# Galaxy Entertainment Group (0027.HK)

Canonical: https://gigainvestors.com/s/0027.HK

Analysis as of: 2026-10-16T07:34:48.503Z. Financial observations: FY2000–FY2025.

Listing currency: HKD. Reporting currency: HKD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 33.28 per share; close as of 2026-10-15.

Estimated value: low HKD 19.45 per share, central HKD 21.48 per share, high HKD 24.17 per share. Buy at or below the central value HKD 21.48 per share. Valuation as of 2026-10-16T07:34:48.503Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 2

- Operating margin variation: 2.91×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.20×

- FY2018: 0.23×

- FY2019: 0.40×

- FY2020: -0.40×

- FY2021: 0.01×

- FY2022: -0.41×

- FY2023: 0.27×

- FY2024: 0.18×

- FY2025: 0.32×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: -4.9%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 56.0%

- Recent gross margin (lower of latest and 3-year median): 54.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.9%

- ROIC including acquisitions, ten-year median: 15.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.6%

- FY2017: 20.4%

- FY2018: 22.6%

- FY2019: 20.2%

- FY2020: -6.9%

- FY2021: 0.2%

- FY2022: -4.9%

- FY2023: 11.1%

- FY2024: 13.3%

- FY2025: 13.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.68×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: HKD 16B

- Net income, five-year total: HKD 24B

- Return on incremental invested capital: 41.8%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.5 pp

- Working capital / revenue, final three-year average: -3.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -2.47×

- FY2022: 1.89×

- FY2023: 0.98×

- FY2024: 0.99×

- FY2025: 1.02×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.4% vs 13.3%

- Per-share earnings: 1.46 to 2.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: HKD 23B

- Cumulative retained earnings: HKD 34B

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.0%

- Per-share value change: HKD 0.54

- Per-share value, starting three-year median: HKD 1.46

- Per-share value, ending three-year median: HKD 2.00

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.0%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: HKD 850M

- Cumulative net income, 10 years: HKD 64B

- ROIC, first three-year median: 20.4%

- ROIC, last three-year median: 13.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: HKD 1.46

- FY2017: HKD 2.44

- FY2018: HKD 3.12

- FY2019: HKD 3.01

- FY2020: HKD -0.92

- FY2021: HKD 0.30

- FY2022: HKD -0.79

- FY2023: HKD 1.56

- FY2024: HKD 2.00

- FY2025: HKD 2.44

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.75×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.34×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.7%

- FY2017: -9.6%

- FY2018: -0.3%

- FY2019: -6.7%

- FY2020: 3.9%

- FY2021: 5.6%

- FY2022: -0.6%

- FY2023: -5.5%

- FY2024: -3.0%

- FY2025: -3.6%

## Holders

## Price story

Down 41% since Jul 2023 · sales -31.9%

Story as of 2026-10-16T10:00:02.589Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

### Sales · FY2024–2025

sales -31.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: HKD 53B 

- FY2017: HKD 49B 

- FY2018: HKD 55B 

- FY2019: HKD 29B 

- FY2020: HKD 13B 

- FY2021: HKD 13B 

- FY2022: HKD 8.4B 

- FY2023: HKD 23B 

- FY2024: HKD 43B 

- FY2025: HKD 30B 

### Gross margin · FY2025

gross margin 54.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 63.9% 

- FY2017: 82.3% 

- FY2018: 84.3% 

- FY2019: 57.4% 

- FY2021: 26.5% 

- FY2023: 50.5% 

- FY2024: 58.8% 

- FY2025: 54.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in resorts & casinos; annual sales are HKD 29.6 billion.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2025-12-31 (filed 2026-10-16T07:34:48.503Z); FY2025: revenue 29591615000; grossProfit 16139137000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0027.HK: Galaxy Entertainment Group Limited, an investment holding company, engages in the gaming and entertainment businesses in Macau, Hong Kong, and Mainland China. It operates through Gaming and Entertainment, and Construction Materials segments. The company operates casino games of chance or games of other forms; provides hospitality and related services; and manufactures, sells, and distributes construction materials. It also develops and operates three flagship destinations in Macau, such as integrated destination resorts in Galaxy Macau; unique landmark entertainment and food street destination adjoining Broadway Macau; and StarWorld Hotel, a five-star luxury hotel on the Peninsula. In addition, the company engages in the sale and distribution of concrete pipes; provision of management services; manufacture, sale, distribution, and laying of asphalt, road base and bituminous materials, bricks, concrete pipes, cement, and slag; and provision of road marking services and ready-mixed concrete, as well as management of galaxy international convention center and galaxy arena. Further, it offers truck leasing, quality assurance, cross-border transportation, hospitality, marketing and promotion, and project management services. The company was incorporated in 1987 and is based in Central, Hong Kong.

