Galaxy Ent 0027 / Lui Chee Woo

Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Fri Feb 10, 2017 10:12 am

Solid operation underappreciated; re-iterate sector top pick

Galaxy’s strong operating performance is underappreciated by the market, in our view. Five reasons to accumulate Galaxy now are
as follows.

(1) Solid operation: we estimate Galaxy's 4Q16 VIP to grow 13-15% QoQ and mass +8% QoQ, outperforming peers despite new
competitors entering in 4Q.

(2) Most room for earnings upgrade: we expect Galaxy’s 4Q16 EBITDA to reach ~HK$2.83 bn, +8% QoQ. Annualising 4Q16E and assuming no more sequential improvement, it could already achieve HK$11.3 bn EBITDA (vs cons HK$10.6 bn). CS’ FY17E EBITDA is 16% above consensus.

(3) Best positioned for industry recovery which is currently driven by mid-end premium mass and VIP.

(4) Catalysts: earnings upgrade post results on 28 February, solid industry GGR that dismisses investors’ concern and easy YoY comparison starting from March.

(5) Undemanding valuation: Galaxy is currently trading at 11x2017E EBITDA vs its long-term average of 13x and peers' 12.5x.
Ex-net cash, it is trading at 17x FY17 P/E. We re-iterate our OUTPERFORM call and Galaxy is our sector top pick.

Source: CS
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Mon Feb 13, 2017 12:03 pm

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<Research Report>JPM Rates GALAXY ENT (00027.HK) at Overweight with Target Lifted to $42

JP Morgan, in its report, expected GALAXY ENT (00027.HK) 4Q16 results to be strong.

It is forecast that adjusted EBITDA will see a quarterly and yearly growth of 7% and 16% to $2.871 billion, being the highest for over two years.

Despite the market concern on competitive pressure from new opening, it is believed that the group's Galaxy Macau and StarWorld may continue to report strong performance, with GGR of 37% rise yearly.

The research house lifted the target price to $42 from $41.5, with a rating of Overweight, still being an industry top pick.

Source: AAStocks Financial News
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Wed Mar 01, 2017 6:34 am

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Galaxy mulls Japan ventures

Galaxy Entertainment Group (0027) chairman Lui Che-woo said the Macau casino operator plans to develop giant projects in Japan, leveraging on the Lui family's 50-year relationship with the country's hotel industry.

The company posted a better-than- expected 51 percent year-on-year rise in 2016 net profitto HK$6.28 billion, thanks to a recovery in the world's biggest gambling hub.

Full-year revenue amounted to HK$52.8 billion, up slightly from HK$51 billion a year earlier as the casino market experienced a shift in the mix of gaming revenue from VIP to the mass market, the company said.

"We were encouraged by the last five months of 2016, where Macau experienced modest growth in gross gaming revenue. We hope that this will develop into a definitive trend over the course of 2017 and beyond," it said.

Deputy chairman Francis Lui Yiu- tung said at a meeting with the media after the results that Galaxy expects to post double digit growth in Macau gaming revenue this year.

Multi-billion US dollar casino openings by Sands China (1928) and Wynn Macau (1128) had helped attract VIP customers whose numbers have dwindled since the start of 2014 when the government began a campaign against shows of wealth by public officials.

In January, gambling revenue rose 3.1 percent
to 19.3 billion patacas (HK$18.74 billion), getting a boost from a national holiday at the end of that month.

Hong Kong-listed Galaxy said that for the first time in 10 years, overnight visitors to Macau had exceeded same-day visitor arrivals, thanks to new hotel capacity.

Galaxy still has around half of its land area to build out on Cotai, which it expected to start at the end of the first quarter, and has said it will expand non- gaming facilities in the neighboring island of Hengqin.

Galaxy closed up 0.3 percent.

