Galaxy Ent 0027 / Lui Chee Woo

[winston]

not vested

Galaxy Entertainment (27 HK) - All eyes on recovery pace

Galaxy reported its first quarterly LBITDA of HKD1,370mn in 2Q20 (1Q20: EBITDA of HKD283mn) with a 92% q/q decline in gross gaming revenue (GGR).

The increased EBITDA contribution from the construction materials business (+57% q/q) partly offset the loss from its casino operations.

Efficient cost control further reduced the daily operating expenses to USD2.5mn in 2Q from USD3mn in 1Q.

The lower cost base should lead to a faster breakeven when traffic normalises.

After the relief rally amid announcement of travel visa resumption, all eyes are now on the pace of recovery.

We expect GGR to pick up more notably in September after the travel approvals in Guangdong province resume, which contributed 46% of Mainland Chinese visitations in Macau in 2019.

Galaxy continues to be our preferred sector pick in the long run. It is the only casino operator in Macau with a net cash position, which allows the company to survive more than 5 years without any revenue and continued to invest during the downturn.

Given its local background, it should subject to relatively lower risk upon licence renewal in mid-2022.

However, after its recent outperformance, we suggest waiting for a better entry point. HOLD.

Source: OCBC

[winston]

ANNOUNCEMENT ON CERTAIN SELECTED UNAUDITED KEY PERFORMANCE INDICATORS FOR THE FIRST QUARTER ENDED 31 MARCH 2021

Our balance sheet continues to remain healthy with HK$42.4 billion in cash and liquid investments as at the end of Q1 and HK$33.6 billion of net cash.

Total debt was HK$8.8 billion, including HK$8.3 billion associated with our treasury yield enhancement program and HK$0.5 billion of core debt.

https://www1.hkexnews.hk/listedco/listc ... 300213.pdf

[winston]

not vested

GALAXY ENT (00027.HK) Sees Turnaround 2Q to Post Adj. EBITDA at $1.1B

GALAXY ENT (00027.HK) +1.100 (+2.254%) announced the results for the second quarter ended 30 June 2021.

The group's net revenue amounted to HK$5.6 billion, up 366.7% YoY.

The adjusted EBITDA of HK$1.1 billion also improved versus the HK$1.4 billion loss in Q2 2020.

Dividend History
Announce Date Event Particular
2021/02/25 Final No Dividend
2020/08/13 Interim No Dividend
2020/02/27 Final SD:HKD 0.4500
2020/02/27 Final No Dividend

HSBC Global Research Upgrades GALAXY ENT (00027.HK) to Buy, Trims Casinos' TPs

Source: AAStocks Financial News

[winston]

not vested

Galaxy chalks up $947m turnaround

by Aiden He

Galaxy Entertainment Group (0027) turned loss to a net profit of HK$947 million in the first half of 2021, compared to a net loss of HK$2.86 billion from a year ago.

Its adjusted earnings before interest, taxes, depreciation and amortization in the period were HK$2 billion, versus the loss of HK$1.1 billion from last year.

No dividend was declared given the ongoing impact of Covid-19, the company said.

Its revenue at HK$10.67 billion was 71 percent higher than a year ago.

Total gross gaming revenue on a management basis in the first half was HK$9.7 billion, up 62 percent year-on-year.

Total mass table gross gaming revenue doubled to HK$5.9 billion, and total VIP gross gaming revenue rose 26 percent to HK$3.5 billion.

The electronic gross gaming revenue increased by 27 percent to HK$333 million.

The gaming company said its cash and liquid investments were HK$43 billion and the total debt was HK$11.4 billion as of June 30.

Raffles at Galaxy Macau in Cotai, which will feature an approximate 450 all-suite tower, is expected to open in early 2022.

The exact date is yet to be decided as the pandemic hovers, and the Cotai Phases 3 and 4 will mainly focus on non-gaming projects, including convention and exhibition center, concert hall, and theme park.

Source: The Standard

https://www.thestandard.com.hk/section- ... turnaround

[winston]

vested

Citi: GALAXY ENT 3Q21E EBITDA Best Among Peers; Sector May Resume Pre-Covid Level in 2023

Citigroup's casino top-pick is GALAXY ENT (00027.HK), which has the best 3Q21 EBITDA among peers.

The broker saw the opening of SJM HOLDINGS (00880.HK)'s Grand Lisboa Palace and sharply expanding EBITDA loss in the quarter.

The 2021 GGR forecast was MOP89.3 billion, representing about 31% of the 2019 level.

The broker expected GGR to recover to MOP168 billion (up around 88% YoY) into 2022, and the sector EBITDA to resume pre-COVID levels in 2023.

Source: AAStocks Financial News

[winston]

not vested

Travel curbs hit casino operator's earnings

by Aiden He

Casino operator Galaxy Entertainment Group (0027) recorded adjusted earnings before interest, taxes, depreciation, and amortization of HK$503 million in the third quarter, compared to a HK$943 million loss a year ago.

But the figure was a 54 percent drop from the HK$1.13 billion recorded in the second quarter as a result of travel restrictions to contain periodic outbreaks of Covid.

Net revenue in the third quarter surged 1.76 times over last year to HK$4.28 billion but dropped 23 percent from the second quarter.

Source: The Standard

https://www.thestandard.com.hk/section- ... s-earnings

[winston]

not vested

Galaxy places golden handshake on the table

Gaming companies have launched various measures including voluntary unpaid leave programs to reduce expenses and overstaffing over the past two years but the emergence of the Omicron variant of the coronavirus has made the road of recovery even longer.

Source: The Standard

https://www.thestandard.com.hk/section- ... -the-table

[winston]

not vested

'Lucky' dividend as Galaxy swings to $1.3b profit

by Themis Qi

Galaxy Entertainment (0027) swung to a net profit of HK$1.33 billion last year on the back of an improvement in tourist numbers, compared to a loss of HK$3.97 billion a year earlier.

Revenue increased 53 percent to HK$19.7 billion, mainly due to the 51 percent growth to HK$17.3 billion from the gaming business.

Source: The Standard

https://www.thestandard.com.hk/section- ... .3b-profit

[winston]

not vested

Macau casino firm Galaxy Entertainment’s turnaround shows sector has winning hand, even if Covid-19 dominates near term, analysts say

Galaxy has also announced a special dividend of 30 Hong Kong cents per share

Other companies, however, are not expected to pay dividends in the near term, Morningstar analyst says

by Martin Choi

Net profits of HK$1.33 billion (US$170 million) for the full year of 2021 from a HK$3.9 billion loss in 2020.

Galaxy had net cash of HK$27 billion at the end of December, the highest among its peers.

Morningstar expects Macau’s gaming revenues to recover to 45 per cent and 70 per cent of 2019 levels in 2022 and 2023, respectively, and reach a full recovery by the end of 2024.

Source: SCMP

https://www.scmp.com/business/article/3 ... sector-has

[winston]

not vested

GALAXY ENT 3Q Adj. EBITDA Swings into $581M Loss; Net Cash $19.3B

GALAXY ENT (00027.HK) announced that, over the third quarter of 2022, the group's net revenue was $2.034 billion, down 52.5% YoY and 16.1% QoQ.

The adjusted EBITDA loss was $581 million, compared to earnings of $503 million in the corresponding period of the previous year.

Dividend History
Announce Date Event Particular
2022/08/18 Interim No Dividend
2022/02/23 Final SD:HKD 0.3000
2022/02/23 Final No Dividend
2021/08/12 Interim No Dividend

As of 30 September 2022, cash and liquid investments were $22.5 billion and net cash was $19.3 billion.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6