Citi maintains a "buy" rating on GALAXY ENT (00027) with a target price lowered to 45.2 Hong Kong dollars.

DBS released a research report, stating that they have lowered the target price for GALAXY ENT (00027) from 55.22 Hong Kong dollars to 45.2 Hong Kong dollars, but still maintain a "buy" rating on the stock. The report states that Macau's gross gaming revenue increased by 23.9% year-on-year to 22.7 billion Macau patacas last year. Based on the continuous growth of visitors to Macau, as well as Galaxy Entertainment's strong business foundation and new hotel and entertainment product lines, the bank believes that Galaxy Entertainment's market share will increase by 1 percentage point to 20% this year, leading to an EBITDA profit margin of nearly 30%. The bank believes that the company's strategy of increasing non-gaming offerings, including entertainment and dining experiences, will continue to attract more tourists and strengthen customer loyalty. The bank also pointed out that Galaxy Entertainment has the best liquidity among gaming stocks, with net cash of over 15 billion Hong Kong dollars and annual operating cash flow of over 10 billion Hong Kong dollars, which should be sufficient to support continued investments, including a 28 billion Macau patacas investment over the next decade to strengthen the integrated resort, mainly focusing on non-gaming projects that can further boost market share.