5, with a rating of "Outperform," continuing to be listed as one of the two top picks in the industry