In "The Big Banks," Citigroup expects Galaxy Entertainment's future dividend payout ratio to reach as high as 69% and maintains a "Outperform" rating

According to a report by Citigroup, starting from 2023, the dividend payout ratio of Galaxy Entertainment Group (00027.HK) will increase from 32% to 58% in the first half of 2025, while maintaining a prudent asset-liability management policy. Although the bank assumes that the payout ratio will stabilize at 60%, if the company returns all recurring free cash flow to shareholders, the payout ratio could rise to at least 69% between 2025 and 2027.

The bank stated that the company's cash position is robust enough to meet new investment demands and potential business shocks; capital utilization flexibility remains ample; it maintains an "outperform" rating and a target price of HKD 50, and continues to be listed as one of the preferred choices in the Macau gaming sector, as hosting major events helps the company secure stable market share revenue, and there is room for improvement in the payout ratio