### Why customers stay

Margins ranged from 50.5% to 58.8% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2023-12-31 (filed 2026-10-16T07:34:48.503Z); FY2023: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2024-12-31 (filed 2026-10-16T07:34:48.503Z); FY2024: grossProfit / revenue = 58.8%.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2025-12-31 (filed 2026-10-16T07:34:48.503Z); FY2025: grossProfit / revenue = 54.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.503Z); 10-year return on capital observations [[2016,0.18576076530554592],[2017,0.20435463360820044],[2018,0.2261950805954391],[2019,0.2019888057824212],[2020,-0.06931317609662134],[2021,0.001833941239235149],[2022,-0.04887227711008184],[2023,0.11130254381595886],[2024,0.13261792931664373],[2025,0.13639201330466025]]; median 0.13450497131065198. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 10 years; bought back HKD 16.6 million of shares.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2016-12-31 (filed 2026-10-16T07:34:48.503Z); FY2016: growth capex 0; upkeep 2075014000; owner earnings 7691731000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2017-12-31 (filed 2026-10-16T07:34:48.503Z); FY2017: growth capex 0; upkeep 2008270000; owner earnings 11755681000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2018-12-31 (filed 2026-10-16T07:34:48.503Z); FY2018: growth capex 0; upkeep 3008737000; owner earnings 13724409000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2019-12-31 (filed 2026-10-16T07:34:48.503Z); FY2019: growth capex 0; upkeep 4118390000; owner earnings 12307744200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2023-12-31 (filed 2026-10-16T07:34:48.503Z); FY2023: growth capex 3123664000; upkeep 2835702000; cash acquisitions 850342000; owner earnings 6702337600. Growth capex plus acquisitions / owner earnings = 0.5929283538328478.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2024-12-31 (filed 2026-10-16T07:34:48.503Z); FY2024: growth capex 1267086000; upkeep 3560992000; cash acquisitions 0; owner earnings 8641519000. Growth capex plus acquisitions / owner earnings = 0.1466276935802606.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2025-12-31 (filed 2026-10-16T07:34:48.503Z); FY2025: growth capex 0; upkeep 3473334000; cash acquisitions 0; owner earnings 10862734000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.503Z); Dividend observations: [[2016,1408298000],[2017,2525589000],[2018,3929932000],[2019,3940159000],[2020,1950596000],[2021,0],[2022,1307566000],[2023,873783000],[2024,3496218000],[2025,5247390000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/0027.HK.json#2025-12-31 (filed 2026-10-16T07:34:48.503Z); FY2025: cash repurchases 16649000 HKD.

### Are managers owners

Insiders own 50.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0027.HK SharesStats.PercentInsiders = 50.327999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years; actual growth was 33.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.503Z); Ten-year compound average after fade. Initial solved rate 0.09609063145926366. Price 33.28; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.13534259036112084 → FY2025 2.479321457988965. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 31.85 per share

