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CLSA: GALAXY ENT (00027.HK) Has Solid Cash Reserves to Raise ROE via Leverage; Div. Payout Ratio Increase Expected
2025-09-19 12:47:57
Among all licensed casinos in Macau, GALAXY ENT (00027.HK) has the most solid cash reserves, making it well-positioned to use financial leverage to enhance its return on equity (ROE), CLSA published a research report saying.

Potential capital deployment strategies include, but are not limited to, investing in regional opportunities and increasing dividends. Any chosen strategy would help improve capital efficiency, thereby increasing ROE through financial leverage.

Therefore, the broker kept rating at Outperform on GALAXY ENT, with a target price of $50.3. GALAXY ENT is one of the broker's two top picks among Macau casinos, with net cash being equivalent to 17% of its current market value.

The broker maintained its original investment thesis, and liked GALAXY ENT's potential to expand market share and its room to further increase its dividend payout ratio.
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AASTOCKS Financial News
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