The Zhitong Finance App learned that Lyon released a research report stating that it maintains Galaxy Entertainment's (00027) “outperforms the market” rating and the target price of HK$39.7, and continues to regard it as the industry's first choice. The company's adjusted EBITDA for the third quarter of 2026 increased 10% year-on-year to HK$3,688 million, in line with the bank's and market expectations, including the positive impact of HK$584 million due to a higher-than-normal lounge win rate.

Lyon believes that despite the challenges in gaming demand, the company has achieved EBITDA growth due to its operating scale, streamlined cost base, and high cyclical win rate. The bank is optimistic about Galaxy Entertainment's strategy to maintain revenue market share, maintain a strong balance sheet, and continue to increase dividend payout ratios. It also expects capital expenditure growth to peak in 2027, free cash flow is expected to pick up in 2028, and there is still room for further increases in dividends.

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