Haitong International released a research report stating that Galaxy Entertainment's first-quarter performance met expectations, with its high-end business continuing to grow. In the first quarter, the company achieved net revenue of HK$124 billion, a year-on-year increase of 10.7%. Adjusted EBITDA reached HK$35.8 billion, up 8.5% year-on-year, corresponding to an adjusted EBITDA margin of 28.8%, a slight decrease of 0.6 percentage points compared to the same period last year. Overall, the first-quarter results aligned with market expectations. Based on comparable company valuations, the firm assigns Galaxy Entertainment an 8.5x EV/EBITDA multiple for 2026, lowering the target price from HK$47.3 to HK$41.5 while maintaining an "Outperform" rating.

In the first quarter, Galaxy Entertainment's gross gaming revenue amounted to HK$127.3 billion, rising 16.4% year-on-year, surpassing the industry growth rate of 14%. The high-end segment continued to expand during the period, with VIP and premium mass business currently accounting for 53% of GGR. Within the mass market segment, the ratio between base mass and premium mass is approximately 55:45. Galaxy Entertainment's market share for the first quarter was 19.9%, down 1.8 percentage points sequentially but up 0.4 percentage points year-on-year, returning to a normalized level.

The report noted that during the May Day holiday period, Galaxy Entertainment's hotels, dining, and visitor traffic showed strong performance. The second fiscal quarter's results may be impacted by the World Cup in June and July. The company is adding events such as concerts and UFC to attract customer flow. It is projected that Galaxy Entertainment's net revenues for 2026 to 2028 will be HK$517.23 billion, HK$562.05 billion, and HK$616.2 billion, representing year-on-year growth of 5%, 8.7%, and 9.6%, respectively. Adjusted EBITDA is forecasted to be HK$147.2 billion, HK$160.19 billion, and HK$174.28 billion for those years, with adjusted EBITDA margins of 28.5%, 28.5%, and 28.3%.