Movement Alert|Galaxy Entertainment Falls 3.02% in Regular Trading, Sector Under Pressure as Banks Forecast Weak Q2 EBITDA

Market Focus07-17

On July 17, Galaxy Entertainment declined 3.02% in regular trading, trading at HK$31.46/share, with turnover of HK$581 million. The broader Casinos & Gaming sector saw uniform weakness, with Melco International Development down 3.6%, Sands China down 2.18%, SJM Holdings down 1.31%, MGM China down 1.16%, and Wynn Macau down 0.92%.

The sector-wide selloff follows multiple investment banks issuing cautious Q2 outlooks. Goldman Sachs recently forecast Macau gaming industry Q2 EBITDA to decline 7% year-over-year, cutting Galaxy Entertainment's target price from HK$53.2 to HK$50.3 while maintaining a Buy rating. CLSA projected an even steeper Q2 industry EBITDA decline of 8.6% to US$1.85 billion, citing revenue contraction and sustained margin pressure from low VIP win rates. Both houses attributed weakness to World Cup disruptions, rising international airfare costs, and weather factors. Citi similarly estimated Q2 EBITDA falling to US$1.923 billion, down 7% YoY and 12% sequentially. Despite near-term headwinds, Citi maintained Galaxy as a sector top pick with a HK$44 target, noting the stock's valuation sits nearly two standard deviations below historical averages.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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