Goldman Sachs released a research report stating that it slightly raised the target price of Galaxy Ent (00027) by 0.7%, from 53.8 Hong Kong dollars to 54.2 Hong Kong dollars, maintaining a "buy" rating. The bank slightly increased its EBITDA forecast for Galaxy Ent for the 2024-2026 fiscal years by 1%.

The bank believes that compared to other peers, Galaxy Ent has more players in the mid- to high-range middle market, but generally lacks players in the low-end and high-end markets. The company's management believes that launching a JUPeL Le hotel with 100 suites in the middle of the 2025 fiscal year will fill the gap in its super luxury product offering. Additionally, it is expected that the company's market share of gaming revenue in the fourth quarter of 2024 will be 20.5%, higher than 19.1% in the third quarter, and is expected to rise to 21% in 2025. The management is optimistic about the company's business prospects.

The report states that in the third quarter of 2024, Galaxy Ent is likely to be affected by a decrease in VIP customer win rate and a reduction in revenue contribution from building materials business, resulting in a quarterly EBITDA decrease of 3% to 3.1 billion Hong Kong dollars, which is at 80% of pre-pandemic levels. The market share of the Cotai Strip casino remains the highest, accounting for about 23% of the middle market gaming revenue share, higher than the 20% in the first quarter of 2024 and higher than MGM China (02282) at 12% and Wynn Palace at 10%.