Galaxy Ent 0027 / Lui Chee Woo

[winston]

vested

Oct 8, 2018

<Research Report>M Stanley Cuts Macau 2019 GGR Growth Forecast to 5%, Downgrades GALAXY ENT

Morgan Stanley opined that weak 3Q18 results estimates indicated a potential plunge of Macau gaming stocks, despite higher visitor arrivals during Golden Week and relatively low valuation for these stocks.

The broker preferred SANDS CHINA LTD (01928.HK) to GALAXY ENT (00027.HK) in the short run.

SANDS CHINA LTD was upgraded from Equalweight to Overweight with price target down from $46 to $44, thanks to its higher mass exposure, strong 3Q18 outlook and higher dividend payout.

In contrast, GALAXY ENT was downgraded from Overweight to Equalweight with price target down from $80 to $54.5.

The broker pointed out that GALAXY ENT's a higher exposure to VIP and premium mass, will likely be affected by the decelerating 3Q18 growth in VIP revenue.

Morgan Stanley revised Macau's 2019 GGR growth forecast down to 5% (from 12%) YoY and US$39.469 billion (from US$43.159 billion).

The 2019 growth for VIP and mass revenue had also been lowered to 0% (from 11%) YoY and 9% (from 13%) YoY, respectively.

Source: AAStocks Financial News

[winston]

not vested

<Result Ann>GALAXY ENT 3Q Adjusted EBITDA Up 10% YoY to HK$3.9B

GALAXY ENT (00027.HK) announced that for the third quarter ended 30 September, the group?s net revenue increased 6% year-on-year to HK$13 billion.

Adjusted EBITDA increased 10% year-on-year to HK$3.9 billion.

GEG played unlucky in its gaming operations during the period. Normalized 3Q18 adjusted EBITDA grew 16% year-on-year to HK$4.2 billion.

Source: AAStocks Financial News

[winston]

vested

Galaxy Entertainment moves on with Hengqin resort concept plan

Galaxy Entertainment Group (0027) says it is "continuing to move forward'' with the development of stages three and four in Cotai, which will include 4,500 hotel rooms, including family and premium high end rooms.

There will also be 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, food and beverage, retail and casinos, among others.

In Hengqin, GEGE said it continues to make progress with the concept plan.

Hengqin will allow GEG to develop a low density leisure destination resort that will complement our high energy resorts in Macau.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... r=20181025

[winston]

vested

Galaxy Entertainment (27 HK)
3Q18: The Leader Slips On Poor Luck And Competition

Galaxy lost market share as its GGR growth (+6.9% yoy) decelerated below the Macau industry’s 10.2% in 3Q18 due to reduced win rates and Sands China and MGM China’s offensive into the VIP space.

Its adjusted EBITDA growth decelerated to 10.1% yoy at HK$3,877m (hold-adjusted: +16% yoy).

Key positive is that management sees gaming volume growth at double digits for both VIP and mass so far in October. Maintain BUY with a lower target price of HK$53.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 0d6941b885

[winston]

vested

3Q18 results: Near-term strong

GEG’s 3Q18 EBITDA was HK$3.9m (+10% yoy, -10% qoq), 1% above our expectations.

Despite macro headwinds, management remains confident about the nearterm outlook for gaming demand in Macau.

Maintain Add with a reduced target price, based on SOP. Our target FY19F EV/EBITDA multiple reduced from 19x to 12.5x (in-line with 10-year average)

Source: CIMB

https://brokingrfs.cimb.com/7ixvmHnZRLS ... TaCrQ2.pdf

[winston]

vested

<Research Report>G Sachs: GALAXY ENT (00027.HK) Rated Buy on In-line QoQ Results

Goldman Sachs' report pointed out that GALAXY ENT (00027.HK) 3Q18 adjusted EBITDA dropped 10% quarterly to $3.879 billion, in-line.

The broker reiterated Buy on GALAXY ENT at the target price $65.2, trimmed from $65.5.

Goldman Sachs opined that the current value tends to be undemanding after recent share buybacks.

It continued to prefer GALAXY ENT over WYNN MACAU (01128.HK).

Source: AAStocks Financial News

[winston]

vested

<Research Report>BofAML Rates GALAXY ENT (00027.HK) at Buy with TP Up to $62

GALAXY ENT (00027.HK)'s adjusted 3Q EBITDA rose 10% YoY to $3.879 billion, beating the projection of Bank of America Merrill Lynch and market.

The group's VIP and mass businesses registered double-digit growth at 15-20%, as the research house learnt from the results conference call during National Day Golden Week.

Bank of America Merrill Lynch believed the market share loss in 3Q is temporary, instead of a trend, based on past record.

The target price was lifted to $62 from $61.2 with rating reiterated Buy.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Broker: GALAXY ENT (00027.HK) VIP Biz Still Healthy, Expects Stable Outlook

GALAXY ENT (00027.HK) has an overall steady outlook, backed by visitation growth after the debut of the Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge, as Morgan Stanley quoted from the company's management.

GALAXY ENT's VIP business remains healthy, despite competition from Filipino and Cambodian markets.

With the opening of a new VIP club in Ritz Carton, the operator has witnessed decent direct VIP growth.

GALAXY ENT was rated Equalweight at a $54.5 price target.

Source: AAStocks Financial News

[winston]

not vested

NDR feedback

We hosted an NDR for GEG on 26-27 Nov in Kuala Lumpur. The majority of the investors we met with held a cautious view on the sector.

Management remains upbeat on the company’s earnings growth drivers and the longer-term outlook for Macau’s gaming sector.

Maintain Add with an unchanged target price of HK$59.62 based on SOP valuation. A potential catalyst is stronger-than-expected sector GGR.

Source: CIMB

https://brokingrfs.cimb.com/jgMC_VQUoAy ... DrlmQ2.pdf