Daiwa Capital Markets has raised Galaxy Entertainment's EBITDA forecast for the next two years, with the target price increased to HKD 49

AASTOCKS
2026.02.27 08:29

Daiwa Capital Markets published a research report stating that Galaxy Entertainment (00027.HK) saw a 14% quarter-on-quarter increase in gaming revenue in the fourth quarter of last year, outperforming the industry growth rate of approximately 6%, and recovering to about 97% of 2019 levels. It is estimated that Galaxy Entertainment's market share in gaming revenue increased by 1.6 percentage points quarter-on-quarter to 21.8%. The report considers the previous quarter's performance to be mixed, with strong growth in gaming revenue and market share, but disappointing profit margins, as the adjusted normalized EBITDA margin fell by 1.6 percentage points quarter-on-quarter.

Daiwa Capital Markets also noted that the data from this year's Lunar New Year holiday is encouraging, performing better than last year's Lunar New Year and last October's Golden Week. Management also expects the momentum to remain strong in March and the first quarter overall, and has committed to continuously reviewing the dividend policy. Accordingly, the firm has raised its EBITDA forecasts for Galaxy Entertainment for 2026 and 2027 by 1% each, maintaining a "Buy" rating and raising the target price by 4% to HKD 49

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