Date: October 2, 2024
Broker: UOB Kay Hian
Company Overview
Galaxy Entertainment Group Limited (Galaxy) is a prominent gaming and entertainment company based in Macau, recognized for its premium offerings in the hospitality and gaming sectors.
Market Position
- Gaming Revenue Recovery: Galaxy is positioned to benefit significantly from the recovery of gross gaming revenue (GGR) in Macau, which has shown signs of improvement post-pandemic. The company’s strategic positioning within the market enhances its competitive edge.
Financial Performance
- Strong Earnings Outlook: Galaxy has demonstrated a stronger-than-expected earnings trend in the third quarter of 2024 (3Q24), supported by increased visitation and robust gaming performance.
Strategic Developments
- Expansion Plans: The company is focusing on expanding its market share and enhancing its offerings to attract a broader customer base. Galaxy’s disciplined cost management and strategic initiatives are key factors contributing to its positive financial trajectory.
Future Outlook
- Positive Market Sentiment: With strong visitations anticipated during peak periods, Galaxy is expected to see continued growth in GGR. The company’s ability to capitalize on these trends will be crucial for sustaining its competitive advantage.
Investment Recommendation
- Buy Rating: Maintain a BUY recommendation, reflecting confidence in Galaxy’s strategic initiatives and the company’s potential to deliver strong returns amid Macau’s gaming recovery.
