Lyon: Maintains GALAXY ENT (00027) "Outperform" rating with a target price of HK$45.8.

Lyon released a research report stating that it maintains a "outperform" rating on GALAXY ENT (00027) with a target price of HK$45.8. After normalizing last quarter's net profit margin, GALAXY ENT's adjusted EBITDA increased by 5% to HK$3.3 billion, exceeding market and Lyon's expectations by 3% and 5% respectively. The group's entertainment channels this year have become clearer, and it is believed that this will help the company generate good income during the off-season. Lyon mentioned that GALAXY ENT has net cash of HK$27.1 billion and announced a final dividend of HK$0.50, with a dividend payout ratio of 50% for the second half of 2024 and 2024. However, the bank believes that the group will not increase its dividend payout ratio in the foreseeable future. The report indicates that GALAXY ENT's Macau Galaxy Macau Hotel is set to open in the middle of this year, and the bank expects the group to reallocate some gaming tables from the StarWorld Hotel to the gaming area of the Galaxy Macau Hotel. Meanwhile, the StarWorld Hotel will focus more on the mass market and will add live electronic table games, which the bank believes will better utilize the property space.