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Galaxy Entertainment Group Limited (HK:0027)
:0027
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Galaxy Entertainment Group
(0027)
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Rating:72Outperform
Price Target:
HK$43.00
▲(12.04% Upside)
Galaxy Entertainment Group's strong financial performance, characterized by robust revenue growth and solid balance sheet, is the primary driver of its stock score. Technical analysis suggests mixed signals with short-term bearish momentum but a longer-term bullish trend. The valuation is fair, supported by a reasonable P/E ratio and attractive dividend yield.
Positive Factors
Negative Factors
Galaxy Entertainment Group (0027) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$167.83B
Dividend Yield3.13%
Average Volume (3M)11.54M
Price to Earnings (P/E)17.5
Beta (1Y)0.84
Revenue Growth4.94%
EPS Growth15.38%
CountryHK
Employees21,100
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.68
Shares Outstanding4,374,896,000
10 Day Avg. Volume9,534,836
30 Day Avg. Volume11,542,999
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.90
Price to Sales (P/S)3.32
P/FCF Ratio21.47
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit3.92
Enterprise Value/Ebitda12.78
Forecast
1Y Price Target
$48.89Price Target Upside27.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Galaxy Entertainment Group Business Overview & Revenue Model
Company DescriptionGalaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment, and construction materials businesses in Macau, Hong Kong, and Mainland China. The company operates casino games of chance or games of other forms; and provides hospitality and related services. It owns and operates Galaxy Macau, an integrated resort; Broadway Macau, a landmark entertainment and food street destination; StarWorld Macau, a five-star hotel located in the Macau Peninsula; and City Club casinos. The company also manufactures, sells, and distributes construction materials, including concrete pipes and piles, asphalt, ready-mixed concrete, concrete products, cement, aggregates, and slag; provides property investment, handling, quality assurance, project management, and security services; and imports, exports, trades in, and transports construction materials. In addition, it is involved in quarrying, aircraft holding, and vessel holding activities. The company is based in Central, Hong Kong.
How the Company Makes MoneyGalaxy Entertainment Group generates revenue primarily from its casino operations, which include a wide range of gaming options such as VIP gaming, mass table games, and slot machines. The gaming revenue is the largest contributor to the company's earnings. In addition to gaming, the company earns income through its hospitality and entertainment services, which include hotel room bookings, food and beverage sales, retail shopping, and entertainment events. Significant partnerships with luxury brands and entertainment companies enhance its offerings and draw a diverse clientele, further boosting its revenue. The company's strategic location in Macau, a major global gambling hub, plays a crucial role in attracting tourists and gaming enthusiasts, thereby contributing to its financial success.
Galaxy Entertainment Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong revenue and EBITDA growth, strategic market penetration, and effective cost management, alongside increased dividends and visitation rates. However, there are challenges such as slight underperformance in gaming luck and intense market competition. Overall, the sentiment is positive with a focus on growth and confidence in the market.Q2-2024 Updates
Positive Updates
Significant Revenue and EBITDA Growth
GEG reported revenue of $10.9 billion, up 26% year-on-year and 3% quarter-on-quarter. Adjusted EBITDA was $3.2 billion, up 28% year-on-year and 12% quarter-on-quarter.
Strong Balance Sheet
GEG's balance sheet remained robust with net cash of $25.2 billion as of Q2 2024.
Market Penetration and Expansion
The Central Government expanded the IVS to 59 cities, making Macau more accessible to Mainland Chinese visitors.
Operational Efficiency and Cost Management
OpEx reduced by 2% compared to Q1, with staff costs only up 1% quarter-on-quarter. Staff numbers remained stable at approximately 20,000 people.
Visitation and Market Share Increase
In Q3, visitation to Galaxy Macau grew by over 30% compared to Q2, with August seeing a 50% increase over Q2's average.
Dividend Increase
An interim dividend of $0.50 per share was announced, reflecting strong confidence in Macau's market and GEG's future performance.
Negative Updates
Slightly Unlucky Q2 Performance
The company played slightly unlucky in Q2, decreasing adjusted EBITDA by $20 million.
Challenges in Market Competition
The market remains intensely competitive, requiring ongoing adjustments in reinvestment into customer segments.
