Henghua International-Hong Kong stocks-Galaxy Entertainment (0027.HK)
Company profile
Galaxy Entertainment Group Co., Ltd. is one of the world's leading hotel and gaming enterprises. The Group mainly develops and operates hotels, gaming and integrated holiday facilities in Macau.
Silver Entertainment is one of six Macau companies that have been granted a gaming franchise and operates three flagship properties in Macau, namely "Galaxy ™", one of the largest integrated resorts in the world, "Broadway Macau", an adjoining hotel, entertainment and retail landmark resort, and Star Macau, an award-winning high-end project on the Macau peninsula.
Bright spot attention
The results in the third quarter beat expectations: The company recorded a profit of 159.1 in the last quarterHK $100 million, up from the same period last year23.0%Month-on-month growth10.1%AdjustedEBITDA为35.2HK $100 million, up from the same period last year31.4%,Month-to-month ratio increase7.2%AdjustedEBITDAThe rate is22.1%. The company's net cash in the previous quarter233HK $100 million to285Hong Kong dollars 1 billion, with a sound financial position. Although no new projects were launched during the period, the companyEBITDAThe month-on-month increase reflects the strong executive capacity of management and improved operational efficiency.
A gradual increase in market share: Although the opening of new casinos in Macao in the past two years has led to fierce competition in the gaming industry, the company's market share has increased from 20.9% in the second quarter.To the third quarter of the22.1%. The increase in market share is mainly due to the rise of the company's VIP lounge and midfield business respectively.35%及13%To outperform his peers. Located on the road氹The third and fourth phases of Galaxy are expected to be inWith its opening in 2019, the company is expected to continue to benefit from the rapid growth of the guest room business and the improving midfield business in the long run.
Is about to enter the peak tourist season.: With the upgrading of infrastructure and the rise in per capita income in the mainland, Macao, as the only region in China where legal gambling is allowed, its leisure and entertainment facilities are very attractive to mainland family visitors. This year Macau hotel Christmas holiday booking situation is hot, the company's banyan village 12月23All rooms on Sunday have been the first to be full.12月24Day and25The low-cost rooms are also fully booked, and only the high-priced ones are still available. The booking prices of other popular hotels have also been raised, so the peak travel season for Christmas and Lunar New year this year is something to look forward to.
Greater demand from the Greater Bay area Project and the Hong Kong-Zhuhai-Macao Bridge: According toStatistics and Census Bureau of MacaoNearly half of the tourists to Macao come from Guangdong Province. The Greater Bay area plan will strengthen the links between Macao and Guangdong Province. in addition, the Hong Kong-Zhuhai-Macao Bridge will be opened and the restrictions on Hengqin passes may be relaxed, and the flow of people from the mainland to Macau will increase. Although the company did not disclose the details of the third and fourth phases of the Macau Galaxy project and the Hengqin plan, the management is committed to promoting the relevant plans in order to prepare for the potential greater demand and seize the relevant business opportunities.
Industry analysis
Macau's gaming industry has finally bottomed out this year after two years of low ebb. Macao Statistics and Census Bureau announced that the top 10 of this yearThe arrival of inbound passengers within a month2,67210,000 person-times, up from the same period last year.4.6%It is estimated that it will exceed in the whole year3,100Ten thousand person-times, exceeding market expectations. Macau's gaming revenue maintains strong growth, and the industry's overall revenue is expected to increase in the fourth quarter.20%And next year's income is expected to remain close.20%The increase.
The Macao government has recently published a study report on the Mid-term Review of the opening up of Lucky Gaming Rights in Macao, Macao's five-year Development Plan and Macau's Master Plan for Tourism Development, to further implement its commitment to economic growth and to support the development of gambling and tourism. Macau's gaming industry is actively transforming itself into a resort by spending huge amounts of money on developing world-class entertainment and leisure facilities such as hotels and shopping malls. In the future, the profits of Macao's gambling industry will no longer be concentrated on gambling, and the operator who can best match gambling and entertainment with hotels and shopping malls will be the market leader.
Conclusion
Macao's gaming industry has a strong momentum of recovery.Galaxy EntertainmentIts market share has continued to rise since the first quarter of this year and is expected to surpass Sands China to become number one in the industry this quarter. The company's quarterly revenue growth rate is higher than the industry average in both the VIP lounge and the midfield, reflecting their respective competitive advantages; the company is also actively expanding to meet future demand, and the third and fourth phases of its Cooper development plan are expected to be in 2020.年、2022The opening of the business in 2000 will expand the territory.100Ten thousand square meters, the investment value is the first choice in the industry.
从From the perspective of technical analysisGalaxy Entertainment this yearThe stock price outperformed the Hang Seng Index, showing a trend higher than one wave, and rose by more than one wave during the period.70%. Current price calculationCompanyValuation as a track record约21x EV/EBITDABased on the company's leading position and ideal prospectThe current price is still relatively cheap.。Investors may consider 55元BuyLook at the target.68.3 yuan, corresponding to 2018 yuan年18.5x EV/EBITDA, lostQianlangdi 51.05Yuanyi stop loss.
(source:Bloomberg, 2017年11月29日）
