Goldman Sachs: Galaxy Entertainment has sufficient financial ability to further increase dividends, with a target price slightly reduced to HK$53.4.

Goldman Sachs has released a research report stating that Galaxy Entertainment Group announced its full-year performance as of the end of December last year, with fourth quarter performance strong as expected by Goldman Sachs. EBITDA increased by 29% to HK$4.3 billion, in line with the bank's expectations and above the market consensus range of HK$3.6 billion to HK$4.3 billion. The group declared a final dividend of HK$0.8 per share, equivalent to a payout ratio of 64% for the second half of 2025, up from 58% in the first half of 2025 and 50% in the 2024 fiscal year. Management stated their intention to distribute at least 65% of profits in the future. Goldman Sachs believes that the group has sufficient financial capacity to further increase dividends. The report also noted the upcoming National People's Congress and Chinese People's Political Consultative Conference from March 4 to 11, which may potentially impact demand for gambling and tourism. Regarding performance, Goldman Sachs slightly adjusted their EBITDA forecasts for Galaxy Entertainment Group for the 2026 to 2027 fiscal years by less than 1% and lowered the 12-month target price from HK$54 to HK$53.4 using a sum-of-the-parts valuation method. The stock is currently not highly valued, trading at 10 times the estimated enterprise value for the 2026 fiscal year, and maintains a "buy" rating.