Source: REUTERS
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Wed Mar 01, 2017 11:30 am

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<Research Report>JPM: GALAXY ENT (00027.HK) Target Lifted to $44 on Strong Results Last Quarter

GALAXY ENT (00027.HK) released the fourth quarter of 2016 (4Q16) and 2016 results yesterday (28 February). JPMorgan, in its report, said Galaxy's EBITDA beat consensus by about 7%.

Despite competitors' new openings, Galaxy still posted market share growth.

Non-gaming segment also showed solid performance with near-record margins.

The result was better than expected due to great execution, and valuations look undemanding, so the broker reiterated Galaxy as one of its top picks, with target price lifted from $42 to $44 and rating Overweight.

Source: AAStocks Financial News
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Wed Mar 01, 2017 11:32 am

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<Research Report>C Suisse: GALAXY ENT (00027.HK) 4Q16 Results Top Estimates; Target Raised to $50

Credit Suisse, in its report, said that 4Q16 GALAXY ENT (00027.HK) performance reflected its stable mass, market share and profit.

Mass revenue gained 5% quarterly, with 10% growth in EBITDA.

Full year profit escalated 51%, in which the revenue for StarWorld also saw a rise, despite being operated for ten years.

The research house said that GALAXY ENT was industry top pick due to appealing valuation, solid operation and demand recovery of high-end customers.

The rating was maintained at Outperform and the target price was lifted to $50 from $47.5.

Source: AAStocks Financial News
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Wed Mar 01, 2017 12:13 pm

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Luck Shines Upon Galaxy Entertainment

By Shuli Ren

Galaxy Entertainment (27.Hong Kong) soared 3.1% on Wednesday, the second most traded stock in Hong Kong, after the Macau casino operator reported better-than-expected December quarter earnings.

In the December quarter, gross gaming revenue grew 12% from the September quarter, above the overall market growth of 10%.

As a result, net revenue at Galaxy Entertainment rose 11% from the September quarter, while earnings before interest, taxes, depreciation and amortization gained 10% to 3 billion Hong Kong dollars.

With casino revenues in Macau plummeting thanks to Beijing’s anti-corruption crackdown and a slowdown in the Chinese economy, the gambling hub is seeking to reinvent itself as a family-friendly mass market destination as the high rollers stay away.

Investors were also encouraged by management’s more optimistic outlook on Macau.

However, half of the earnings growth came from good luck.

Bernstein Research‘s Vitaly Umansky wrote:

However, Galaxy EBITDA was helped by good luck across all three properties by HK$150mm. Hold-normalized EBITDA would have been HK$2.81 bn (+5% q/q hold-adjusted for both Q’s), a positive result but not as impressive as at first glance.

Union Gaming‘s Grant Govertsen likes Galaxy’s results nonetheless, saying the most exciting part about Galaxy’s results was its mass gaming revenue, which grew 15% from a year ago (or 5% from September quarter).

Galaxy is disadvantaged in the new Cotai strip, because the area has added three new casinos in the last year. Meanwhile, Galaxy’s new Phase 2 casino is smaller than its competitors’ new casinos and is more an extension to its old wing than a brand-new casino.

Govertsen wrote:
Clearly Galaxy is hitting its stride as it relates to the all-important segment and we expect continued solid mass trends to continue for the company as we look to the rest of 2017 and into 2018.

We believe the company has hit all the right notes as it has not only reconfigured the gaming floors, but also when contemplating a major revamp of F&B particularly at Galaxy Macau (in addition to human resources, marketing programs, etc.).

The company will soon announce more detailed plans for Phases 3 and 4, which we expect to include more (much-needed for Galaxy) room supply as well as other non-gaming amenities.

This gives Galaxy an extended runway of growth in the out years – with Galaxy being the only Big 6 operator having the ability to meaningfully increase its supply following the current wave of development.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... rtainment/
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Fri May 05, 2017 7:22 am

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Galaxy reports 31pc profit spike

by Samantha Wong

Macau casino operator Galaxy Entertainment Group (0027) posted a 31 percent rise in adjusted Ebitda in the first quarter as wealthy Chinese gamblers flocked back to the world's biggest gambling hub.

