In "Major Banks," CICC lowers Galaxy Entertainment's adjusted EBITDA forecast for the next two years while maintaining an "Outperform" rating

CICC pointed out that Galaxy Entertainment (00027.HK) reported a 14% year-on-year increase in revenue for the third quarter to HKD 12.163 billion, which is 96% of the same period in 2019; adjusted EBITDA rose 14% year-on-year to HKD 3.341 billion, which is 81% of the same period in 2019, in line with market expectations of HKD 3.321 billion. The firm believes that Galaxy Entertainment's performance is affected by increased operating expenses due to intensified market competition and the normalization of VIP room win rates.

Based on the increase in operating expenses, the firm has lowered its adjusted EBITDA forecasts for Galaxy Entertainment for this year and next year by 1% and 3%, to HKD 14.031 billion and HKD 14.923 billion, respectively. The firm maintains a "outperform the industry" rating for Galaxy Entertainment, with a target price of HKD 44.8