A research report from JPMorgan indicates that GALAXY ENT (00027) announced its full-year results for the period ending December last year. The fourth-quarter performance surpassed market expectations, which had already been raised, with market share increasing by 160 basis points quarter-on-quarter to 21.7%, and profits expanding by 29% compared to the previous quarter. A final dividend of HK$0.8 per share implies a payout ratio of 61% for fiscal year 2025, representing a solid performance that aligns with JPMorgan's expectations. However, some bulls hoping for a higher payout ratio may feel slightly disappointed by the dividend. JPMorgan maintains an "Overweight" rating on GALAXY ENT, considering it a top pick within the sector, with a target price of HK$52. The firm holds a "selective" view on the industry.

JPMorgan noted that no particularly negative factors were identified in the earnings report. However, to comment, the final dividend of HK$0.8 brings the total dividend for fiscal 2025 to HK$1.5, which might leave some optimistic investors somewhat disappointed. Yet, based on recent discussions with investors, some had anticipated a larger increase. It is expected that dividends will be progressively raised in the future, with potential positive news possibly coming when the company announces its interim results for fiscal 2026 in August.