Galaxy, one of six listed casino operators in Macau, said adjusted earnings before interest, tax, depreciation and amortization for the first three months of the year was HK$3.2 billion, up from HK$2.4 billion a year earlier.

Macau is the only place in China where citizens are legally allowed to gamble.

Business had dried up in the special administrative region after Chinese President Xi Jinping's campaign against shows of wealth by public officials in 2014 but the opening of new resorts in the second half of last year has helped revive demand from high rollers as well as casual gamblers.

Lui Che-woo, Galaxy founder and chairman, said the gaming industry in Macau is growing steadily this year and the group is interested in bidding for the Japanese casino license.

"Galaxy hopes to expand its gambling business in Japan, and the group has already set up a Japanese branch office with the Monte Carlo Group, but the business plan is yet to be confirmed," Lui said.

Executive director Francis Lui Yiu- tung said Galaxy is currently awaiting approval from the Macau government of the phase three and four expansion its flagship project in Cotai Strip. The expansion project is expected to be completed in 2019.

Source: The Standard
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Fri Jun 09, 2017 2:06 pm

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Galaxy Entertainment: Market-Perform with TP HK$44.00

Galaxy continues to improve its Mass operations at Galaxy Macau and Star World while maintaining a leadership position in VIP.

Over the medium term, the key value driver is operating leverage improvement and improving business mix which will enhance margins.

Should VIP growth be stronger and more sustained than expected, it would disproportionately benefit the company as it retains a strong junket network and VIP product offering.

However, at current valuation, we see the current stock price reflecting fair value.

Over the long run, with the future development of Galaxy Macau Phases 3 and 4, the company stands to have outsized growth; however, for now it is still too early to factor in such future development growth into the stock price.

Source: Bernstein
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Fri Sep 01, 2017 8:17 am

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Galaxy on a winner as gamblers jump back in

by Samantha Wong

Macau casino operator Galaxy Entertainment Group (0027) posted an 81 percent surge in net profit to HK$4.63 billion for the first half year due to resurgent demand from gamblers in the world's biggest casino hub.

Earnings per share were HK$1.08. No interim dividend was proposed.

During the period, revenues totaled HK$28.5 billion, up about 11.76 percent from HK$25.5 billion a year earlier.

Galaxy is one of six listed casino operators in Macau.

Galaxy shares closed up 1.76 percent yesterday to HK$49.10. The stock has gained about 43 percent this year and is trading near the highest levels since 2014.

Casino operators in Macau are benefiting from high-roller VIP gamblers, even as the companies shift to courting tourists and leisure gamblers.

Galaxy has boosted business in the higher margin mass-market segment, and non-gaming elements such as hotels, to fend off competition from MGM Resorts International and Las Vegas Sands.

Galaxy posted a "strong performance in the context of the competitive new supply on Cotai," said Union Gaming Group analyst Grant Govertsen, referring to the Macau strip where new casinos have popped up.

"In addition, their StarWorld property on the peninsula continues to show strong growth, making it a significant outperform in that geography," he said.

Still, there are concerns that China's efforts to curtail capital outflows could squeeze availability of funds for junkets. The mainland government said earlier it will prohibit or restrict domestic companies from making overseas investments in sectors including gaming, real estate, hotels and entertainment.

The naming of "restricted" industries may have an impact on the junkets' liquidity environment, as a portion of their collateral base and liquidity channels involve real estate, investment platforms, and entertainment-related sectors, Jamie Soo, an analyst at Daiwa Capital Markets Hong Kong, wrote in a note last week.

Source: The Standard
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Re: Galaxy Ent 0027 / Lui Chee Woo

Postby winston » Thu Aug 02, 2018 3:57 pm

GALAXY ENT (00027.HK) Boracay Project Halted

As Bloomberg quoted from PAGCOR Chairman Andrea Domingo, GALAXY ENT (00027.HK)'s new project in Boracay was shelved, in conformity with President Rodrigo Roa Duterte's order.

Source: AAStocks Financial News
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