Dahua Jixian: Lowering Galaxy Entertainment's (00027) target price by 9% to HK$43 to maintain a “buy” rating

The Zhitong Finance App learned that Dahua Jixian released a research report stating that it will reduce the target price of Galaxy Entertainment (00027) by 9% from HK$47 to HK$43 to maintain the “buy” rating. The bank pointed out that Galaxy Entertainment's total gaming revenue market share increased by 1.7 percentage points quarterly to 22.0% in the third quarter of 2026, but adjusted EBITDA fell 9% quarterly due to declining profit margins.

Galaxy Entertainment's market share during Golden Week was basically the same as the same period last year, mainly affected by adverse factors in the high-end market. Looking ahead, management remains cautiously optimistic about the fourth quarter of 2026, and consumer confidence is expected to improve before the end of the year.

In terms of project construction, the fourth phase of the Galaxy Entertainment project will still be completed by the end of 2027 as planned. At that time, about 1,350 new suites will be added, and no new gaming tables have yet been allocated. Its Starworld Hotel renovation project is expected to reduce EBITDA by approximately HK$20 million in the fourth quarter of 2026, and the project is scheduled to be completed in the first quarter of 2027.