Hong Kong Stock Movement | NAGACORP (03918) Surges Over 7% in Early Trading as H1 Results Beat Market Expectations; Citi Notes Naga3 Project Uncertainties Persist

NAGACORP (03918) surged over 7% in early trading. As of press time, the stock was up 6.67% to HK$5.76 with a trading volume of HK$41.11 million.

On the news front, NAGACORP recently released its interim results. The company reported total gaming revenue of approximately $332 million for the first half of the year, representing a 17.2% year-over-year increase. Net profit reached approximately $149 million, marking a substantial 68.8% year-over-year growth.

UBS issued a research report stating that NAGACORP's gross gaming revenue (GGR) momentum is accelerating, driven by increased business traveler numbers and local demand growth in Phnom Penh, Cambodia. The bank noted that due to first-half results exceeding expectations, it is raising its total gaming revenue forecasts for 2025-2026 by 21% to 29%. UBS expects overall gaming revenue to grow 32% and 10% year-over-year for this year and next year, respectively.

Citi commented that NAGACORP's first-half results exceeded expectations, with strong gross gaming revenue (GGR) growth of 17% year-over-year and EBITDA margin expanding by 9.2 percentage points year-over-year. While the resumption of interim cash dividends was surprising to the bank, the 30% payout ratio was below their full-year expectation of 60%.

The bank noted that although there are signs of fundamental improvement, the lack of updates on the Naga3 project means uncertainties continue to exist, and the target opening date of September 2029 may face potential delays.