not vested
GALAXY ENT(27)
Analysis:
For the six months ended 30 June 2022, net revenue amounted to HK$6.5 billion, representing a decrease of 39% YoY.
Adjusted EBITDA amounted to HK$ 191 million, representing a decrease of 90% YoY.
Net Loss Attributable to Shareholders of HK$850 million, versus profit of HK$947 million in 1H 2021.
The group successfully obtained a 10 year casino licenses renewal, eliminating uncertain factors.
In addition, over the past three years, the anti-epidemic policies have greatly reduced the number of visitors to Macau, causing a sharp drop in the revenue of gambling companies including Galaxy Entertainment.
However, we expect anti-epidemic policies will be relaxed slowly, which will benefit Galaxy Entertainment`s business recovery.
Strategy:
Buy-in Price: $43.05, Target Price: $48.00, Cut Loss Price: $39.00
Source: Phillips