- 2016-11: HKD 38.50 per share

- 2016-12: HKD 33.80 per share

- 2017-01: HKD 37.15 per share

- 2017-02: HKD 37.20 per share

- 2017-03: HKD 42.55 per share

- 2017-04: HKD 43.30 per share

- 2017-05: HKD 45.05 per share

- 2017-06: HKD 47.40 per share

- 2017-07: HKD 48.35 per share

- 2017-08: HKD 49.10 per share

- 2017-09: HKD 55.00 per share

- 2017-10: HKD 53.10 per share

- 2017-11: HKD 56.15 per share

- 2017-12: HKD 62.70 per share

- 2018-01: HKD 69.30 per share

- 2018-02: HKD 68.50 per share

- 2018-03: HKD 71.25 per share

- 2018-04: HKD 69.40 per share

- 2018-05: HKD 69.05 per share

- 2018-06: HKD 60.75 per share

- 2018-07: HKD 63.05 per share

- 2018-08: HKD 58.10 per share

- 2018-09: HKD 49.65 per share

- 2018-10: HKD 42.40 per share

- 2018-11: HKD 48.05 per share

- 2018-12: HKD 49.80 per share

- 2019-01: HKD 54.00 per share

- 2019-02: HKD 55.75 per share

- 2019-03: HKD 53.45 per share

- 2019-04: HKD 58.65 per share

- 2019-05: HKD 47.40 per share

- 2019-06: HKD 52.65 per share

- 2019-07: HKD 54.00 per share

- 2019-08: HKD 49.20 per share

- 2019-09: HKD 48.75 per share

- 2019-10: HKD 54.15 per share

- 2019-11: HKD 51.20 per share

- 2019-12: HKD 57.40 per share

- 2020-01: HKD 51.50 per share

- 2020-02: HKD 51.45 per share

- 2020-03: HKD 41.35 per share

- 2020-04: HKD 50.45 per share

- 2020-05: HKD 52.30 per share

- 2020-06: HKD 52.75 per share

- 2020-07: HKD 52.80 per share

- 2020-08: HKD 61.05 per share

- 2020-09: HKD 51.95 per share

- 2020-10: HKD 51.10 per share

- 2020-11: HKD 59.00 per share

- 2020-12: HKD 60.25 per share

- 2021-01: HKD 58.80 per share

- 2021-02: HKD 70.90 per share

- 2021-03: HKD 70.00 per share

- 2021-04: HKD 68.40 per share

- 2021-05: HKD 62.90 per share

- 2021-06: HKD 62.15 per share

- 2021-07: HKD 52.70 per share

- 2021-08: HKD 49.85 per share

- 2021-09: HKD 40.00 per share

- 2021-10: HKD 42.10 per share

- 2021-11: HKD 42.65 per share

- 2021-12: HKD 40.40 per share

- 2022-01: HKD 44.75 per share

- 2022-02: HKD 43.45 per share

- 2022-03: HKD 47.00 per share

- 2022-04: HKD 45.60 per share

- 2022-05: HKD 41.85 per share

- 2022-06: HKD 46.80 per share

- 2022-07: HKD 46.70 per share

- 2022-08: HKD 44.10 per share

- 2022-09: HKD 46.40 per share

- 2022-10: HKD 35.85 per share

- 2022-11: HKD 46.70 per share

- 2022-12: HKD 51.60 per share

- 2023-01: HKD 54.40 per share

- 2023-02: HKD 52.20 per share

- 2023-03: HKD 52.45 per share

- 2023-04: HKD 55.50 per share

- 2023-05: HKD 48.55 per share

- 2023-06: HKD 49.70 per share

- 2023-07: HKD 56.60 per share

- 2023-08: HKD 51.90 per share

- 2023-09: HKD 47.15 per share

- 2023-10: HKD 43.85 per share

- 2023-11: HKD 40.40 per share

- 2023-12: HKD 43.75 per share

- 2024-01: HKD 40.60 per share

- 2024-02: HKD 42.75 per share

- 2024-03: HKD 39.30 per share

- 2024-04: HKD 35.45 per share

- 2024-05: HKD 37.50 per share

- 2024-06: HKD 36.40 per share

- 2024-07: HKD 32.85 per share

- 2024-08: HKD 30.20 per share

- 2024-09: HKD 39.05 per share

- 2024-10: HKD 34.55 per share

- 2024-11: HKD 34.55 per share

- 2024-12: HKD 33.00 per share

- 2025-01: HKD 33.25 per share

- 2025-02: HKD 31.90 per share

- 2025-03: HKD 30.40 per share

- 2025-04: HKD 28.20 per share

- 2025-05: HKD 33.40 per share

- 2025-06: HKD 34.85 per share

- 2025-07: HKD 38.40 per share

- 2025-08: HKD 41.00 per share

- 2025-09: HKD 42.88 per share

- 2025-10: HKD 38.72 per share

- 2025-11: HKD 40.24 per share

- 2025-12: HKD 38.32 per share

- 2026-01: HKD 39.80 per share

- 2026-02: HKD 41.76 per share

- 2026-03: HKD 35.00 per share

- 2026-04: HKD 33.16 per share

- 2026-05: HKD 31.32 per share

- 2026-06: HKD 29.42 per share

- 2026-07: HKD 34.20 per share

- 2026-08: HKD 34.16 per share

- 2026-09: HKD 31.62 per share

- 2026-10: HKD 33.28 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 21.85 per share, central HKD 24.26 per share, high HKD 27.46 per share

- FY2017: low HKD 21.89 per share, central HKD 24.37 per share, high HKD 27.68 per share

- FY2018: low HKD 25.55 per share, central HKD 30.99 per share, high HKD 35.59 per share

- FY2019: low HKD 21.71 per share, central HKD 24.19 per share, high HKD 27.48 per share

- FY2020: low HKD 11.99 per share, central HKD 13.07 per share, high HKD 14.51 per share

- FY2021: low HKD 12.71 per share, central HKD 13.79 per share, high HKD 15.24 per share

- FY2025: low HKD 18.42 per share, central HKD 20.44 per share, high HKD 23.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:38.524Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.