Cash rich Galaxy Entertainment (HKG: 0027 / OTCMKTS: GXYEF) is one of the world’s leading resorts, hospitality and gaming companies. It primarily develops and operates a large portfolio of integrated resort, retail, dining, hotel and gaming facilities in Macau. The Group is listed on the Hong Kong Stock Exchange and is a constituent stock of the Hang Seng Index.
OVERVIEW:
- GEG was one of the three original concessionaires in Macau when the gaming industry was liberalized in 2002. In 2022, GEG was awarded a new gaming concession valid from January 1, 2023, to December 31, 2032.
- GEG operates three flagship destinations in Macau: on Cotai, Galaxy Macau™, one of the world’s largest integrated destination resorts, and the adjoining Broadway Macau™, a unique landmark entertainment and food street destination; and on the Peninsula, StarWorld Macau, an award winning premium property.
- The Group has the largest undeveloped landbank of any concessionaire in Macau. When The Next Chapter of its Cotai development is completed, GEG’s resorts footprint on Cotai will double to more than 2 million square meters, making the resorts, entertainment and MICE precinct one of the largest and most diverse integrated destinations in the world.
- GEG is also progressing plans for its Hengqin project and we are also expanding our focus beyond Hengqin (see: Hengqin: The future of Macau) and Macau to potentially include opportunities within the rapidly expanding Greater Bay Area.
- Rakesh Bordia – Emerging Markets: Finding Value in A Diverse Landscape (Opto Podcast) 43:27 Minutes
- Has the largest land bank in Macau. Other casinos are taped out. Can double it’s capacity.
- Largest and most diversified customer base.
- Net cash balance sheet e.g. better positioned to survive a longer path to normalization after COVID.
- Q4 & FULL YEAR 2022 RESULTS HIGHLIGHTS (Media Release of 2022 Q4 & Annual Results)
- Balance Sheet: Healthy and Liquid Balance Sheet(Media Release of 2022 Q4 & Annual Results):
- As at 31 December 2022, cash and liquid investments were $26.4 billion and net cash was $18.9 billion
- As at 31 December 2022, debt of $7.5 billion primarily reflects ongoing treasury yield management initiatives with minimal core debt of $0.4 billion
- “We are scheduled to progressively open Phase 3 Galaxy International Convention Center, Galaxy Arena and Raffles [hotel] at Galaxy Macau in the second quarter of 2023, with our first MICE [meetings, incentives, conferences, and exhibitions] event being held in April 2023”, said [Company Chairman] Mr Lui… The Galaxy International Convention Center includes the 16,000-seat, multipurpose Galaxy Arena, and 40,000 square metres (430,556 sq feet) of space for MICE events. Galaxy 2022 loss US$438mln, Galaxy Macau Phase 3 in 2Q
- “We believe Phase 3 and Phase 4 should underpin Galaxy’s long-term growth, when the cluster effect continues to build among Galaxy Macau properties… With a mass-market-driven recovery ahead, the addition of non-gaming elements and capacity should further strengthen the company’s ability to gain market share.” Credit Suisse: Galaxy Macau Phases 3 and 4 to help drive market share gain via “cluster effect”
- P/E (Google Finance): N/A / P/E (Yahoo! Finance): N/A
- Dividend Yield (Google Finance): N/A / Forward Dividend & Yield (Yahoo! Finance): N/A
1 YEAR CHART:
LONG TERM CHART:
ADDITIONAL RESOURCES:
- Website
- Investor Relations
- Credit Suisse: Galaxy Macau Phases 3 and 4 to help drive market share gain via “cluster effect” (Inside Asian Gambling) April 2023
- Galaxy 2022 loss US$438mln, Galaxy Macau Phase 3 in 2Q (GGR Asia) Feb 2023
- Media Release of 2022 Q4 & Annual Results (Feb 2023)
- Q4 and Annual Results 2022 Presentation (Feb 2023)
- Rakesh Bordia – Emerging Markets: Finding Value in A Diverse Landscape (Opto Podcast) 43:27 Minutes
- Hengqin: The future of Macau (Inside Asian Gambling) June 2022
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
Similar Posts:
- Analyst: Macau Casinos Possible Chinese Buy Out Targets (GGRAsia)
- Wynn Palace Will Outperform Other Macau Casino Developments (Fitch)
- Fitch Ratings: More Negative on Macau Casino Gaming Near-to-Medium Term Prospects
- Fitch Cuts Macau Gaming Revenue Forecast to 4% on VIP Weakness (Fitch)
- Why Macau Won’t Unseat Las Vegas Any Time Soon (FitchRatings)
- MGM Exec: Selling MGM China Stake Would be Bad Idea (GGRAsia)
- Macau Casino Boom-Bust Cycle in One Chart (Bloomberg)
- Macau Casino Smoking Ban: Nightclubs to the Rescue? (GGRAsia)
- The World Cup Will Likely Hit Macau Gaming Revenue Growth (Macau Business Daily)
- Nomura: “Slow Grind” Recovery Needed for Macau
- Are Macau’s Casino Gamblers Reloading for the October Holidays? (MBD)
- Macau Casino Stocks are Entering a “Multi-year Earnings Decline Cycle” (GGRAsia)
- Sanford Bernstein: Mass Market is Macau Casino Gaming’s Future (GGRAsia)
- Macau Visitor Numbers Will Keep Growing (GGRAsia)
- Understanding the Macau Casino Junket System & Why Its on a Losing Streak (WSJ)