Company Guidance
During the Q2 2024 earnings call for Galaxy Entertainment Group (GEG), several key metrics and strategic initiatives were highlighted. GEG reported a revenue of $10.9 billion, marking a 26% year-on-year and 3% quarter-on-quarter increase, while adjusted EBITDA reached $3.2 billion, representing a 28% year-on-year and 12% quarter-on-quarter rise. The company maintained a strong balance sheet with a net cash position of $25.2 billion as of Q2 2024, and declared an interim dividend of $0.50 per share. GEG's Mass revenue was 114% of 2019 levels, with Galaxy Macau's Mass business achieving 134-137% of 2019's levels. Strategic initiatives included the installation of smart tables, which began in early July, and the expansion of facilities such as Capella at Galaxy Macau. GEG also noted a disciplined approach to cost management, with total OpEx down 2% from Q1 and staff costs representing around 75% of OpEx. The company remained committed to enhancing customer experience and capturing growth in the Asian market.Galaxy Entertainment Group Financial Statement Overview
Summary
Galaxy Entertainment Group demonstrates strong financial performance with robust recovery in revenue and profitability post-pandemic. The company maintains a solid balance sheet with low leverage, high equity ratio, and effective cash flow management. These factors position the company well for future growth and resilience in the volatile gambling and resort industry.Income Statement
Galaxy Entertainment Group has shown a strong recovery in revenue and profitability after pandemic-related challenges. The gross profit margin improved significantly, reaching 58.8% in 2024. Net profit margin also increased to 20.2%, indicating strong cost management and operational efficiency. Revenue growth has been robust, with a significant increase of 88.8% from 2023 to 2024, reflecting a strong rebound in the gambling and resort industry.85
Very Positive
Balance Sheet
The balance sheet reveals a strong equity position, with an equity ratio of 80.3% in 2024, suggesting financial stability and low leverage. The debt-to-equity ratio remains low at 0.06, indicating prudent financial management. Return on equity is impressive at 11.5%, highlighting effective use of shareholder funds to generate profits.80
Positive
Cash Flow
Cash flow from operations remained strong in 2024, with an operating cash flow to net income ratio of 1.32, indicating efficient cash generation from core operations. Free cash flow showed healthy growth of 18.6% from 2023 to 2024, supporting future investment and debt servicing. However, historical fluctuations in cash flow should be monitored.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 43.43B | 23.00B | 8.40B | 12.95B | 12.88B |
| Gross Profit | 25.54B | 11.61B | -779.32M | 3.43B | -2.31B |
| EBITDA | 12.62B | 9.91B | -1.16B | 3.47B | -1.36B |
| Net Income | 8.76B | 6.83B | -3.43B | 1.33B | -3.97B |
Balance Sheet | |||||
| Total Assets | 94.58B | 87.22B | 80.96B | 85.24B | 92.73B |
| Cash, Cash Equivalents and Short-Term Investments | 22.42B | 17.15B | 16.35B | 21.44B | 18.31B |
| Total Debt | 4.85B | 2.16B | 8.06B | 6.97B | 9.66B |
| Total Liabilities | 18.19B | 16.00B | 16.50B | 16.17B | 24.69B |
| Stockholders Equity | 75.95B | 70.76B | 63.91B | 68.42B | 67.42B |
Cash Flow | |||||
| Free Cash Flow | 6.72B | 5.63B | -8.04B | -10.39B | -13.40B |
| Operating Cash Flow | 11.55B | 11.59B | -2.98B | -3.49B | -7.63B |
| Investing Cash Flow | -4.75B | -10.67B | 3.04B | 4.58B | 9.50B |
| Financing Cash Flow | -1.98B | -7.81B | -155.89M | -2.41B | 6.77B |
Galaxy Entertainment Group Technical Analysis
Negative
38.38
Price Trends
40.05
Negative
38.31
Positive
34.15
Positive
Market Momentum
-0.40
Negative
45.21
Neutral
54.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0027, the sentiment is Negative. The current price of 38.38 is below the 20-day moving average (MA) of 38.63, below the 50-day MA of 40.05, and above the 200-day MA of 34.15, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0027.
Galaxy Entertainment Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $167.83B | 17.46 | 12.59% | 3.13% | 4.94% | 15.38% | |
67 Neutral | $54.10B | 12.31 | 452.88% | 6.02% | 5.59% | -4.38% | |
62 Neutral | $160.73B | 22.50 | 111.35% | 2.51% | -3.13% | -13.65% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $34.59B | 17.92 | ― | 5.60% | -4.41% | -31.45% | |
55 Neutral | HK$23.09B | 11.43 | 11.98% | 1.50% | 8.23% | 175.51% | |
40 Neutral | $20.17B | 8,425.00 | -0.13% | ― | 12.29% | 98.20% |
* Consumer Cyclical Sector Average
HK:0027
Galaxy Entertainment Group
38.38
4.90
14.63%
HK:0880
SJM Holdings
2.87
0.14
5.13%
HK:2282
MGM China Holdings
15.24
5.66
59.11%
HK:3918
NagaCorp
5.22
1.99
61.66%
HK:1928
Sands China
19.95
0.03
0.15%
HK:1128
Wynn Macau
6.65
1.18
21.66%
Galaxy Entertainment Group Corporate Events
Galaxy Entertainment Group Reports Strong 2025 Earnings
Aug 13, 2025
Galaxy Entertainment Group Limited, a prominent player in the gaming and entertainment industry, operates integrated resorts and casinos primarily in Macau, offering a blend of gaming, hospitality, and entertainment experiences.
Galaxy Entertainment Group Announces Change in Company Secretary
Aug 12, 2025
Galaxy Entertainment Group Limited announced a change in its company secretary and authorized representative. Mrs. Sin Li Mei Wah, Jenifer will retire from her role, and Mr. Chong Wai Sang, a qualified lawyer with extensive experience in corporate and commercial legal matters, will take over the position effective 13 August 2025. This change is expected to support the company’s compliance and operational efficiency.
The most recent analyst rating on (HK:0027) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.
Galaxy Entertainment Group Reports Strong H1 2025 Results Amidst Global Challenges
Aug 12, 2025
Galaxy Entertainment Group reported robust financial performance for the first half of 2025, with significant growth in revenue and EBITDA despite global economic challenges. The company continues to strengthen its market position through strategic enhancements in its properties and hosting high-profile entertainment events, contributing to increased foot traffic and customer engagement. The closure of Waldo Casino will see employees reallocated within the company, while GEG’s recent accolades underscore its leadership in the integrated resort and gaming sectors.
The most recent analyst rating on (HK:0027) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.
Galaxy Entertainment Declares Interim Dividend for 2025
Aug 12, 2025
Galaxy Entertainment Group Limited has declared an interim dividend of HKD 0.7 per share for the financial year ending December 31, 2025, with the payment date set for October 31, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning and stakeholder relations positively.
The most recent analyst rating on (HK:0027) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Galaxy Entertainment Group stock, see the HK:0027 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.